STATEMENT OF
THE HONORABLE NORMAN Y. MINETA
SECRETARY OF TRANSPORTATION
BEFORE THE
COMMITTEE ON APPROPRIATIONS
SUBCOMMITTEE ON TRANSPORTATION, TREASURY,
HOUSING AND URBAN DEVELOPMENT, THE JUDICIARY, DISTRICT OF COLUMBIA, AND INDEPENDENT AGENCIES
UNITED STATES HOUSE OF REPRESENTATIVES
March 7, 2006
Mr. Chairman, Members of the Subcommittee, thank you for the opportunity to appear before you today to discuss the Administration’s fiscal year 2007 budget request for the U.S. Department of Transportation. The President’s request totals $65.6 billion in budgetary resources, which will support major investments in transportation nationwide that are vital to the health of our economy and the American way of life.
Nearly $16 billion, or more than 24 percent, of the total request for the Department will support transportation safety – my top priority. Statistics show our past safety efforts are paying off. Our early estimates show in 2005 the highway fatality rate reached an historic low of 1.43 fatalities per 100 million vehicle-miles traveled. Still, annual highway deaths continue to hover around 43,000 - a number that is still too high.
Our transportation network is the backbone of the strongest and most dynamic economy in the world. The President’s budget request continues record investments in our Nation’s transportation infrastructure, as well as supporting research and technology. At the same time, the budget reflects the recognition that our funding mechanisms are outdated. There is a growing consensus that traditional gasoline taxes and airline ticket taxes are not adequate to the task of supporting 21st Century transportation needs. We must explore new and innovative ways to provide more reliable transportation services while focusing on costs. Consequently, the 2007 budget introduces alternative financing ideas that may provide possible funding options for our resource needs in the future.
SURFACE TRANSPORTATION PROGRAMS
Last summer, the "Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users" (SAFETEA-LU) reauthorized our surface transportation programs through FY 2009, providing a record $286 billion investment and a continued focus on improvements in highway safety. The President's 2007 budget plan for the Federal Highway Administration, the Federal Transit Administration, the Federal Motor Carrier Safety Administration, and the National Highway Traffic Safety Administration reflects the funding envisioned in SAFETEA-LU. The budget provides $815 million for the National Highway Traffic Safety Administration, along with $521 million for the Federal Motor Carrier Safety Administration, to improve safety on our Nation’s highways. The budget also proposes a record $8.9 billion Federal investment in public transportation. This funding for the Federal Transit Administration will help achieve common-sense transit solutions, especially for the elderly, persons with disabilities, and in rural areas where 40 percent of counties have no public transportation.
Even though SAFETEA-LU has just recently passed, we are already thinking about new ways to fund surface transportation programs in the future. That is why the 2007 budget plan proposes a $100 million pilot program to evaluate innovative ways to finance and manage major portions of highway systems. Grants under this pilot program will allow the Federal Government to partner with up to five States that want to test fees, tolls, and other approaches on a broad scale – either statewide or across an urban area and its suburbs. We will see how the public accepts these approaches, how well they raise revenue, and whether they are indeed more effective in reducing traffic congestion. The lessons learned from this pilot program, as well as the work done by the Congressionally created commissions on the future of the Highway Trust Fund, will help inform future decisions on financing surface transportation needs. The timing is important. By the end of the 2007 budget year, only two years will remain before SAFETEA-LU expires.
FEDERAL AVIATION PROGRAMS
Approaching even more quickly is reauthorization of the Federal Aviation Administration (FAA) and the taxes that finance the Aviation Trust Fund, which expire at the end of FY 2007. Currently, our primary funding source for the FAA is tied to the price of an airline ticket. But there is general consensus that our growing aviation system needs a more stable and predictable revenue stream – one that creates a more direct relationship between revenues collected and services provided. Soon, the Bush Administration will propose a reauthorization plan that will include a solid, forward-looking financing proposal for the Aviation Trust Fund.
The President's 2007 budget plan provides $13.7 billion to fund aviation. Of this request, $8.4 billion will address the FAA’s operational needs and support hiring needed safety inspectors and air traffic controllers. The President's budget also includes nearly $2.8 billion for Airport Improvement Program (AIP) grants, which were instrumental in helping restore service last year to several Gulf Coast airports shut down by Hurricanes Katrina and Rita. The 2007 AIP request is sufficient to address construction needs for all currently planned runways.
