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101 Number 27 |
July 6, 2001 |
Executive Digest
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Congress
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Highway Spending Tops $126 Billion This Year
Total spending for highway
programs by all levels of government is expected to reach $126.2
billion in 2001, according to the latest statistics from the
Federal Highway Administration.
"With the boost in federal funding from TEA-21 and the
substantial program increases enacted in many states, we have
reached an unprecedented level of investment," said John Horsley,
AASHTO Executive Director. "This is enabling state and local
governments to begin to address the critical highway needs across
the nation."
The $126.2 billion spending level is a 17 percent increase over
that of 1998, the first year for which TEA-21 funds were
available. Capital expenditures are expected to increase to $64.8
billion in 2001, accounting for over 51 percent of total highway
expenditures. That represents an increase of $12.5 billion, or
almost 24 percent since 1998. Approximately 75 percent of capital
expenditures, some $48.3 billion, will come from state coffers.
The FHWA reports that 46 percent of state capital funding is
expected to be spent on system preservation. Some 16 percent will
go toward new roads and bridges, and another 31 percent will be
allocated for other capacity improvements. Operational and
safety-related improvements will total 7 percent.
Revenue to Reach $128 billion
Total revenues available for highways are expected to reach
$128 billion in 2001. Highway user fees will bring in $106.2
billion and additional funding will come from general revenue and
other sources. The full report on highway funding is available on
the FHWA web site at http://www.fhwa.dot.gov/. CBO: Future Budget Surplus Increases
Unlikely
After two years of larger
than expected increases, future budget projections to be released
in August will likely show no increase, or even a slight decrease,
in the size of the surplus over the next decade. This trend could
have a major long-term impact on transportation funding, analysts
believe.
During a hearing of the House Budget Committee last week
officials from the Congressional Budget Office and the Office of
Management and Budget hinted that the days of huge increases in
future budgetary surpluses are over. Rather, the August budget
reports will show that there will be no increase in the last
surplus projection of $5.6 trillion over the next decade. There
may even be a slight decrease in that number.
This changing picture of the federal budget surpluses will
likely have a major impact on available spending in federal fiscal
years 1994 and beyond. This could make it more difficult,
observers believe, to maintain the guaranteed spending provisions
that were contained in the Transportation Equity Act for the 21st
Century (TEA-21).
Over the past two years, surplus projections far exceeded
earlier estimates, largely because tax revenues flowing into the
Treasury were larger than expected due to a strong economy. The
recent downturn in the economy, along with the $1.35 trillion tax
cut passed by Congress, will likely bring the surplus down over
the next decade.
Daniel Crippen, Director of the Congressional Budget Office,
told the House panel that the effects of the tax cut will come
into play in fiscal years 2003 and 2004, when Congress runs a risk
of dipping into the Social Security or Medicare trust funds.
More Flexibility Urged for Appropriators
Crippen provided comments before the Budget Committee while
testifying on the future of the Budget Enforcement Act (BEA). The
latest extension of the BEA was passed by Congress in 1997 in the
form of the Balanced Budget Act.
Over the past three years, the spending levels contained in the
Balanced Budget Act have been exceeded by Congress because
budgetary surpluses were realized much earlier than had been
expected, Crippen said. As a result, Congress voted to waive the
caps established in the Act or find other ways to boost
discretionary spending over the caps.
Crippen said that the effectiveness of the BEA has been
compromised by Congress' unwillingness to limit discretionary
spending. "In 1999 and 2000, lawmakers were criticized for
enacting record amounts of emergency spending and for excessively
using advance appropriations, obligation delays, and timing shifts
to appropriate more funds than the caps," Crippen said. "The root
of the problem, however, was the base levels of discretionary
appropriations allowed under those caps. Those levels were not
supported by a consensus of lawmakers."
Crippen recommended providing more flexibility to appropriators
and budgeteers to "adjust spending priorities within (spending)
caps." He said that appropriators are hampered by "sublimits" for
certain categories of spending, such as highways and transit.
"Separate sublimits within overall caps may serve important
policy goals. But lawmakers give up flexibility to meet other
needs within those caps when they carve out separate limits for
certain programs, especially if the sublimits also act as floors
on spending," Crippen maintained. Senate Reorganization Finalized
Before leaving for their
July 4 recess the Senate adopted an organizational resolution that
officially gives Democrats control over the chamber's activities
and committees. The agreement B which adds one Democrat to each
committee - will enable the Senate committees to take action on
nominations and on legislation, including the DOT appropriations
bill.
