STATEMENT OF
THE HONORABLE MARY E. PETERS
SECRETARY OF TRANSPORTATION
BEFORE THE
COMMITTEE ON APPROPRIATIONS
SUBCOMMITTEE ON TRANSPORTATION, HOUSING AND URBAN DEVELOPMENT,
AND RELATED AGENCIES
UNITED STATES HOUSE OF REPRESENTATIVES
March 14, 2007
Chairman Olver and Members of the Subcommittee, thank you for the opportunity to appear before you today to discuss the Administration’s fiscal year 2008 budget request for the U.S. Department of Transportation. Transportation lies at the core of the freedom we enjoy as Americans – freedom to go where we want, when we want…freedom to live and work where we choose…and freedom to spend time with our families. Our goal is to deliver a transportation system that frees all of us to make daily decisions confident that we can reach our destinations safely without worrying about how we will get there, or if we can make it on time. To reach that goal, President Bush is requesting $67 billion for America’s transportation network in the next fiscal year including the continuation of funding for the department’s mandatory programs.
For those who fly, the President’s budget includes $14 billion for the Federal Aviation Administration (FAA). The budget includes $175 million to support the transition to a 21st Century satellite-based navigation system that will replace the current dated air traffic control architecture and over $900 million for ongoing capital projects that will also support the move to this Next Generation system. For the flying public, this investment is critical if we are to deploy the state-of-the-art technology that can safely handle dramatic increases in the number and type of aircraft using our skies, without being overwhelmed by congestion.
Technology is critical, but the budget also includes significant resources to hire and train the people that keep the system safe. The fiscal year 2008 budget supports a total of 1,420 new air traffic controllers, which will help replace controllers leaving the system due to retirements and other attrition. Based on our current projections this will result in a net gain of 144 controllers.
Most importantly, the fiscal year 2008 budget provides the framework of the Next Generation Air Transportation System Financing Reform Act, a new proposal that will make flying more convenient for millions of travelers. As air traffic is expected to nearly triple by 2025, our aviation system requires a more reliable and dynamic source of revenue to fund the modern technology required to manage this expanded capacity. The investment in NextGen will allow the FAA to not only handle more aircraft, but also to maintain high levels of safety, reduce flight delays, and cut noise near airports.
From a finance perspective, our proposal replaces the decades-old system of collecting ticket taxes with a stable, cost-based funding program. Based on a combination of user-fees, taxes and general funds, it creates a stronger correlation between what users pay to what it costs the FAA to provide them with air traffic control and other services. The incentives our plan puts in place will make the system more efficient and more responsive to the needs of the aviation community.
Without reforms to help finance increased air traffic control capacity and modernization, we can all expect to spend more time waiting in airports or strapped in an airplane seat, sitting at the end of a runway. We hope that there will be a vigorous debate about the structure of the system, and we look forward to working with the Congress to enact legislation later this year.
For drivers, the budget proposes a record $42 billion, consistent with the funding envisioned in the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU) for highway construction and safety programs.
Building on our safety accomplishments over the last six years, this budget will allow us to target problem areas that contribute to the unacceptably high vehicle fatality rate. The total number of persons killed in passenger vehicles has declined every year since 2002, an accomplishment in which we all can take pride. However, the overall fatality rate actually increased in 2005, due to a rise in motorcycle crashes and pedestrian fatalities. In addition to addressing these important safety issues, the President’s budget funds State incentive grants that counter drunk driving and encourage primary seat belt laws.
Crashes not only cost precious lives, but also precious time for everyone waiting for the road to be cleared and re-opened. So our budget supports aggressive development of “Intelligent Transportation Systems,” which put the latest technologies to work both to help eliminate crashes and to cut congestion. We believe that technology has a central role to play in reducing the growing costs of congestion and system unreliability.
