[Budget of the United States Government]
[V. Investing in the Common Good: Program Performance in Federal Functions]
[18. Transportation]
[From the U.S. Government Publishing Office, www.gpo.gov]


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                           18.  TRANSPORTATION

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                           Table 18-1.  Federal Resources in Support of Transportation
                                            (In millions of dollars)
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                                                                               Estimate
               Function 400                   1999   -----------------------------------------------------------
                                             Actual     2000      2001      2002      2003      2004      2005
----------------------------------------------------------------------------------------------------------------
Spending:
  Discretionary Budget Authority..........    13,673    13,286    14,525    14,464    14,952    15,581    16,344
  Mandatory Outlays:
    Existing law..........................     1,945     2,362     2,061     1,630     1,954     1,885     1,858
    Proposed legislation..................  ........  ........        13        13        14        15        15
Credit Activity:
  Direct loan disbursements...............       159     1,002       868       N/A       N/A       N/A       N/A
  Guaranteed loans........................     1,767     2,825       927       N/A       N/A       N/A       N/A
Tax Expenditures:
  Existing law............................     1,870     1,970     2,080     2,200     2,330     2,460     2,605
----------------------------------------------------------------------------------------------------------------
N/A = Not available.

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   A transportation system is an indispensable component of every 
economy and society. It can increase the value of goods by moving them 
to locations where they are worth more. The system allows people to 
commute to places of employment where their time has higher value. By 
extending the spatial boundaries of commodity and labor markets, 
transportation encourages competition and production. Our transportation 
system is vital to America's standard of living. An intermodal 
transportation system that serves best, must offer accessability, 
efficiency, reliability, safety, security, and be environmentally 
friendly. In 2001, the Federal Government will invest over $54 billion 
on transportation. This compares with $35 billion spent on 
transportation in 1993. In the past eight years, Federal transportation 
spending has increased by 30 percent in constant dollars. This increase 
has been necessary to keep the Nation's infrastructure in good 
condition, thereby facilitating the movement of goods and people, and to 
ensure that the Air Traffic Control System is able to keep pace with the 
increasing demands of growing air traffic.

 Safe Operations

   Improving transportation safety is the number one Federal Government 
transportation objective. The Federal Government works with State and 
local governments and private groups to minimize the safety risks 
inherent in transportation. It regulates motor vehicle design and 
operation, inspects commercial vehicles, educates the public regarding 
safety, directs air and waterway traffic, rescues mariners in danger, 
monitors railroad safety and conducts safety research.
   A range of Federal programs and activities help reduce the number of 
deaths and injured persons from highway crashes, which number about 
42,000 and over three million a year, respectively. Federal programs 
reach out to State and local partners, industry and health care 
professionals to identify the causes of crashes and develop new 
strategies to reduce deaths, injuries, and the resulting medical costs. 
These partnerships yield results--in 1998 the Nation's safety belt use 
reached an all-time high of 70 percent. Alcohol related highway 
fatalities reached a new low in 1998, at 38 percent of all highway 
deaths. Along with coordinating such national traffic safety efforts, 
the National Highway Traffic