The June 29 vote on the organization resolution culminated
weeks of negotiations between party leaders, primarily over the
issue of how judicial nominations by the President would be
handled. That issue was quietly settled when Judiciary Committee
Chairman Patrick Leahy (D-VT) and Ranking Member Orrin Hatch
(R-UT) sent a joint letter stating that the nomination process for
Supreme Court nominees would be handled according to historic
precedent.
The adoption of the resolution officially gives Democrats
control over the Senate committees. Under the agreement, in lieu
of removing a Republican member from each committee, an additional
Democrat will be added to the committees, thereby breaking the
former 50/50 split between members.
Over the past two weeks numerous committees held hearings, led
by new Democratic chairs, even though debate continued over
organizational issues. The Senate Appropriations Committee has
already cleared the Interior Appropriations bill, and it is slated
to address the FY 2001 supplemental bill on July 9.
The Washington Report on Transportation reports
that the Senate Transportation Appropriations Subcommittee will
mark up its bill on July 12, and the full committee will likely
consider the bill that same day. Bush Administration Seeks to Restrain
Congressional "Earmarking"
Noting a threefold rise in
the number of congressionally "earmarked" projects since 1995, the
White House budget director has launched a campaign to restrain
the practice, which draws billions of dollars to projects in
federal lawmakers' home districts, the Washington Post
reports.
Mitchell E. Daniels Jr. is embarked on what a senior House
staff member described as a "jihad" against earmarking, which
target spending on such home-district projects as roads, parks,
museums or dams. The Post contends his efforts have caused
some tension between Congressional GOP leaders and the Republican
White House - and longtime staffers close to the Congressional
side of things defend the practice.
"There can be winners and losers, and it is a contact sport,"
said James W. Dyer, clerk and staff director of the House
Appropriations Committee. "But I think both sides come out all
right in the end."
Dyer said having the earmarked degree of congressional input
into the budget is healthy. "I will make a deal with the
administration, that if they do not direct money to politically
popular programs then I will not direct money to politically
popular programs ... We are not the only ones who are picking and
choosing," he said.
Figures compiled by congressional staff show that House members
have requested 18,898 earmarks in the spending bills now moving
through Congress. Approval of them all would cost $279 billion,
about as much as the yearly Pentagon budget.
Daniels suggests earmarks have "gotten out of hand" and move
funds from higher priorities. They also can have the effect of
undercutting states' ability to set financial agendas to cover
their own needs, Daniels said.
Congressman C.W. Bill Young, the Florida Republican who chairs
the House Appropriations Committee, said, "The Constitution
provides that the United States Congress is the appropriating
agency of the federal government. Members of Congress have the
right to offer recommendations to appropriations bills on how
money should be spent."
Lawmakers learn a lot about their constituents' needs when they
go to their districts, Young said. If a federal agency expresses
"a very strong negative" about a proposed earmark, "we won't do
it," he said. Young also said cuts will be made elsewhere in the
budget, if necessary, to meet spending targets.
Daniels - whose efforts against earmarks included knocking out
$84 million in research grants earmarked by legislators in the
agriculture department bill - saw nearly all of them restored by
Congress.
"In all honesty, I don't think we've had much success so far"
curbing the practice, he admitted. Bill Proposed to Encourage Alternative
Fuel Vehicles
Legislation has been
introduced in the House to provide some $200 million in grants to
state and local governments to spur the use of vehicles that
operate on alternative fuels.
The bill, H.R. 2326, was introduced June 27 by Rep. Sherwood
Boehlert (R-NY) who chairs the House Science Committee, and is
expected to be included by the Committee in the energy package on
which it is scheduled to vote on July 11. In a statement Boehlert
said that the bill would be an "important addition" to the
President's energy proposals, and would complement provisions for
tax incentives for alternative fueled vehicles.
Boehlert added, "In the long run, alternative fuel vehicles
will obviously have to succeed in the marketplace entirely on
their own. But the federal government should be doing more to
encourage the development and deployment of alternative vehicles
because there are clear public benefits and the technology will
develop too slowly without incentives."
