    [Economic Outlook, Highlights from FY 1994 to FY 2001, FY 2002 Baseline Projections]
    [III. Major Functions of the Federal Government]
    [9.  Transportation]
    [From the U.S. Government Printing Office, www.gpo.gov]

    [[Page 115]]

                               9.  TRANSPORTATION

      ----------------------------------------------------------------------

                               Table 9-1.  Federal Resources in Support of Transportation
                                              (Dollar amounts in millions)
    ----------------------------------------------------------------------------------------------------------------
                                                                                                            Percent
                                    Function 400                                     1993        2001       Change:
                                                                                    Actual     Estimate    1993-2001
    ----------------------------------------------------------------------------------------------------------------
    Spending:
      Discretionary budget authority............................................     13,973      19,058         36%
      Obligation limitation.....................................................     20,391      38,475         89%
      Mandatory outlays.........................................................      1,746       2,169         24%
    Credit Activity:
       Direct loan disbursements................................................         34         669          NA
       Guaranteed loans.........................................................  ..........        546          NA
    Tax expenditures............................................................      1,815       2,220         22%
    ----------------------------------------------------------------------------------------------------------------
    NA = Not applicable.

      ----------------------------------------------------------------------
      Effective and safe transportation is an indispensable component of our
    economy and society. The Nation's prosperity and growing standard of
    living over the past eight years is due in no small part to the growing
    strength of our transportation system and the policies that have
    supported it. Our system is now safer, more accessible, and better
    prepared to meet the challenges and opportunities presented by economic
    success, technological innovation, and environmental preservation needs.
    The Clinton-Gore Administration has provided a strong, effective
    foundation on which to shape the transportation system in the 21st
    Century.
      The Federal Government funded transportation programs at $37 billion
    in 1993. Over the past eight years, transportation funding increased by
    $22 billion, or 59 percent. Funding for roads, bridges, transit, and
    railroads has increased by 75 percent, and for aviation, 42 percent.
    Funding for the safety, security, and efficiency of our Nation's
    waterways has risen 14 percent. These increases were secured
    particularly because of bipartisan efforts to enact highway and aviation
    reauthorization laws. The Transportation Equity Act for the 21st Century
    (TEA-21) and the Ford Aviation Investment and Reform Act for the 21st
    Century (AIR-21) are laws that will ensure increasing transportation
    resources as needs continue to grow.
      Through transportation investments, the Administration has positively
    influenced transportation safety, mobility, economic growth, the human
    and natural environment, and national security. These strategic areas
    have been the focus of the Department of Transportation's (DOT) multi-
    year Strategic Plan and annual Performance Plans in managing for
    results. DOT's 1999 performance report showed that the Department met or
    saw positive trends in 77 percent of its performance goals.

    Safer Operations

      Improving transportation safety has been the number one transportation
    objective of this Administration. Highway fatality and injury rates have
    been pushed to all time lows, even with an increasing amount of traffic.
    Seat belt use is up and the percent of highway fatalities that are
    alcohol-related is down. If the highway fatality rate of 1992 had held
    steady, instead of declining as it has, approximately 4,000 more people
    would have died last year. The commercial aviation fatal accident rate
    has declined from the beginning of the decade. Recreational boating
    fatalities have declined despite a

    [[Page 116]]

    steady increase in the number of boats on the water. The rail-related
    fatality rate has fallen significantly since 1993.

       Highways: The Administration has strengthened Federal programs that
    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 resulting medical costs.
    These partnerships have yielded results--in 1999, for example, the
    Nation's safety belt use rate was 19 percent higher than in 1991.