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Safety Administration (NHTSA) regulates the design of motor vehicles, 
investigates reported safety defects, and distributes traffic safety 
grants to States. The budget proposes $499 million for NHTSA, a 33-
percent increase over 2000. This Administration supports programs 
designed to reduce drunk and drugged driving, along with new initiatives 
that focus on reducing injuries and fatalities among minority, youth and 
rural populations. Research efforts include developing advanced 
technologies to reduce the likelihood of vehicle rollovers. 
Additionally, a new program will target unsafe driving practices in an 
effort to reduce the incidences of aggressive driving.
   In partnership with the highway community, the Federal Highway 
Administration (FHWA) works to identify top roadway safety issues and 
countermeasures. In 2001, efforts will focus on run-off-road and 
pedestrian/bicycle crashes, since these safety problems contributed 36 
percent and 15 percent respectively of total highway fatalities in 
calendar year 1997. In 2001, safety construction programs will 
contribute $760 million to correct unsafe roadway design and remove 
roadway hazards.
   Federal funding for the new Federal Motor Carriers Safety 
Administration (FMCSA) is proposed at $279 million in 2001, an increase 
of 54 percent over 2000. The Administration's goal is to reduce motor 
carrier fatalities by 50 percent in 10 years. The FMCSA will increase 
motor carrier enforcement, improve data, and expand roadside 
inspections. In addition, States will be provided dedicated funding to 
heighten enforcement of commercial drivers (e.g., truck and bus drivers) 
licenses in an effort to keep improperly registered vehicles and drivers 
off our Nation's highways. FMCSA develops uniform standards that improve 
motor vehicle and driver safety, helps coordinate law enforcement 
activities, and aligns interstate trucking safety requirements. Grants 
to States to enforce Federal and compatible State standards for 
commercial motor vehicle safety inspections, traffic enforcement, and 
compliance reviews are proposed to increase 78 percent over 2000 to $187 
million in 2001.
   All of these programs will help reach the Administration's safety 
goals, including reducing the rate of highway-related fatalities per 100 
million vehicle miles traveled (VMT). In 1998, the highway related 
fatalities and injured persons reached all time record lows. The 
fatalities per 100 million vehicle miles traveled were 1.6. The injured 
persons per 100 million miles traveled were 122. The 2001 target rates 
are 1.5 for fatalities and 113 for injured persons.
   Perhaps the Federal Government's most visible transportation safety 
function involves air traffic control and air navigational systems. The 
Federal Aviation Administration (FAA) handles about two flights a 
second, moving 1.5 million passengers safely each day. In 2001, the FAA 
will perform nearly 320,000 safety related inspections. To meet safety 
needs, the Administration plans to spend $9.1 billion, 14.4 percent over 
the 2000 level, on FAA operations and capital modernization. The FAA 
will seek to:
   Reduce the fatal aviation accident rate for commercial air 
          carriers from a 1994-1996 baseline of 0.037 fatal accidents 
          per 100,000 flight hours. In 1998, the fatal aviation accident 
          rate for commercial air carriers was .006 per 100,000 flight 
          hours. This rate puts the Department on target to reaching the 
          White House Commission on Aviation Safety and Security goal of 
          reducing fatal accidents by 80 percent by 2007 and ahead on 
          achieving the 2001 target of 0.031 per 100,000 flight hours.
   The Federal Government also plays a key safety role on our waterways, 
where the Coast Guard saves one life every two hours, 24 hours a day, 
365 days a year. The Coast Guard operates radio distress systems, guides 
vessels through busy ports, operates reliable and safe navigation 
systems, regulates vessel design and operation, enforces U.S. and 
international safety standards, provides boating safety grants to 
States, and supports a 35,000-member voluntary auxiliary that provides 
safety education and assists regular Coast Guard units. The Coast Guard 
is recognized as the world leader in maritime search and rescue. The 
budget proposes $3.7 billion for Coast Guard operations and capital, a 
12-percent increase over the current level. The Coast Guard seeks to:


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   Reduce the number of recreational boating fatalities from a 
          1998 baseline of 793 fatalities. In 1998, recreational boating 
          fatalities were down from 821 in 1997. The 2001 target is at 
          or below 720 fatalities.
   The Federal railroad safety program is also expanding. The 
Administration's budget proposes $117 million in 2001, five percent over 
the 2000 level. The program works in partnership with the rail industry. 
The Safety Assurance and Compliance program brings together rail labor, 
management and the Federal Government to determine root causes of safety 
problems. This partnership has produced results: from 1994 to 1998, the 
railroad-related fatality rate, on-the-job casualty rate, and train 
crash rate fell by twenty-one, thirty-five, and one percent, 
respectively. The Federal Railroad Administration has made steady 
progress towards its multi-year safety goals. For example, its plans are 
to:
   Reduce the rate of rail-related crashes from a 1998 baseline 
          of 3.77 per million train-miles to 3.29 or less in 2001; and 
          to reduce the rate of rail-related fatalities from a 1998 
          baseline of 1.48 per million train miles to 1.23 or less in 
          2001. The 1998 level of fatalities (the 1.48 rate) was the 
          lowest level in a decade.
   Reduce the grade crossing accident rate in 2001 to 1.39 per 
          the product of million train-miles times trillion highway 
          vehicle-miles-traveled. The 1998 accident rate was 1.98, a 
          significant decline from the 1997 rate of 2.27.
   Similarly, the Federal pipeline safety program has implemented 
several risk management projects to improve the targeting and 
effectiveness of regulations while reducing or minimizing their costs. 
The Federal Government also develops regulations and standards for 
hazardous materials shipping, and enforces those standards for every 
mode of transportation. The Administration seeks to:
   Reduce the number of serious hazardous materials incidents in 
          transportation to 401 or fewer in 2001, from a peak of 428 in 
          1998. The 1998 record is not as positive as those of most of 
          the other modes of transportation--there were 10 more 
          incidents in 1998 than there were in 1997. The Administration 
          is giving this area special attention.