The demand for air transportation continues to rise, placing more burdens on our current systems. To address future needs, the FAA is partnering with other Federal agencies in planning for the Next Generation Air Transportation System (NGATS). This multi-agency effort is exploring new ways to manage air transportation through the use of modern technology. As a first step, the 2007 budget provides funding for this effort, including $80 million to support FAA's deployment of Automatic Dependent Surveillance-Broadcast (ADS-B). ADS-B will replace current radar systems and provide more accurate surveillance coverage. In addition, the budget provides $24 million for System Wide Information Management, which will make a network-enabled air traffic system possible, improving safety, efficiency, and security. These are the building blocks of the Next Generation initiative, which will transform the way that America flies.
INTERCITY PASSENGER RAIL
The budget also promotes continued transformation of intercity passenger rail in America. In last year’s budget, the Administration demanded reform. America needs a sustainable framework for convenient, high-quality passenger rail service, and over the past year both Amtrak and the Congress have responded. Amtrak developed a strategic reform plan that seeks to restructure the company and introduce route competition. Through the FY 2006 appropriation, Congress included measures to address Amtrak’s money-losing sleeper car and food and beverage services, among other efficiency measures. Together, these reforms will help Amtrak realize meaningful savings this year, and therefore reduce its need for federal subsidies.
In recognition of this progress – and with the expectation that we will see much more by the end of FY 2006 – the President’s FY 2007 budget requests $900 million to help Amtrak make the transition to a new and better model of intercity passenger rail. Of this amount, $500 million will provide for capital needs and maintenance of existing infrastructure, including the Northeast Corridor. The remaining $400 million will fund new "Efficiency Incentive Grants" tied directly to continued progress toward reform. In addition, our plan assumes continuation of the legislative initiative begun in 2006 that would assess fees for capital investment and maintenance costs by transit agencies for their use of the Northeast Corridor. We recognize that this budget will require Amtrak to accelerate its efforts to address its costs, but we believe the recommendations recently made by the Government Accountability Office and the Department of Transportation Inspector General, as well as the company's own strategic plan, provide a roadmap for success. While much work remains to address Amtrak’s serious and well-documented problems, we believe the FY 2007 budget will encourage progress and promote efforts to move to a more sustainable system.
MARITIME PROGRAMS
The President's plan includes $154 million to fully fund the Maritime Administration's Maritime Security Program. This fleet of 60 active, militarily useful vessels manned by U.S. mariners is critical to the support of our troops abroad. The President's budget also includes $62 million for the U.S. Merchant Marine Academy, of which $15 million is for capital investment improvements at the Academy.
RESEARCH, PIPELINES, AND HAZARDOUS MATERIALS SAFETY
Approximately 15 months ago, Congress enacted the Department of Transportation’s reorganization proposal to create the Pipeline and Hazardous Materials Safety Administration (PHMSA) and the Research and Innovative Technology Administration (RITA).
PHMSA is responsible for the safety of almost one-third of all products shipped each year and two-thirds of all energy products consumed. This includes the packaging, shipment, and handling of all hazardous materials by highway, rail, water, and air, as well as the movement of energy products by pipeline. The 2007 budget provides $149 million for PHMSA’s operations, including $75.7 million for pipeline safety, $27.2 million for hazardous materials safety, and $28.2 million for emergency preparedness grants.
RITA has brought new energy and a focus on the Department’s research efforts, and is working to expedite the implementation of cross-cutting, innovative transportation technologies. The President’s 2007 budget request includes $8.2 million in direct funding, plus an additional $27 million from the Highway Trust Fund for the Bureau of Transportation Statistics, to continue these efforts. In addition, RITA will undertake over $300 million in transportation-related research, education, and technology application on a reimbursable basis.
DEPARTMENT OF TRANSPORTATION HEADQUARTERS BUILDING
Finally, I want to highlight the FY 2007 President’s budget request of $59.4 million for the new Department of Transportation headquarters building project. The goal is to complete the consolidation of the Department’s headquarters’ operating functions, excluding the FAA, into a facility at the Southeast Federal Center in FY 2007. The requested funds will cover DOT’s tenant-related costs, including security and telecommunications equipment and the infrastructure to support it. The end result will be a facility that provides modern office technology, enhanced communications, a quality work environment, and updated security systems for more than 5,000 Federal workers.
The President’s budget request reflects a fiscally responsible plan for the Department of Transportation to help America meet its 21st Century transportation needs. To ensure that the Department is exercising sound stewardship over the financial resources entrusted to us, we continue to focus on program performance to maximize efficiency and create a results-oriented Government. Together with the Congress, and with our public- and private-sector partners, we are revolutionizing transportation to keep America moving.
Thank you again for the opportunity to testify today. I look forward to working closely with all of you, and with the entire Congress, as you consider the FY 2007 President’s budget request. I will be pleased to respond to any questions you may have.
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