Under the bill, state or local governments or metropolitan
transit agencies would be eligible to apply for a total of 15
grants for up to five years for the acquisition of
alternative-fuel vehicles, including buses, passenger vehicles,
delivery vehicles, ground support vehicles at airports, or
motorized bicycles used by law enforcement and other government
officials. Smith Introduces Toll-Free Holiday Act
Senator Robert Smith (R-NH)
last week introduced a bill that calls for a freeze on toll
collection on the nation's interstate system during peak holiday
travel periods.
Under Sen. Smith's bill, travelers would not be required to
stop at a tollbooth for any toll highway, bridge, or tunnel on
holidays. The Secretary of Transportation would reimburse states
for lost toll revenue out of the Highway Trust Fund. The
reimbursed funds would only be used debt service or for operation
and maintenance of the toll facility. Small Airports Program Questioned
Trends such as larger
aircraft and regional jet service may spell the demise of the
Essential Air Service Program, as per passenger subsidies exceed
available federal funding.
The EAS program was enacted 23 years ago at the onset of
airline deregulation, in an attempt to ensure that small airports
did not lose service. In 1996 the program was permanently funded
at $50 million, and certain service criteria were established to
limit EAS eligibility. The Administration's budget proposal this
year recommended tightening the criteria still further and funding
part of the program from the Airport Improvement Program. Both the
recommendations were rejected by the House Appropriations
Committee.
In its committee report, however, the committee notes that some
$13 million dollars beyond the $50 million is necessary to
maintain current EAS service. They note that subsidies range from
roughly $39 to as much as $358 per passenger at the 18 airports
that might otherwise have been eliminated from the tighter
criteria.
The committee states that "current trends in the aviation
industry may make it difficult for the EAS program to remain
viable over the long term." The committee has called for an audit
and program evaluation by the General Accounting Office to be
completed by April 1, 2002. United/US Airways Merger Apparently
Dead; Future of US Airways Uncertain
In a joint statement, United
Airlines and US Airways on Monday acknowledged they are
considering terminating a 13-month-long bid to merge, following
earlier news reports quoting United sources as favoring calling
off the $12.3 billion proposed merger.
The proposed combination of the nation's second-largest and
sixth-largest airlines has been the focus of Justice Department
antitrust scrutiny since it was placed on the table. The two
airlines had set an August 1, 2001 deadline for completing the
merger, and if it is called off, United will have to pay US
Airways $50 million, the Washington Post reported.
The Associated Press reported that two key members of the U.S.
Senate, Herb Kohl of Wisconsin and Michael DeWine of Ohio, had
publicly stated they were pleased by the apparent end of the
merger attempt.
Kohl - the chairman of the Senate Antitrust Subcommittee and
DeWine, the panel's ranking member - said ``This merger, if
permitted to occur, would have resulted in less choice and higher
fares for millions of American air travelers.''
However, some analysts suggested United may simply be engaging
in brinksmanship to attempt to get a better price for US Airways.
The apparent end of the proposal prompted speculation about the
future of US Airways, an airline that has faced financial problems
but is the major carrier in numerous markets across the nation. It
has the single largest operation at Reagan National Airport and
industry experts speculated it may be pressed to cut
less-than-profitable routes out of such airports as Dulles
International in Virginia and Baltimore-Washington International
in Baltimore. US Airways also operates a shuttle between Boston,
New York and Washington, DC. NHTSA Study Shows Motorcycle Use, Deaths
are Up
More and larger motorcycles
are on the road in the United States - and motorcycle riders are
involved in fatal crashes in the largest numbers posted in nearly
a decade, the National Highway Traffic Safety Administration says.
An NHTSA study released on Tuesday showed that 2,472 people
died in motorcycle accidents in 1999, the most recent year for
which full statistics are available. That is the largest number
since 1991; the number of motorcycle deaths rose 17 percent
between 1997 and 1999, NHTSA said.
However, NHTSA cannot attribute the rise in deaths to
particular causes, although it does note that more motorcycles are
on U.S. roads - the 4.2 registered in 1999 are 9 percent more than
were registered in 1997. Further, the motorcycles on the road
appear to be larger: in 1990, the average size of a cycle involved
in a fatal was 769 cubic centimeters; in 1999, the average size
was 922 cc.
"Unfortunately, the increase in motorcycle popularity has been
followed by a rise in fatalities," said U.S. Transportation
Secretary Norman Y. Mineta.