 Infrastructure and Efficiency Investment

   In 1996, the U.S. transportation system served 265 million people and 
six million businesses and supported 4.4 trillion passenger-miles and 
3.7 trillion cargo ton-miles. The Federal Government helped develop 
large parts of the system, with funding supported by user fees and 
transportation taxes. Investment is targeted to maintaining and 
improving the condition of the existing system while at the same time 
advancing safety, quality, efficiency, and the intermodal character of 
transportation infrastructure. This investment ensures the Nation will 
meet commerce needs, and enhance its efficiency, which leads to advanced 
economic growth as well as international competitiveness.

   Innovative Financing: Since 1994, the Administration has introduced a 
number of financing innovations designed to streamline procedures, 
improve existing programs, and implement new ideas for improving the 
Nation's transportation infrastructure. In total, these initiatives are 
helping advance nearly 200 projects, representing a total capital 
investment of more than $20 billion. For example, there is the 
Transportation Infrastructure Finance and Innovation Act (TIFIA) 
program, authorized by TEA-21. TIFIA provides Federal credit assistance 
to major transportation investments of critical national importance, 
such as: intermodal facilities; border crossing infrastructure; highway 
trade corridors; and transit and passenger rail facilities with regional 
and national benefits. In 2000, $90 million of TIFIA funding supported 
$1.8 billion in credit assistance. In 2001, a funding level of $96 
million will be provided to continue this program
   Highways and Bridges: About 957,098 miles of roads and all bridges 
are eligible for Federal support, including the National Highway System 
(NHS) and Federal lands roads. In 2001, the Federal Government plans to 
spend $30 billion to maintain and expand these roads with funding from 
motor fuels taxes, mainly the gasoline tax. This is close to $2 billion 
more than was provided in 2000, and is $12 billion more than was 
provided in

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1993. The Federal gas tax is 18.4 cents per gallon, of which 15.4 cents 
goes to the Highway Trust Fund's highway account to finance grants to 
States and local governments for highway-related repair and improvement.
   In aggregate, State and local governments provide 56 percent of 
highway and bridge infrastructure spending, most of which they generate 
through their own fuel and vehicle taxes. The average State gasoline tax 
was 19.8 cents per gallon in 1998. State and local governments 
accelerate their infrastructure projects through debt financing, such as 
bonds and revolving loan funds. The Federal Highway Administration will 
work with State and local governments to:
   Increase the percentage of miles on the NHS that meet 
          pavement performance standards for acceptable ride quality--
          from 90.4 percent in 1996 to 91.9 percent in 2001. In 1998, 
          the percentage was 91.8 percent.
   Reduce delays on Federal-aid highways from 9.0 hours of delay 
          per 1,000 vehicle miles traveled in 1998 to 8.9 in 2001.
   Reduce the percentage of bridges on the NHS that are 
          deficient--from 23.1 percent in 1998 to 22.3 percent in 2001. 
          Between 1993-1998, bridges on the NHS that are deficient 
          decreased by 3.6 percent, from 26.7 percent to 23.1 percent.

   Transit: As with highways, the Federal Government assists State and 
local governments to improve mass transit. Of the Federal motor fuels 
tax, 2.86 cents a gallon goes to the Highway Trust Fund's Mass Transit 
Account, which funds transit grants to States and urban and rural areas. 
Federal capital grants comprise about half of the total spent each year 
to maintain and expand the Nation's 6,000 bus, rail, trolley, van, and 
ferry systems. Together, States and localities invest over $3 billion a 
year on transit infrastructure and equipment.
   Federal funding growth has been substantial. In 2001, the Federal 
Government plans to spend $6.1 billion on transit infrastructure. This 
compares with $5.8 billion in 2000 and $2.6 billion in 1993. The Federal 
role is especially important in financing new urban bus and rail transit 
systems, as well as rural bus and van networks. Millions of Americans 
use transit for their daily commute, easing roadway congestion and 
reducing air pollution. Many riders depend on public transportation due 
to age, disability, or income. Transit can also provide economic 
opportunity. For example, the Job Access and Reverse Commute program 
will help to provide transportation services in urban, suburban and 
rural areas to assist welfare recipients and low income individuals 
reach employment opportunities. The Federal Transit Administration seeks 
to:
   Increase transit ridership from 39 billion passenger miles 
          traveled in 1996 to 42.86 billion in 2001. In 1998, transit 
          ridership was 41.6 billion passenger miles traveled.

