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Transportation

PROGRAMS FUNDED BELOW SAFETEA-LU 'GUARANTEES'
Transit Account Raided to Fill Highway Trust Fund Gap

The Department of Transportation was among the hardest hit in the FY 2009 budget. The budget calls for DOT to receive $57.1 billion for FY 2009 -- about a 10% cut from current funding levels. The rationale for the decrease is lower than anticipated gas tax receipts flowing into the trust fund. To address the projected shortfall, the budget cuts highway funding by more the 4 percent and would allow money to be moved from the mass-transit account to help maintain the highway trust fund.

Federal Highway Administration (FHWA) funding is reduced below the levels established in SAFETEA-LU by roughly $1.8 billion under the authorized obligation limit. The reduction comes from a projected negative Revenue Aligned Budget Authority (RABA) of $1 billion -- which allows for reductions in funding based on diminished gas tax receipts -- and $800 million in rescissions from unobligated project balances.

The administration estimates that it will need to take about $3.3 billion from the mass transit accounts in FY 2009. According to the American Association of State Highway and Transportation Officials, the deficit could reach $12 billion unless action is taken to shore up the trust fund. Lower than authorized funding levels and allowing the Highway Trust Fund to dip into the Mass Transit Account will have a detrimental impact on the future of the US transportation system. Absent new funding, the federal transit program could not be funded in 2010 at even the current level.

The proposed budget would fall short of the funding levels authorized in the 2005 transportation authorization legislation (SAFETEA- LU). Secretary Peters said that the department will still spend the authorized levels over the life of the law. The administration is also asking Congress for $175 million for a program to combat highway congestion.

The budget also proposes that 75 percent of funds for discretionary programs be reserved to support critical congestion relief projects. Projects that combine road pricing, transit and technology solutions would be given priority consideration by the department.

Amtrak

Amtrak is again slated for a major cut in funding. Last year Congress provided $1.35 billion for Amtrak. The budget asks for $800 million, an amount insufficient to continue current levels of service.

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