      Alcohol related highway fatalities in 1999 represented 38 percent of
    all highway deaths--more than a 12-percent reduction from the 1993
    level. Success in reducing alcohol related deaths was recently
    reinforced by securing a .08 Blood Alcohol Content sanction that will
    encourage States to adopt this stronger threshold standard for drunk
    driving. The .08 standard is 20 percent more stringent than the prior
    .10 Blood Alcohol Content standard.
      Overall, highway-related fatalities have reached record lows. In 1993,
    the rate of highway-related fatalities and injuries per 100 million
    vehicle miles traveled was 1.7 for fatalities and 137 for injuries. In
    1999, the fatality rate had fallen to 1.5 and the injury rate was 120.
    (See Chart 9-1.)
      The Administration has laid a strong foundation for further
    improvements in road safety. The National Highway Traffic and Safety
    Administration issued a final rule aimed at making child safety seat
    restraint systems safer and easier for parents. Future motor vehicles
    will include child restraint systems that are standardized and
    independent of vehicle seat belts.
      Improving the safety of commercial trucking has also been a key safety
    focus. The newly-established Federal Motor Carrier Safety Administration
    (FMCSA), created in 1999 with

    [[Page 117]]

    bipartisan support, is increasing motor carrier enforcement, improving
    data, and expanding roadside inspections. States are now receiving
    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 commercial motor vehicle and
    driver safety, helps coordinate law enforcement activities, and aligns
    interstate trucking safety requirements.
      FMCSA is currently engaged in dialogue with interested parties and the
    public regarding proposed changes to its motor carrier hours-of-service
    regulation. Proposed stronger rules based on the latest scientific data
    on driver fatigue were developed and promoted by the Administration.

      Transit: The Federal Transit Administration has focused resources on
    safety and security technologies, establishing a compliance audit
    program, and providing training and technical assistance to help transit
    agencies increase the safety and security of their riders and employees.
    In 1993, the rate of transit-related fatalities and injuries per 100
    million passenger miles traveled was 0.61 and 129, respectively. By
    1999, the fatality rate had fallen to 0.53, and the injury rate to 115.
      Aviation: The Federal Government's most visible transportation safety
    function is air traffic control and navigation. The Federal Aviation
    Administration (FAA) handles over two flights a second, moving 1.8
    million passengers safely each day. In 2000, the FAA performed over
    293,000 aviation safety inspections.
      The Administration devoted considerable attention to improving
    aviation safety over the last eight years. The White House Commission on
    Aviation Safety and Security produced a comprehensive set of policy,
    regulatory, and research-based recommendations aimed at improving the
    aviation system over the long term. Most of these recommendations have
    been implemented by the Administration, such as the development and
    dissemination of improved aviation safety data, development and
    deployment of explosives and weapons detection technology, and expanded
    research into aging aircraft.
      In addition, FAA has significantly expanded the safety inspector
    workforce to meet the demands of growing air traffic. Since 1993, the
    FAA has added 681 safety inspectors to its workforce. FAA inspectors are
    also better equipped with the skills and technology needed to identify
    safety issues, and have that information better disseminated to assess
    trends and make more informed, risk-mitigating decisions.
      Efforts to improve aviation safety have yielded results. The
    commercial aviation fatal accident rate has fallen by 47 percent since
    1992.

      Waterways: The Coast Guard also plays a key safety role on our
    waterways. In an average year, through its search and rescue operations,
    the Coast Guard saves thousands of lives and approximately $2.5 billion
    dollars in property. In addition, the Coast Guard 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.

      A key measure of the Administration's success in waterway safety is
    the reduction in the number of recreational boating fatalities. From
    1993 through 1999, recreational boating fatalities have fallen even
    though the number of boats has increased. (See Chart 9-2.)

      Railroads: The Federal Railroad Administration has improved railroad
    safety, in particular by strengthening the Safety Assurance and
    Compliance program. The program brings together rail labor, management
    and the Federal Government to determine root safety problems. From 1993
    through 1999, the railroad-related fatality rate fell by 37 percent.

    Effective Infrastructure and Efficiency Investment

      In 1999, the U.S. transportation system served more than 260 million
    people and six million businesses. It supported 4.6 trillion passenger-
    miles and 3.9 trillion cargo ton-miles. The Administration pursued
    policies

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    over the last eight years aimed at maintaining and improving the
    condition of the system to support this tremendous volume, while at the
    same time advancing the quality, efficiency, and the intermodal
    character of the Nation's infrastructure. Federal investments have
    ensured that the Nation will meet commerce transportation needs and
    ultimately advance economic growth and international competitiveness
    through improved economic efficiency.