  Passenger Rail: The Federal Government will invest $521 million in 
2001 to support Amtrak's capital improvements and equipment maintenance. 
The combination of Federal and private sector investment in the 
Northeast Corridor is expected to soon show results, with the beginning 
of high-speed rail service between Boston and New York which is 
estimated to reduce trip times by 35 percent.
   The Administration proposes to invest $468 million in capital in 2001 
to enhance inter-city passenger rail service. This new program will 
provide matching grants to enhance or expand inter-city rail service 
nationwide. This initiative will contribute to the goals of improving 
the overall financial health of Amtrak, thus ensuring the long-term 
stability, and expanding intercity rail passenger service. These 
investments will be targeted to projects which make good financial sense 
for Amtrak and also generate substantial benefits for the general 
public. Rail service can play an important role in improving mobility 
and offers an environmentally sound alternative to simply adding highway 
capacity in congested corridors. Enhancing rail service by improving 
average speed can provide the foundation for the introduction of high 
speed rail service.


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   The Federal Railroad Administration seeks to:
   Increase Amtrak's intercity ridership from 21.1 million 
          passengers per year in 1998 to the 2001 target (based on the 
          introduction of high-speed rail service) of 25.3 million. In 
          1999, AMTRAK ridership was 21.5 million passengers. Improving 
          ridership is important to AMTRAK's efforts to achieve self-
          sufficiency.

   Aviation and Airports: The Federal Government seeks to ensure that 
the aviation system is safe, reliable, accessible, integrated, and 
flexible. In 2001, the Administration will continue aggressive 
modernization of FAA air traffic control equipment, including both 
development of new technologies and improvements to existing systems to 
decrease air traffic delays. The Free Flight Phase I program is 
implementing air traffic automation aids that allow controllers to use 
runway capacity at busy airports more efficiently. In addition, FAA is 
developing controller pilot data link and Global Positioning System 
(GPS) technologies to improve efficiency in handling aircraft. Ongoing 
replacement of airport surveillance and beacon radar systems will 
improve the reliability of equipment used for air traffic control. 
Finally, about 3,300 airports throughout the country are eligible 
recipients of Airport Improvement Program funding. This program helps 
enhance airport capacity, safety, security, and noise mitigation. These 
funds augment other airport funding sources, such as bond proceeds, 
State and local grants, and passenger facility charges which airports 
are permitted to impose on their passengers. With 98 percent of the 
population living within 20 miles of an airport which supports 
commercial carriers, most citizens have excellent access to air 
transportation.
  To ensure the effective and efficient use of its resources, the FAA is 
continuing implementation of acquisition, financial and personnel 
reforms. Procurement reform has enabled the FAA to pre-screen 
contractors ensuring that firms have the capabilities and experience to 
deliver technology systems that improve air traffic control. Personnel 
reform will result in a new pay-for-performance system that focuses 
employees on key agency goals. In addition, the FAA will use its 
existing legislative authorities to create a performance-based 
organization for air traffic control services to be funded through 
direct user fees. These combined efforts will allow the FAA to operate 
more like a business, modernize more quickly, and be more responsive to 
customers. The Administration seeks to:
   Reduce the rate of air travel delays from the 1998 baseline 
          of 190 delays per 100,000 activities to 171 in 2001. To 
          accomplish this goal, the requested 2001 budget for FAA 
          operations will increase by 12 percent or $699 million, and 
          the FAA budget for capital modernization for capital 
          acquisition, to upgrade air traffic control, will increase by 
          22 percent, or $450 million, compared with the 2000 level.