According to the NHTSA study, 41 percent of motorcyclists in
fatal crashes were speeding, almost half who died in
single-vehicle crashes were driving under the influence, and
nearly one in six were driving without a valid license.
Most of those killed were between ages 20 and 29, though a
growing contingent of motorcyclists involved in fatal accidents
are over 40.
NHTSA has proposed a safety program to include letting states
determine the best motorcyclist training programs, make new
efforts to encourage helmet use and prevention of drunken
motorcycle riding, teaching car and truck drivers to be aware of
the smaller vehicles, and studying new braking
systems. 511
Will Be "Public Face" of Intelligent Transportation in Coming Years:
Yermack
The new 511 national dialing
code for traveler information will become "the public face" of
intelligent transportation, so it needs to be reliable and
seamless from coast to coast, ITS America's new chairman, Larry
Yermack, said in remarks at the National Press Club.
Yermack, president of PB Farradyne - the Rockville,
Maryland-based ITS arm of Parsons Brinckerhoff - said "I think 511
is really going to help people get route-specific information"
including their corridor, their route, or their transit line B"511
provides access to much more fine-grain information" than people
can currently obtain.
Noting that the Cincinnati and northern Kentucky metro area
launched the nation's first 511 system on June 11, Yermack said
Arizona, Minnesota, Utah and the San Francisco area are expected
to follow suit shortly. Miami, Florida and the Interstate 81
corridor in Virginia are also expected to be on board soon.
511, authorized by the Federal Communication Commission last
year, aims to replace an estimated 300 separate telephone lines
nationwide that provide traveler information to local areas.
Yermack said public agencies and private entities are working
together well to make 511 a reality. "It's not a question of
regulation. It's a question of trying to set reasonable guidelines
that people can adhere to and trying to reach them in a consensus
fashion so everybody feels they have been a part of it." AASHTO is
one of the lead organizations in developing 511 standards. Elwyn
Tinklenberg, commissioner of the Minnesota Department of
Transportation, chairs the Policy Committee of the National 511
Deployment Assistance and Coordination
Program. Parent Company of Greyhound Bus Line Files Restructuring
Bid
Toronto-based Laidlaw, Inc., which operates the Greyhound bus
line and a school bus fleet, has filed for protection from
creditors in both the United States and Canada, the Associated
Press reported.
The firm stated that its filing will not affect operating
divisions such as Greyhound or Laidlaw Transit, which handles its
school-bus operations. The firm stated it has arranged for $200
million in financing from GE Capital; Greyhound Lines Inc. and its
subsidiaries have a separate credit
arrangement. FHWA, FTA to Build National Tunnel Management System
Transportation Secretary
Norman Mineta on Tuesday announced that the Federal Highway
Administration and the Federal Transit Administration are
developing a nationwide tunnel management system for highway and
transit tunnels.
The Tunnel Management System (TMS) is the first-ever
comprehensive undertaking to produce a complete inventory of the
nation's tunnels, with procedures for proper inspection,
record-keeping, maintenance, and rehabilitation.
The system is to be completed in 2002, and the two departments
will publish a guide on the findings. The guide will showcase best
practices from all available sources, including other
organizations that have developed specialized tunnel management
systems. TMS will be made available to all highway and transit
agencies, and "will become an invaluable tool in maintaining and
preserving our nation's tunnel assets," FHWA Deputy Executive
Director Vince Schimmoller said. Monro Named FRA Deputy Administrator
U.S. Department of
Transportation Secretary Norman Mineta on Tuesday appointed
Elizabeth Monro as deputy administrator of the Federal Railroad
Administration.
Monro has 30 years of transportation-related experience. She
most recently served as chief of staff for Congressman Mac
Collins, and prior to that was chief of staff to FRA Administrator
Gilbert Carmichael. Monro also served as special assistant for
aviation policy to former U.S. DOT Secretary Sam Skinner.
Monro holds a bachelor's degree from the University of
Mississippi. Consumer Group Blames Gas Price Spikes on U.S. Industry
Concentration and Manipulation
The Consumer Federation of
America on Monday released a report saying that high gasoline
prices are not the result of the Organization of Petroleum
Exporting Countries' policies, but stem from growing U.S. refiner
and marketer concentration and manipulation.