In a recent editorial, USA Today opined that congestion pricing is a “fair and effective idea for fighting gridlock” that helps finance road expansion and encourages public transportation. We are proposing $175 million to support congestion pricing and other elements of the Department’s comprehensive National Strategy to Reduce Congestion announced last year. We hope to target these funds to support some of our most congested cities and explore cutting edge demonstrations of concepts such as congestion pricing, flexible transit systems, real-time traffic information, and improved incident management strategies.
We also propose to accelerate development capacity and operations projects along our most congested trade and travel corridors through our Corridors of the Future program. We must get ahead of freight and travel trends along our most critical corridors to ensure that our interstate system continues to support the country’s economic growth.
Accessible and cost-effective transit projects also help fight congestion, and the budget provides $9.4 billion for transit programs. The President’s budget includes $5.8 billion to help meet the capital replacement, rehabilitation, and refurbishment needs of the existing transit system. Also included is $1.3 billion for major New Starts projects, which provides full funding for eleven commuter rail projects that are currently under construction, as well as proposing new funding for four additional projects. Another $100 million will be used to implement the new Small Starts program by funding all four projects that have been approved into project development.
But even as we make these substantial investments, we realize that a business-as-usual approach to funding these surface transportation programs will not work much longer. There is – and will continue to be – money coming into the Highway Trust Fund from gasoline taxes, and the revenues are growing every year. But so is spending, and at an even faster rate. We are living beyond our means, and we have nearly run through the balances that had built up in the fund.
We continue to be concerned in particular about the solvency of the Highway Account in the Highway Trust Fund. Our projections suggest that spending may outpace receipts before the end of fiscal year 2009. Because we do not want to burden the trust fund further, the budget proposal does not include $631 million for revenue aligned budget authority – or RABA. As we go through this budget process, I pledge to keep the Congress informed of the Administration’s revenue projections, and work closely with you to ensure that we do not outspend our resources.
We are not alone in our concern. In January of this year, the Government Accountability Office (GAO) for the first time added “Financing the Nation’s Transportation System” to its High Risk Series. The GAO recommendation called for a complete reassessment of (a) the federal role in funding, selecting and evaluating transportation investments, (b) mechanisms to seek alternative revenue sources, including private investment, and (c) methods of allocating funds to ensure equity, efficiency, accountability and performance of transportation investments.
Long-term, we do need serious reform of our approaches to both financing and managing our transportation network to win the battle against congestion. As suggested by GAO, we must fully explore the variety of mechanisms available to us to pay for transportation, as well as analyze the relationship between each mechanism and overall system performance. Serious reform must include reform of the legislative process itself. The explosive growth of earmarks in recent years has hit transportation programs especially hard. The law that funds highway, transit, and safety projects had over 6,000 of them, a practice that takes away from the freedom that States have to put the money where it will do the most good. I want to reiterate the President’s call to cut the number and cost of earmarks in half this year – which is vitally important if we are to maintain a transportation network responsive to our customers’ needs.
We also urge action on making needed reforms to the Nation’s Intercity Passenger Rail system. The President’s FY 2008 plan provides a total funding level of $900 million for intercity passenger rail. Included in this total is $100 million for a new matching grant program that will enable State and local governments to direct capital investment towards their top rail priorities.
Our “safety first” priority includes ensuring the safe and dependable transport of hazardous materials throughout the transportation network. The President’s plan provides $75 million for the Pipeline and Hazardous Materials Safety Administration’s pipeline safety programs specifically for this purpose.
Finally, we are requesting $154 million to support a fleet of 60 vessels in the Maritime Security Program – ensuring ships and crews to assist the Department of Defense with mobilization needs. Our support is critical in supporting our military as they give so much to protect our way of life.
Freedom is at the core of our American values. But we lose a little more freedom each time we venture into traffic. This budget proposal takes a big step in helping us get our freedom back.
Thank you for the opportunity to appear before you today. I look forward to working with the Congress and the transportation community to ensure a safe transportation system that helps America break free of stifling congestion.
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