   Maritime Transportation: For our Nation's commercial shipping 
infrastructure, Federal loan guarantees issued by the Maritime 
Administration make it easier to build and renovate vessels in U.S. 
shipyards, while the Coast Guard establishes and operates radio and 
visual aids-to-navigation infrastructure that enables the safe movement 
of shipping. Port development is left largely to State and local 
authorities, which have invested over $16 billion in infrastructure 
improvements over the past 50 years. The Maritime Administration and the 
Coast Guard are co-leading a new effort to develop more comprehensive 
coordination, leadership, and cooperation among Federal, State, and 
local agencies and private sector owners and operators of the Marine 
Transportation System (MTS). The MTS is faced with growing levels of 
demand, shifting and competing user requirements, and safety and 
information system improvements. The Administration seeks to:
   Attain a stable commercial shipbuilding order book in U.S. 
          shipyards of 530,000 gross tons by 2001. Between 1997 and 
          1998, U.S. commercial shipbuilding order book fell from 
          506,000 gross tonnage to 407,312. The Maritime Administration 
          is focused on reversing this trend. In 1999, Title XI loan 
          guarantees were awarded for the construction of two large 
          cruise passenger vessels, the first to be built in the United 
          States in 50 years.

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   Reduce the percentage of U.S. ports reporting landside 
          impediments to the flow of commerce from 41 percent in 1998 to 
          37 percent in 2001.

Research and Development

   The Federal Government has a role in developing transportation 
technology. Federal research helps build stronger roads and bridges, 
design safer cars, reduce human error in operations, and improve the 
efficiency of existing infrastructure.
   The Department of Transportation's (DOT's) Intelligent Transportation 
Systems (ITS) program is developing and deploying technologies to help 
States and localities improve traffic flow and safety on streets and 
highways. ITS provides cost-effective ways to improve the management of 
our infrastructure, boosting efficiency and capacity. The private 
sector, which works closely with the ITS program, will deploy many of 
the technologies developed jointly with Federal funding.
   The FAA's research, engineering, and development programs help 
improve safety, security, capacity, and efficiency in the National 
Airspace System. For example, the development of improved weather 
forecasting and modeling tools will help reduce delays and prevent 
accidents and injuries caused by aircraft icing and turbulence. In 2001, 
the budget includes work on the impact of fatigue on performance and 
determining the causes of human error that lead to accidents. Work will 
continue on aircraft safety and fire protection methods that explore new 
methods for reducing the risk of aircraft fires and developing new 
inspection techniques to detect flaws in aging aircraft. Security and 
explosive detection systems research will develop machines that process 
baggage more rapidly and provide new technology for passenger and cargo 
screening. Research will continue on reducing aircraft noise and 
emissions.
   The National Aeronautics and Space Administration's (NASA's) Aero-
Space Technology Enterprise funds partnerships with the FAA, the 
Department of Defense (DOD), aircraft manufacturers, and airlines to 
address aviation safety, air traffic, and environmental impact issues 
that are key to the continued growth of the U.S. aviation system.
   Using technology, the Federal Government seeks to balance new 
physical capacity with the operational efficiency and safety of the 
Nation's existing transportation infrastructure. The Administration will 
seek to:
   Increase the number of metropolitan areas with integrated ITS 
          infrastructure from 34 in 1997 to 56 in 2001. In 1998, there 
          were 46 communities with these systems.
   DOT, NASA, DOD, and private industry will work together on research 
to reduce the fatal aviation accident rate for commercial air carriers 
by a factor of five in 10 years (from a 1994-1996 baseline of 0.037 per 
100,000 flight hours). Research will focus on preventing equipment 
malfunctions, reducing human error, and ensuring the separation between 
aircraft and potential hazards.

Regulation of Transportation

  Federal rules greatly influence transportation. In the past two 
decades, economic deregulation of the railroad, airline, and interstate 
and intrastate trucking industries has reduced costs for consumers and 
shippers, while improving service.
   The Federal Government also issues regulations that promote safer, 
cleaner transportation. The regulations--of cars, trucks, ships, trains, 
and airplanes--have substantially cut the number of transportation-
related deaths and injuries, improved the safe handling of hazardous 
materials shipments, and helped reduce the number of oil spills.
   Where regulations are used to meet our transportation safety, 
security, and environmental goals, the government aims for rulemakings 
that are cost-effective and make common sense. For example, in 
establishing security standards for passenger vessels and associated 
terminals, the Coast Guard listened to public comments and tailored the 
rulemaking to be consistent with international standards while giving 
operators the flexibility to customize their plans and choice of 
equipment.


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 Tax Expenditures

  Employees do not pay income taxes on what their employers pay for 
parking and transit passes. These tax expenditures cost the Treasury 
about $2 billion in 2001 and almost $12 billion from 2001 to 2005. To 
finance infrastructure, State and local governments issue tax-exempt 
bonds. The Federal costs in lost revenues are included in the 
calculations for Function 450, ``Community and Regional Development,'' 
and Function 800, ``General Government.''
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