Hill Heat

Witnesses Panel I: Status of Surface Transportation Trust Funds and Impact on Federal Spending

• James S. Simpson, Administrator, Federal Transit Administration, U.S. Department of Transportation
• James D. Ray, Administrator (Acting), Federal Highway Administration, U. S. Department of Transportation
• John F. McCaskie, Chief Engineer, Swank Associated Companies (Transportation Construction Coalition)
• William W. Millar, President, American Public Transportation Association

Panel II: Future Outlook and Budgetary Needs for AMTRAK

• Joseph H. Boardman, Administrator, Federal Railroad Administration
• Donna McLean, Chairman of the Board, National Railroad Passenger Corporation-AMTRAK
• Alexander Kummant, President & CEO, National Railroad Passenger Corporation-AMTRAK
• David Tornquist, Assistant Inspector General, United States Department of Transportation
• Joel M. Parker, International Vice President & Special Assistant to the President, Transportation Communications International Union

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 $68.2 billion total represents a $2.13 billion decrease from the FY 2008 appropriations bill enacted in December 2007. Moreover, proposed budget rescission measures totaling $3.89 billion would further reduce the budgetary resources available to DOT in FY 2009 to $64.31 billion.

The Administration is again proposing dramatic cuts in federal support for Amtrak. Congress appropriated $1.3 billion for Amtrak in FY 2008 with $850 million going to capital and debt service and $475 million to operating subsidies. The Administration’s budget proposes a total of $800 million, a cut of $525 million or 40 percent. 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.

Other highlights in the Department of Transportation (DOT) budget include:

• Congestion Mitigation and Air Quality Improvement Program (CMAQ) – $1.8 billion. CMAQ supports transportation projects that assist in meeting and maintaining national ambient air quality standards.
• Clean Fuels Grant Program – $51 million to support transit operators in transitioning to cleaner and more efficient buses and fuels, an increase of $2 million from $49 million appropriated in FY 2008.
• Transit Planning – $113.5 million to support the activities of regional planning agencies and states to plan for transit investments, an increase of $6.5 million from $107 million appropriated in FY 2008.