      Innovative Financing: The Administration implemented a number of new
    transportation 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 over 200 projects, representing a total capital
    investment of $24 billion. For example, the new Transportation
    Infrastructure Finance and Innovation Act (TIFIA) program provides
    Federal credit assistance to major transportation investments of
    critical national importance, such as: intermodal facilities; bridges;
    highway trade corridors; and transit and passenger rail facilities with
    regional and national benefits. In 2000, $37 million of TIFIA funding
    supported $638 million in credit assistance.
      The Administration also implemented other innovative financing tools
    during the past eight years, such as Grant Anticipation Revenue Vehicle
    bonds (GARVEEs) and the Railroad Rehabilitation and Improvement
    Financing program (RRIF). With GARVEE bonds, a State can pledge its
    future Federal highway apportionments as a source of revenue for
    repayment of the bonds. Five States have issued highway GARVEE bonds
    totaling $942 million. A final rule implementing the RRIF program, which
    can provide up to $3.5 billion in loans and loan guarantees for rail
    projects, became effective in September of 2000.

    [[Page 119]]

      Highways and Bridges: More than 957,000 miles of roads and bridges are
    eligible for Federal-aid Highway support, including the National Highway
    System and Federal lands roads. The Administration has recognized and
    supported a strong partnership between the Federal, State, and local
    governments in improving our road and bridge infrastructure to achieve
    national transportation goals. In 1999, State and local governments
    provided 63 percent of highway and bridge infrastructure spending, most
    of which is generated through their own fuel and vehicle taxes. From
    1993 through 2001, the Administration will provide $211 billion to
    maintain and expand roads and bridges with funding from Federal motor
    fuels taxes. Annual investments of these dollars have risen
    significantly. The Administration utilized nearly $26 billion of motor
    fuel taxes in 2000 for highways and bridges compared to $18 billion in
    1993. As a result, almost 5,000 miles of the National Highway System
    that were in unacceptable condition in 1993 are now in acceptable
    condition, and the percentage of our Nation's bridges deemed
    structurally deficient has fallen.
      Transit: As with highways, the Federal Government assists State and
    local governments to improve mass transit. A portion of the Federal
    motor fuels tax 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 $3.5 billion
    a year on transit infrastructure and equipment above funding provided by
    the Federal Government.
      The Administration has led efforts to increase investments in the
    Nation's transit systems. In 2000, the Federal Transit Administration
    spent $5.6 billion on improving and expanding transit infrastructure.
    This compares with $2.8 billion in 1993. The Federal Government's role
    has been important in financing new urban bus and rail transit systems,
    as well as rural bus and van networks. Millions of Americans choose
    transit for their daily commute, easing roadway congestion and reducing
    air pollution. Others depend on public transportation due to age,
    disability, or income. (See Chart 9-3.)
      Our leadership in transit has expanded economic opportunity. The Job
    Access and Reverse Commute program is assisting welfare recipients and
    low income individuals reach employment opportunities. By the end of
    1999, 1,742 new employment sites had been reached, giving dedicated
    workers access to an unprecedented number of jobs nationwide. Overall,
    transit ridership has grown significantly in recent years, from 36.2
    billion passenger miles in 1993 to 43.1 billion in 1999. Nearly 300
    miles of new rail transit service have been opened since 1993, and
    another 150 miles is under construction or has a Federal commitment for
    construction. The new lines under development will serve over 500,000
    riders per day.

      Passenger Rail: Rail service plays an important role in improving
    transportation mobility, and it offers an environmentally sound
    alternative to adding highway capacity to congested corridors. The
    Administration has worked with Amtrak to improve its financial position
    to ensure intercity passenger rail service is an integral part of our
    intermodal transportation system. Both the Taxpayer Relief Act of 1997
    and the Amtrak Reform and Accountability Act of 1997 have provided
    critical resources to address its capital needs and place Amtrak on a
    glide path to self-sufficiency.
      Amtrak has substantially improved its capital infrastructure and the
    quality of its services. Federal funding has been targeted to those
    investments which make good financial sense for the long-term health of
    the company and generate substantial benefits for the general public.
    For example, Amtrak successfully introduced Acela Express high-speed
    rail service along the Northeast Corridor. This service has reduced
    train travel time between Boston and New York by 29 percent. The
    Administration has supported legislation that authorizes Amtrak to issue
    $10 billion in tax credit bonds over ten years for capital improvement
    purposes.
       However, Amtrak faces a number of challenges to its long term
    financial viability. In a recent report to the Congress, the General
    Accounting Office (GAO) concludes that Amtrak will need to continue to
    work

    [[Page 120]]

    to reduce system-wide operating losses, increase labor productivity, and
    improve passenger service. GAO indicates that Amtrak has capital needs
    exceeding $9 billion through 2015. These needs include safety
    improvements on tunnels and bridges in the Northeast Corridor.

