Quick Look: President Bush's FY 2009 Budget: Dept. of Transportation -- Feb. 4 2008

The California Institute prepares a quick analysis of the President's budget request on the day it is released.  For the FY 2009 Budget, the budget was released the morning of February 4, 2008.  The following represents an examination of this portion of the budget from a California perspective.  For analysis of other components visit our 2009 Budget page.

 

DEPARTMENT OF TRANSPORTATION

In FY2009, the President proposes $69.9 billion in discretionary funds and $1.2 billion in mandatory funds, totaling $71.1 billion for Transportation programs.

Transportation Planning Research and Development

The 2008 Budget recommends a $10.1 million appropriation to finance research activities and studies concerned with planning, analysis, and information development needed to support national transportation policy formulation.

Federal Aviation Administration (FAA)

The President's Budget requests $14.6 billion in Federal Aviation Administration (FAA) Budget authority, sub-allocated in the following way: $8.1 billion for operations; $2.75 billion for Grants-in-aid for Airports expenses; elimination of funding for facilities and equipment programs; and $171 million for research, engineering and development. $9,161 million would be provided from the Airport and Airway Trust Fund for FAA activities. The proposed FAA level would be a $2,423 million increase from the FY2008enacted amount.

Federal Highway Administration (FHWA)

The 2008 Federal Highways Administration (FHWA) Budget includes $0 million in new Budget authority, and $39.4 billion in obligation limitations for federal-aid highway programs. Going by prior year calculations, California is estimated to receive about 9.5 percent of total highway planning and construction distributions in 2009. In 2006, the Safe, Accountable, Flexible and Efficient Transportation Equity Act: A Legacy for Users or SAFETEA-LU (P.L 109-59) was approved as the new national surface transportation law. SAFETEA-LU authorized highways, bridge and safety spending programs administered by the (FHWA) through 2009. Because of the unique highway spending framework, Budget language remains consistent with SAFETEA-LU's funding structure, i.e. highway spending levels will correspond to Highway Trust Fund (HTF) receipts. SAFETEA-LU authorized a new Highway Safety Improvement (HSIP) program that supports innovative traffic fatality and injury reduction programs on public roads and established an Equity Bonus program that will bring California's HTF return rate to 92 percent by 2009.

Orange County (CA) Toll Road Demonstration Project Program Account As required by the Federal Credit Reform Act of 1990, this account records for this program, the subsidy costs associated with the direct loans obligated in 1992 and later years as well as administrative expenses of this program. The Department provided these lines of credit for two toll road projects in Orange County, California. Each year, $24 million of these lines of credit expire if not used. No budget authority is granted to the program in FY 2009.

Federal-Aid Highways (FAH)

A total of $41,487 million is requested for Federal-aid highways and highway safety construction programs for FY 2009. $429.8 million shall be available for the implementation or execution of programs for transportation research. For all FAH program funding, $39.5 billion may be derived from the Highway Trust Fund.  These funding amounts are set by federal transportation laws passed approximately every six years -- the last round being under the SAFETEA-LU bill approved in 2005 -- and little movement in spending takes place in the interim via budgets or appropriations bills.

Federal Motor Carrier Safety Administration

The 2009 Budget requests $307 million for Motor Carrier Safety Grants. Of this amount, $209 million of this appropriation is dedicated to finance grants to help states implement highway safety programs. $32 million is provided to support state safety enforcement activities at both northern and southern borders. An additional $25 million is provided to support state efforts to improve commercial driver's license (CDL) oversight and a $3 million allocation is proposed for Safety data improvement program to improve the accuracy, timeliness, and completeness of commercial motor vehicle safety data; and $8 million to modernize its Commercial Driver's License Information System (CDLIS). Furthermore, the 2009 Budget requests $234 million for Motor Carrier Safety Operations and Programs. This account is used to support federal enforcement of safety regulations at the US/Mexico border to ensure Mexican carrier compliance with federal standards.

National Highway Traffic Safety Administration (NHTSA)

$851 million is appropriated for this agency, an increase of $13 million from the 2008 estimated appropriation. These funds are split with $232 million proposed for operations and research expenses, allocated from the HTF, while $620 million is set aside for grants to states to fund targeted highway safety projects and initiatives.

Federal Railroad Administration (FRA)

The President proposes $1.1 billion to support FRA programs, this includes $525 million for the National Railroad Passenger Corporation (Amtrak), although funds for Amtrak would be limited to efficiency incentive grants and debt servicing costs. The 09 Budget recommends $8 million to support Next Generation High Speed Rail activities and proposes to eliminate the Northeast corridor improvement program.

Federal Transit Administration (FTA)

Reauthorized under SAFETEA-LU, the Federal Transit Administration (FTA) provides funding to transit operators, State and local governments and other recipients for the construction of facilities; the purchase of vehicles and equipment; the improvement of technology, service techniques, and methods; the support of region-wide transportation planning; and transit operations. FTA also provides financial assistance to help implement other national goals relating to mobility for the elderly, people with disabilities, and economically disadvantaged individuals. Transit funds are split between formula/ bus and capital investment discretionary grant accounts. The 2009 Budget proposes $10.1 billion for the FTA, an increase of $644 million from the 2008 enacted level.

Research and University Research Centers

The Budget proposes a $60 million allocation for transit research programs, a cut of $5 million from prior appropriations.

Capital Investment Grants

New Starts and Small Starts project funds are sourced to the Capital Investment Grants account. Under the proposed budget, $1.6 billion is provided to finance New Starts projects which are capital investments to establish or extend fixed guideway transit systems.

Transit Formula Grants and Research

Formula and Bus Grants are funded by contract authority provided in SAFETEA LU. Formula Grant funds can be used for all transit purposes including planning, bus and railcar purchases, facility repair and construction, maintenance and where eligible, operating expenses. These funds help transit systems alleviate congestion, ensure basic mobility, promote economically vibrant communities and meet the requirements of the Americans with Disabilities Act (ADA) and the Clean Air Act (CAA). The Budget proposes $5.3 billion for urbanized area programs, of which California typically receives 17 percent. Fixed guideway modernization is budgeted $1.7 billion, of which California generally receives 12 percent of total apportionments, Bus and Bus Facilities discretionary levels are set at $1.5 billion, most of which are earmarked for distribution in SAFETEA-LU language (California's share of the 5 year total is 9.7 percent). The Clean Fuels discretionary grant program received a $15 million increase, now budgeted at $61 million to improve and accommodate buses powered by low or zero-emission technology.

 

 

The California Institute prepares a quick analysis of the President's budget request on the day it is released.  The FY 2009 Budget was released the morning of February 4, 2008.  The following represents an examination of this portion of the budget from a California perspective.  For analysis of other components visit our 2009 Budget page.

Official Source Material for FY 2009 Budget -- For your reference, the following are links to mirrored copies of OMB 2009 Budget materials (which are also available from the U.S. Office of Management and Budget via direct download)

 

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