Highway Projects--Extent of Unobligated Balances for		 
Demonstration Projects as of April 30, 2004 (18-AUG-04, 	 
GAO-04-935R).							 
                                                                 
Congress has provided funding for numerous highway demonstration 
projects in legislation authorizing surface transportation	 
programs as well as in annual appropriations acts for the	 
Department of Transportation (DOT). In some cases, the projects  
are identified in the legislation itself. In others, they are	 
identified in committee reports accompanying the legislation.	 
These projects are all designated for specific geographic	 
locations within states and for specific purposes, and funds made
available for them generally remain available for them until	 
expended. This report includes information we provided your staff
on July 14, 2004, on unobligated funds no longer needed that	 
could be rescinded from highway demonstration projects and also  
includes a recommendation to the Secretary of Transportation.	 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-04-935R					        
    ACCNO:   A11818						        
  TITLE:     Highway Projects--Extent of Unobligated Balances for     
Demonstration Projects as of April 30, 2004			 
     DATE:   08/18/2004 
  SUBJECT:   Balances of budget authority			 
	     Federal funds					 
	     Funds management					 
	     Obligated budget balances				 
	     Public roads or highways				 
	     Unobligated budget balances			 

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GAO-04-935R

United States Government Accountability Office Washington, DC 20548

August 18, 2004

The Honorable Richard C. Shelby
Chairman
The Honorable Patty Murray
Ranking Minority Member
Subcommittee on Transportation, Treasury and General Government
Committee on Appropriations
United States Senate

The Honorable Ernest J. Istook
Chairman
The Honorable John W. Olver
Ranking Minority Member
Subcommittee on Transportation, Treasury, and Independent Agencies
Committee on Appropriations
House of Representatives

Subject: Highway Projects-Extent of Unobligated Balances for Demonstration
Projects as of April 30, 2004

Congress has provided funding for numerous highway demonstration projects
in legislation authorizing surface transportation programs as well as in
annual appropriations acts for the Department of Transportation (DOT). In
some cases, the projects are identified in the legislation itself. In
others, they are identified in committee reports accompanying the
legislation. These projects are all designated for specific geographic
locations within states and for specific purposes, and funds made
available for them generally remain available for them until expended.
This report includes information we provided your staff on July 14, 2004,
on unobligated funds no longer needed that could be rescinded from highway
demonstration projects and also includes a recommendation to the Secretary
of Transportation.

Results in Brief

As of April 30, 2004, there were 80 highway demonstration projects with
unobligated balances that were no longer needed by the states constructing
the projects. These projects accounted for about $16.4 million in
unobligated funds. These funds were provided in authorization or
appropriations acts enacted from 1982 through 2000. Table 1 in the
enclosure specifies the following for each of the 39 projects with
unobligated balances over $100 as of April 30, 2004:

o  the state in which the project is located;

o  a brief project description;

o  	the public law and, where appropriate, committee reports identifying
the projects;

o  the budget authority made available;

o  the obligated amounts; and

o  unobligated amounts available for rescission.

We also found that 41 of the 80 projects have very small unobligated
balances of less than $20 each, and we have provided that information
separately to your staff.

The Federal Highway Administration (FHWA) is not routinely identifying
highway demonstration projects with unobligated balances that could be
rescinded. Rather, according to an agency official, FHWA receives regular
requests from GAO, the Department of Transportation's Inspector General
(DOT IG), and other parties to identify unobligated balances. Although the
review excluded demonstration projects, the DOT IG reported in March 2004
that a significant amount of unneeded obligations exists for highway- and
transportation-related grants.1 As a result, the DOT IG recommended, among
other things, that FHWA routinely work with states to identify unneeded
obligations.

