Hill Heat: Budget Briefing: Transportation Budget Cut, Shifts Funds from Mass Transit to HighwaysScience Policy Legislation Actiontag:www.hillheat.com,2005:TypoTypo2008-02-13T19:47:04-05:00EESIurn:uuid:88e1b5d3-84ce-4df8-a6d9-7f46ca2f11e32008-02-13T19:38:00-05:002008-02-13T19:47:04-05:00Budget Briefing: Transportation Budget Cut, Shifts Funds from Mass Transit to Highways<p>On February 4, 2008, Transportation Secretary Mary Peters released the 2009 fiscal year (FY) budget request for the U.S. Department of Transportation (DOT) to fund construction, maintenance, and operation activities for the nation’s roadways, railways, and air transportation. The proposed <strong>$68.2 billion</strong> total represents a <strong>$2.13 billion decrease</strong> from the <span class="caps">FY 2008</span> appropriations bill enacted in December 2007. Moreover, proposed budget rescission measures totaling $3.89 billion would further reduce the budgetary resources available to <span class="caps">DOT</span> in <span class="caps">FY 2009</span> to <strong>$64.31 billion</strong>.</p>
<p><strong>The Administration is again proposing dramatic cuts in federal support for Amtrak</strong>. Congress appropriated $1.3 billion for Amtrak in <span class="caps">FY 2008</span> with $850 million going to capital and debt service and $475 million to operating subsidies. The Administration’s budget proposes a total of <strong>$800 million</strong>, a <strong>cut of $525 million or 40 percent</strong>. The Administration proposes $525 million for capital and debt service grants and $275 million for “efficiency incentive grants” which would replace direct operating subsidies and give the Secretary of Transportation discretion in how the funds are used.</p>
<p>Other highlights in the Department of Transportation (DOT) budget include:</p>
<ul>
<li><strong>Congestion Mitigation and Air Quality Improvement Program (CMAQ) – $1.8 billion</strong>. <span class="caps">CMAQ</span> supports transportation projects that assist in meeting and maintaining national ambient air quality standards.</li>
<li><strong>Clean Fuels Grant Program – $51 million</strong> to support transit operators in transitioning to cleaner and more efficient buses and fuels, an <strong>increase of $2 million</strong> from $49 million appropriated in <span class="caps">FY 2008</span>.</li>
<li><strong>Transit Planning – $113.5 million</strong> to support the activities of regional planning agencies and states to plan for transit investments, an <strong>increase of $6.5 million</strong> from $107 million appropriated in <span class="caps">FY 2008</span>.</li>
</ul><p>On February 4, 2008, Transportation Secretary Mary Peters released the 2009 fiscal year (FY) budget request for the U.S. Department of Transportation (DOT) to fund construction, maintenance, and operation activities for the nation’s roadways, railways, and air transportation. The proposed <strong>$68.2 billion</strong> total represents a <strong>$2.13 billion decrease</strong> from the <span class="caps">FY 2008</span> appropriations bill enacted in December 2007. Moreover, proposed budget rescission measures totaling $3.89 billion would further reduce the budgetary resources available to <span class="caps">DOT</span> in <span class="caps">FY 2009</span> to <strong>$64.31 billion</strong>.</p>
<p><strong>The Administration is again proposing dramatic cuts in federal support for Amtrak</strong>. Congress appropriated $1.3 billion for Amtrak in <span class="caps">FY 2008</span> with $850 million going to capital and debt service and $475 million to operating subsidies. The Administration’s budget proposes a total of <strong>$800 million</strong>, a <strong>cut of $525 million or 40 percent</strong>. The Administration proposes $525 million for capital and debt service grants and $275 million for “efficiency incentive grants” which would replace direct operating subsidies and give the Secretary of Transportation discretion in how the funds are used.</p>
<p>Other highlights in the Department of Transportation (DOT) budget include:</p>
<ul>
<li><strong>Congestion Mitigation and Air Quality Improvement Program (CMAQ) – $1.8 billion</strong>. <span class="caps">CMAQ</span> supports transportation projects that assist in meeting and maintaining national ambient air quality standards.</li>
<li><strong>Clean Fuels Grant Program – $51 million</strong> to support transit operators in transitioning to cleaner and more efficient buses and fuels, an <strong>increase of $2 million</strong> from $49 million appropriated in <span class="caps">FY 2008</span>.</li>
<li><strong>Transit Planning – $113.5 million</strong> to support the activities of regional planning agencies and states to plan for transit investments, an <strong>increase of $6.5 million</strong> from $107 million appropriated in <span class="caps">FY 2008</span>.</li>
</ul>
<p>The Administration’s proposed budget request includes <strong>$40.1 billion</strong> to fund highways and bridges through the Federal Highway Administration (FHWA), a <strong>$1.1 million decrease</strong> from the $41.2 billion total appropriated to <span class="caps">FHWA</span> for <span class="caps">FY 2008</span>, including the $1 billion supplemental appropriation for bridge repair. The requested amount also is below the $41.2 billion authorized in “SAFETEA-LU” (<em>Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users of 2005</em>).</p>
<p>The proposed budget requests <strong>$10.1 billion</strong> for the <strong>Federal Transit Administration</strong> (FTA) to fund rail and bus transit needs. This represents an increase of $644 million over <span class="caps">FY 2008</span> funding for <span class="caps">FTA</span>, but the amount is <strong>$202 million below</strong> the amount authorized by <span class="caps">SAFETEA</span>-LU.</p>
<p>More significantly, the Administration is proposing to transfer $3.2 billion from the Mass Transit Account to the Highway Account, which is estimated to have a negative balance of $3.2 billion dollars in <span class="caps">FY 2009</span>. The Administration says these funds will be repaid to the Mass Transit Account through provisions in a future transportation authorization law.</p>
<p>Of the $10.1 billion in total spending proposed for <span class="caps">FTA</span> in <span class="caps">FY 2009</span>, the <strong>Formula and Bus Grants</strong> program will receive <strong>$8.3 billion</strong>, which is the amount of obligation limitation authorized by <span class="caps">SAFETEA</span>-LU and is a <strong>$593 million increase</strong> over <span class="caps">FY 2008</span>.</p>
<p>Other major <span class="caps">FTA</span> program accounts are funded from the general fund, not the Highway Trust Fund, and are subject to more budgetary discretion. The largest general fund transit account is the <strong>Capital Investment Grants</strong> program (formerly known as New Starts), which would receive <strong>$1.6 billion</strong> under the proposed budget. This is $51 million above the <span class="caps">FY 2008</span> level but below the $1.8 billion authorized by <span class="caps">SAFETEA</span>-LU for <span class="caps">FY 2009</span>. Overall, the Administration’s budget requests <strong>$202 million less</strong> than the amount authorized by <span class="caps">SAFETEA</span>-LU for general fund transit accounts.</p>
<p><em>For more information contact Jan Mueller, jmueller@eesi.org, 202-662-1883.</em></p>