The organization's study, "Ending the Gasoline Price Spiral:
Consumer Friendly Policies to Stop the Wild Ride," concludes that
a growing industry concentration has allowed refiners and
marketers to decrease capacity for refining and storage. The two
can then withhold supplies in individual markets. The report shows
that between 1994 and 1999, 10 percent of the nation's refineries
and branded gasoline stations were closed; 70 refineries have been
closed within the past 15 years. In that same time frame,
petroleum storage facilities were reduced by 15 percent.
CFA calls on the Bush Administration and Congress to take
action to increase competition and discourage market manipulation
by: increasing refinery capacity and fuel efficiency; increasing
market flexibility; promoting competition by enforcing Department
of Justice merger guidelines; and preventing private actions that
tighten or exploit markets. Crucial New Jersey Highway Gets the
Quickest Possible Fix
Following a fiery truck
wreck that destroyed a bridge on Interstate 80 in Morris County,
New Jersey's Department of Transportation took extraordinary steps
late in June to offer the 130,000 motorists who use that stretch
each day renewed access while permanent repairs are made.
The June 22 chain-reaction crash, involving ignition of
gasoline from a tanker truck, so severely damaged an interstate
bridge that the highway initially was closed for four miles in one
direction between Parsippany and Denville while NJDOT workers
rushed to build a temporary ramp crossing. An attempt to open that
to use, however, proved problematic as hot weather kept the
asphalt used in the temporary structure from cooling sufficiently,
allowing ruts to form in the relatively deep asphalt.
NJDOT then hardened the asphalt surface by drilling holes
across it and using dry ice to cool the asphalt to a driveable
hardness. Two of the previously closed westbound lanes now are
open on the highway while repairs are made to the permanent
bridge, which suffered cracked concrete
supports. Distracted Drivers Could Face Charges in New Hampshire
New Hampshire legislators
last week passed a bill that will hold drivers accountable for
behind- the-wheel distractions that contribute to accidents.
Beginning January 1, state police can hand out a $1,000 fine
and suspend a driver's license for one year if the
accident-causing motorist was, for example, talking on a cell
phone, eating, or changing the radio. "People have moved their
homes and businesses into their vehicles, and until cars can drive
themselves, we have to keep the public's safety in mind," New
Castle Police Chief Jim Murphy told the Concord Monitor.
Last year, state police issued about 7,500 citations; nearly 25
percent of those were for accidents or erratic driving. Officials
reported 11 deaths due to driver distraction in the past two
years. Georgia Sinks $8.3 Billion Into Transit
Georgia Governor Ray Barnes
last week unveiled an accelerated transportation plan that
includes $8.3 billion for road and transit projects over the next
five years.
The plan begins this month with the sale of more than $200
million in federal bonds. Nearly $2 billion goes to high occupancy
vehicle lanes, $4 billion for expanded rail and bus service, and
$4 billion on highway expansion and development.
Barnes focused his plan on providing more transit options for
commuters while easing gridlock for those who still choose to
drive. He said in the Atlanta Journal-Constitution, "We're trying
to get ahead of the curve instead of reacting to the crisis. What
if we didn't do any of this? What would congestion be like in
2020?"
Financing for the program is still being hammered out, but
Barnes says the state has enough money to pay for the five-year
program, but will take on hefty bond debt that it will repay with
future federal transportation funds. The state will then need to
figure out how to pay to operate the new transit services.
Possibilities include allowing gas tax revenue to be used for
transit as well as roads, or imposing new taxes or fees on
drivers. Colorado Voters Would Pay to Ease Congestion
A survey of 800 Denver area
residents shows voters are willing to pay higher taxes in order to
clear up congestion in Colorado.
The poll reports 78 percent of the public would vote for a 0.4
percent increase in the six- county Regional Transportation
District sales tax. The funds would speed up construction of
projects totaling $5 billion, including highway widening, more bus
and carpool lanes, light-rail extensions, and two regional
commuter rail lines.
The Colorado Department of Transportation wants to wait at
least two years before the tax increase vote. CDOT Executive
Director Tom Norton told the Rocky Mountain News that "the
timing of a vote is less important than the fact that the highway
and transit interests demonstrate they can work together to bring
the projects forward."
The survey was paid for by CDOT, the Regional Transportation
District, and the Transit Alliance, an organization of local
governments, business groups, and residents promoting the use of
public transportation. Illinois DOT's Work Zone Safety Message
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