Scope and Methodology

To identify highway demonstration projects with unneeded unobligated
balances, we requested that FHWA analyze reports from its Fiscal
Management Information System (FMIS) to identify highway demonstration
projects with unobligated balances and then to verify the information with
state officials to identify those with remaining unobligated balances that
were unneeded. We verified the statutory sources of the projects by
reviewing the relevant statutes and associated reports. We relied on FMIS
to identify the amount of budget authority, as well as obligated and
unobligated amounts for each project, and did not independently verify
this information. To ensure the data in table 1 are correct, FHWA, at our
request, verified the unobligated balances and the status of the
demonstration projects with state departments of transportation;
therefore, we determined the information was sufficiently reliable for our
purposes. We conducted our review from March through June 2004 in
accordance with generally accepted government auditing standards.

1Department of Transportation, Office of Inspector General, Inactive
Obligations-Federal Highway Administration, Fl-2004-039 (Washington, D.C.,
March 31, 2004).

Conclusion

FHWA is not taking action on a regular basis to identify projects with
unobligated balances that could be rescinded; rather, it responds to
requests from outside parties to identify such information. Regularly
tracking this information, sharing it with FHWA division offices and state
transportation officials to identify unneeded unobligated balances, and
submitting it to Congress could result in more timely rescissions of
unobligated balances that the states no longer need, freeing funds for
other purposes.

Recommendation for Executive Action

We recommend that the Secretary of Transportation direct the
Administrator, Federal Highway Administration, to regularly compile a list
of highway demonstration projects that have unneeded, unobligated balances
available for rescission.

Agency Comments

We provided DOT, including officials from the Office of Infrastructure,
Federal Highway Administration, with a draft of this report for review and
comment. DOT officials generally agreed with the findings and
recommendation in this report and provided technical comments, which we
incorporated, as appropriate.

We are sending copies of this report to the Secretary of Transportation;
the
Administrator, Federal Highway Administration; the Senate Committee on
Environment and Public Works; and the House Committee on Transportation
and
Infrastructure. The report will also be available on GAO's Web site at
http://www.gao.gov.

If you have any questions or need assistance, please contact me at (202)
512-2834 or
Catherine Colwell at (312) 220-7655. Other key contributors to this report
were Ray
Sendejas, Kimberly Berry, and Stacey Thompson.

JayEtta Z. Hecker
Director, Physical Infrastructure Issues

Enclosure

Enclosure

Table 1: Summary of 39 Demonstration Projects with Unobligated Balances
over $100 Available for Rescission as of April 30, 2004

State                        Public law Budget         Obligations  Unobligated  
            Project description            authority                     balance    
                                 TEA-21a                                            
            Extend Highway 41      (PL     $5,638,047.00 $5,159,942.00  $478,105.00
            in Madera County     105-178)                              
            Upgrade access road TEA-21 (PL    500,000.00    497,966.60     2,033.40 
            to Mare Island       105-178)                              
California   Conduct planning,                                                      
                preliminary                                            
             engineering, and   TEA-21 (PL                             
            design for Etiwanda  105-178)   1,537,649.00          0.00 1,537,649.00
             Avenue/Interstate                                         
            10 interchange, San                                        
             Bernardino County                                         
                 Construct      TEA-21 (PL                                          
 Colorado    alternative truck   105-178)   4,305,417.00  4,199,999.00   105,418.00
             route in Montrose                                         
             Implement Trinity                                                      
             College Area road  TEA-21 (PL  5,235,694.00  4,791,708.00   443,986.00
               improvements,     105-178)                              
                 Hartford                                              
            Construct overlook  TEA-21 (PL                                          
Connecticut and access to        105-178)   2,367,980.00  2,167,176.00   200,804.00
            Niantic Bay                                                
            Pedestrian/disabled                                                     
            access improvements TEA-21 (PL    512,550.00    469,086.00    43,464.00
            at Mark Twain House  105-178)                              
            Historic Site                                              
                State Route     STURAAb                                             
             46A/Interstate 4   (PL         6,980,748.00  6,682,377.00   298,371.00
               interchange,     100-17)                                
                  Sanford                                              
             Highway Capacity   PL 101-516                                          
             Improvement Demo     (1990)    2,599,978.00  2,593,013.00     6,965.00
                 U.S. 231                                              
  Florida   Interchange at U.S. ISTEAc (PL                                          
            301 and University   102-240)   2,341,029.00  1,903,013.00   438,016.00
             Parkway, Sarasota                                         
              Engineering of                                                        
             improvements for                                          
               State Route 3    ISTEA (PL     156,069.00     19,095.00   136,974.00
            between State Route  102-240)                              
            520 and State Route                                        
            528, Brevard County                                        
            Railroad relocation                                                     
            demonstration                                              
            project, overpass   ISTEA (PL   7,430,028.00          0.00 7,430,028.00
            at 15th Street and   102-240)                              
            Greene Street,                                             
            Augusta                                                    
                 Peachtree                                                          
  Georgia       Industrial      STURAA (PL 19,944,994.00 19,201,053.78   743,940.22
            Boulevard, Atlanta   100-17)                               
            Transportation                                                          
            improvements for                                           
            1996 Olympics and   ISTEA (PL                              
            ITS traffic          102-240)  56,672,402.00 56,668,432.80     3,969.20
            management system,                                         
            Atlanta (See PL                                            
            10459 Sect 335)                                            
                                PL 102-143                                          
            Improvements to     (1991),                                
Iowa     Fifth and Sixth     House       7,900,000.00  7,718,006.48   181,993.52
            Streets, Waterloo   Conference                             
                                Report                                 
                                102243                                 
                                PL 103-331                                          
            Interstate 70/110th (1994),                                
  Kansas    Street interchange, House       3,846,400.00  3,535,457.10   310,942.90
                Kansas City     Conference                             
                                Report                                 
                                103752                                 

