[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]


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                           9.  TRANSPORTATION

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                           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

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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

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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.

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  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

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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

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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.
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