      Aviation and Airports: The Administration has made important progress
    in modernizing our aviation infrastructure through the FAA: modern
    workstations for air traffic controllers are being deployed;
    technologies to improve separation of aircraft are substantially
    increasing aviation capacity; and, efficiency and safety-enhancing
    global position system (GPS)-based navigation systems are nearing final
    development to reduce dependency on older ground-based systems.
      Progress has also been made in improving the condition and capacity of
    our airports. While the Federal Government contributes a relatively
    small portion of money spent on airport infrastructure, Federal
    investment has nevertheless helped improve airport runway conditions
    since 1993, and therefore access and capacity. Airport Improvement
    Program funds augment other airport funding sources, such as bond
    proceeds, State and local grants, and passenger facility charges, which
    airports are permitted to assess on passengers. With 98 percent of the
    U.S. population living within 20 miles of a public-use airport, most
    citizens now have excellent access to air transportation.
      To ensure the effective and efficient use of aviation resources, the
    Administration led efforts to implement acquisition, financial and
    personnel reforms at the FAA. Procurement reforms have enabled the FAA
    to pre-screen contractors to ensure that firms have the capabilities and
    experience to deliver technology systems that improve air traffic
    control. Personnel reform has resulted in a pay-for-performance system
    focusing employees on key agency goals. Financial reform

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    is helping the agency better understand its costs.
      While these reforms are critical, they do not go far enough to address
    more fundamental problems in the management of our air traffic control
    system. This past December, the Administration announced the creation of
    a performance-based organization, or ``PBO'', within the FAA to focus
    solely on the efficient operation of the air traffic control system. The
    PBO will be run by a Chief Operating Officer, with oversight provided by
    an Air Traffic Services Subcommittee of the FAA's Management Advisory
    Council. The Administration also directed DOT to assess impediments to
    market mechanisms for promoting more effective and efficient use of
    airport runway capacity, such as congestion pricing. Market mechanisms
    must also encourage better use of FAA services and efficient agency
    management, and the Administration called on the Congress to replace
    ticket taxes with cost-based fees on commercial users for FAA services.
      The Administration has succeeded in improving aviation access and
    economic growth through ``open skies'' agreements with other nations.
    Through the efforts of the DOT, the United States has open skies
    agreements with over 50 countries. More of our citizens now have
    improved access to the world, at a lower cost.

      National Security and Maritime Transportation: A commitment to marine
    transportation infrastructure has led to improved national
    competitiveness and strengthened our national security. Due to steps
    taken by the Maritime Administration and the Military Traffic Management
    Command, the percentage of DOD-designated ports able to meet DOD
    readiness requirements increased from 57 percent in 1997 to 93 percent
    in 1999. Federal loan guarantees issued by the Maritime Administration
    have made it easier to build and renovate vessels in U.S. shipyards. In
    1999, 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. 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.
      Investments in the Coast Guard have made a difference in our Nation's
    war on drugs. The Coast Guard has invested in measures to improve its
    military readiness through fleet modernization, increased maintenance
    resources, improved logistics and expanded training levels. As a result,
    the maritime cocaine seizure rate has doubled since 1993. The Coast
    Guard has made the largest annual drug seizure in its history in each of
    the past two years--about 51 and 57 metric tons in 1999 and 2000,
    respectively. Nonetheless, the Coast Guard's fleet is aging and will
    require additional investment in order to maintain its effectiveness.