             Conduct                                                               
             feasibility study                                        
  Kentucky   for Northern      TEA-21 (PL    512,551.00    383,061.61   129,489.39
             Kentucky High      105-178)                              
             Priority Corridor                                        
             (Interstate 74)                                          
Maine     Brunswick-Topsham ISTEA (PL  10,242,001.00 10,148,004.87    93,996.13 
                  Bypass        102-240)                              
                  Upgrade      TEA-21 (PL                                          
Mississippi  Alva-Stage Road,   105-178)   1,153,237.00          0.00 1,153,237.00
             Montgomery County                                        
                Route 17/4     ISTEA (PL                                           
 New Jersey     Interchange     102-240)   9,559,943.00  9,508,099.06    51,843.94
             Project, Paramus                                         
                               PL 102-388                                          
             Route 21 viaduct  (1992),                                
 New Jersey  "NJ Transit Br"   House       2,700,000.00  2,695,000.00     5,000.00
             Acquisition,      Conference                             
             Newark            Report                                 
                               102924                                 
              Perth Amboy and                                                      
                Woodbridge                                            
              Township: Study  ISTEA (PL                              
                  whether       102-240)   2,438,571.00  2,401,071.36    37,499.64
             additional river                                         
                 crossings                                            
                 required                                             
             Construct road                                                        
             from the Military TEA-21 (PL                             
 New Jersey  Ocean Terminal to  105-178)   3,075,299.00  3,061,663.00    13,636.00
             the Port Jersey                                          
             Pier, Bayonne                                            
             Improvements to                                                       
             County Route 605                                         
             in Delaware           PL                                 
             Township and West  106-346,   1,197,360.00  1,163,977.57    33,382.43
             Amwell Township,   Sec. 378                              
             Hunterdon County,                                        
             New Jersey                                               
             Upgrade one                                                           
             warning device on TEA-21 (PL                             
    Ohio     the rail line      105-178)      76,882.00     74,800.00     2,082.00
             from Marion to                                           
             Ridgeway                                                 
             Design,                                                               
             right-of-way                                             
             acquisition, and                                         
             construction of                                          
             the Ferry Street                                         
             Bridge, including                                        
             pedestrian,                                              
             bicycle, and                                             
             vehicle approach                                         
             roadways,         STURAA (PL                             
             intersections,     100-17)    1,994,499.00  1,985,630.32     8,868.68
             signalization,                                           
             and structural                                           
             bridge changes,                                          
             and related                                              
             structures                                               
             between East                                             
Oregon    Broadway and                                             
             Oakway Road,                                             
             Eugene. (See PL                                          
             10459 Sect 330)                                          
             Upgrade                                                               
             Interstate 5,     ISTEA (PL  13,851,086.00 13,825,580.60    25,505.40
             Salem              102-240)                              
             Upgrade access                                                        
             road and related  TEA-21 (PL                             
             facilities to      105-178)   1,537,648.00          0.00 1,537,648.00
             port of Port                                             
             Orford                                                   
             Construct bike                                                        
             path between Main                                        
             Street/Highway 99 TEA-21 (PL                             
             in Cottage Grove   105-178)     235,773.00          0.00   235,773.00
             to Row River                                             
             Trail, Cottage                                           
             Grove                                                    
             Widen and extend                                                      
             Chestnut Avenue   ISTEA (PL   6,945,051.00  6,940,000.00     5,051.00
             from Altoona to    102-240)                              
             Juniata.                                                 
Pennsylvania Construct State                                                       
             Route 3019 over   TEA-21 (PL                             
             Great Trough       105-178)     384,413.00    375,000.00     9,413.00
             Creek in                                                 
             Huntingdon County                                        
             Upgrade two                                                           
             sections of U.S.  TEA-21 (PL  1,153,237.00  1,148,676.57     4,560.43
             6 in Tioga         105-178)                              