    Expanded Transportation Access

      Progress has also been made in areas of the country, such as
    Appalachia and the Mississippi Delta region, where accessibility is
    limited. Between 1993 and 1999, 349 miles of the Appalachian Development
    Highway System were built, bringing the total miles completed to 80
    percent of the goals. In the Mississippi Delta region, $2.1 billion in
    discretionary grants have been made available since 1993 to facilitate
    investment in highways, transit and job access.
      The Administration has also worked to improve transportation along
    critical borders and corridors where traffic is rapidly growing due to
    expanded trade in the Western Hemisphere. Since 1993, over $360 million
    has been provided through the Borders and Corridors Program for the
    planning, design, construction and related activities of projects that
    develop the 43 corridors identified by the Congress, and for other
    significant corridors and projects along the Canadian and Mexican
    borders.

    Improved Environmental Protection

      Undesirable environmental consequences can be an unfortunate by-
    product of our transportation system. The Administration has sought to
    avoid or mitigate transportation's adverse effects on the environment.
    Reducing air pollution from vehicles has been a focal point. Since 1993,
    programs such as Conges

    [[Page 122]]

    tion Mitigation and Air Quality Improvement have contributed to reducing
    vehicular emissions. Minimizing water pollution through the prevention
    of oil spills has also been a priority. More than half of the oil used
    in the United States is imported, most of it arrives by tanker. Since
    1993, the Coast Guard has helped reduce the amount of oil spilled into
    the Nation's coastal waters by over 50 percent.
      Aircraft noise also has substantially decreased in recent years.
    Progress has been achieved through mandated replacement of older
    aircraft with newer, quieter models, and phase-out of older, noisier
    airplanes is now complete. Compared with 1993, about two-thirds fewer
    people are exposed to high levels of aircraft noise around our Nation's
    airports.
      Significant progress has also been made in the protection of our
    Nation's wetlands. Occasionally, transportation projects, particularly
    the construction of highway bridges, affect wetlands. This
    Administration has avoided adversely affecting wetlands wherever
    possible. When impacts were unavoidable, wetlands were replicated at a
    ratio of 2.3 acres per acre affected.

    Successful Research, Development and Technology

      The Administration has invested heavily in important transportation
    research through the Department of Transportation and NASA to enable the
    continual evolution of our transportation system into one that is
    growing in efficiency, safety, and environmental compatibility.
      Investments in Intelligent Transportation Systems (ITS) are improving
    mobility, productivity and safety. For example, the installation of ramp
    meters has increased freeway capacity in Seattle by 10 percent and
    reduced accident rates on freeways in Minneapolis by over 20 percent.
    Automatic vehicle location technology on buses in Baltimore improved on-
    time performance by 23 percent. Incorporating ITS into new roadways
    saves an estimated 35 percent of the cost of providing the same capacity
    through traditional highway construction alone.
      The Administration has sought to develop cutting-edge technologies to
    take advantage of the transportation opportunities of the GPS. The Coast
    Guard developed and implemented the Differential GPS system used by
    mariners worldwide, and began expanding the system for nationwide use.
    Similarly, FAA developed the Wide-Area Augmentation System, which
    improves the accuracy and integrity of the GPS signal for aviation and
    other uses.
      Through the National Research Plan for Aviation Safety, Security,
    Efficiency, and Environmental Compatibility, NASA and the FAA coordinate
    closely on the development of new technologies to meet the challenges of
    the Nation's growing air system. For example, NASA has developed
    technologies that could safely increase airport runway capacity by five
    percent. The FAA is using a NASA-developed system to improve aircraft
    sequencing at one of the world's busiest airports, Dallas-Fort Worth,
    preventing an estimated $9 million annually in aircraft delay costs.
    Another NASA system is improving the efficiency of ground operations at
    six high-volume airports.
      This Administration has strongly supported the Advanced Vehicle
    Technologies Program, which combines the best in transportation
    technologies and innovative program management to produce new vehicles,
    components, and infrastructure to respond to medium- and heavy-duty
    transportation needs, performance requirements, and environmental
    standards. This program improves the overall energy efficiency and U.S.
    competitiveness while reducing emissions and transportation dependence
    on petroleum. Since 1993, this public/private partnership initiated over
    300 projects with 450 companies and helped develop technologies such as
    hybrid electric transmissions, auxiliary power units and motors, and
    advanced battery and charger systems.