                County                                         
            Install traffic                                                   
            signal upgrade   TEA-21                            
             in Clearfield    (PL      384,413.00   375,000.00       9,413.00
              Borough in    105-178)                           
              Clearfield                                       
                County                                         
            Reconstruct the                                                   
             Interstate 81   TEA-21                            
             Davis Street     (PL    7,175,696.00 7,175,595.00         101.00
            interchange in  105-178)                           
              Lackawanna                                       
            Historic rehab                                                    
            of Albion        ISTEA                             
    Rhode   Bridge and        (PL    1,950,857.00 1,838,962.20     111,894.80
Island   Albion Trench   102-240)                           
            Bridge, Lincoln                                    
            and Cumberland                                     
            Access road in   STURAA                                           
            Clarksville and   (PL    3,988,999.00 3,885,812.75     103,186.25
             Fort Campbell  100-17)                            
            Study and                                                         
            construct a                                        
            bicycle system                                     
            to serve as an                                     
            alternative                                        
  Tennessee form of                                            
            commuter         ISTEA                             
            transportation,   (PL      390,172.00    36,000.00     354,172.00
            reduce air      102-240)                           
            pollution, and                                     
            enhance                                            
            recreation,                                        
            Murfreesboro                                       
            (see PL 102-338                                    
            Section 378)                                       
            Minimum                                                           
            allocation for                                     
            any eligible                                       
            title 23                                           
            project: AK,                                       
            AZ, CO, CT, DC,                                    
            DE, HI, MT, NE,                                    
            NH, OK, OR, PQ,                                    
            RI, UT, VT, WA,                                    
            WI, WY. Note     STURAA                            
    Utah    UT001 took        (PL    4,760,508.85 4,755,210.50       5,298.35
            $1,447,909 from 100-17)                            
            these funds.                                       
            [Rescinded $154                                    
            ($96 of 308                                        
            funds and $58                                      
            of 309 funds)                                      
            on 1/10/2000 as                                    
            part of PL                                         
            103-211                                            
            rescission]                                        
            Preliminary                                                       
            engineering,                                       
    West    design and       TEA-21                            
  Virginia  construction of   (PL    2,050,199.00 1,936,000.00     114,199.00
            the Orgas to    105-178)                           
            Chelayn Road,                                      
            Boone County                                       
    Total                                                      $16,407,908.88 

Source: GAO analysis of FHWA data. aTransportation Equity Act for the 21st
Century.

bSurface Transportation and Uniform Relocation Assistance Act of 1987.

cIntermodal Surface Transportation Efficiency Act of 1991.

                                    (544086)

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