Legislative Notice #35

July 24, 1997

No. 35

Calendar No. 121

Reported from the Senate Committee on Appropriations July 22, 1997, by a vote of 28-0. S. Rept. 105-55.

• The Majority Leader has announced that he wants to complete the DOT appropriations bill before the August recess.
• Together with $300 million in Department of Defense appropriations for the Coast Guard, the Department of Transportation bill provides a total of $42.8 billion in new spending authority for the Department of Transportation and related agencies for fiscal year 1998. The bill provides $2.5 billion more in FY98 than in FY97, and exceeds the President's request by $2.4 billion. [See attached chart.]
• The Committee's recommendation meets the budget authority and outlay limits established in the 602(b) allocation, as revised.
• The bill increases funding for investment in infrastructure used by the public, that is, highways, transit, airports, and railroads, providing an 8-percent increase over the Administration's request for a total of $30.1 billion.

Funding Levels: Together with $300 million in DOD appropriations for the Coast Guard, the DOT bill provides a total of $42.8 billion in new spending authority for the Department of Transportation and related agencies for fiscal year 1998. The Committee's recommendation meets the budget authority and outlay limits established in the 602(b) allocation, as revised. The bill provides $2.5 billion more for FY98 than in FY97, and exceeds the President's request by $2.4 billion.

Infrastructure Investment:

• The bill provides a total of $30.1 billion for investment in infrastructure used by the public, that is, highways, transit, airports, and railroads -- an 8-percent increase over the Administration's request.
• The bill funds a Federal-aid highway obligation limitation of $21.8 billion for investment in our nation's highways. This level is $1.63 billion above the President's amended budget request and is consistent with the budget resolution.
• A total of $300 million is provided for Appalachian Development Highway System investment consistent with the existing authorization.
• The bill recommends $1.7 billion for the Airport Improvement Program. This level is $700 million above the President's request and funds airport construction, enhancement, noise mitigation, and expansion projects.
• Transit formula and discretionary accounts are funded at $4.56 billion (including the Washington Metrorail System). This level is $311 million above fiscal year 1997.

Safety:

• The bill provides $5.38 billion for the FAA's operations account -- 99.8 percent of the Administration's request. The Committee was able to fund the FAA's operations account at this level without imposing $300 million in new user fee taxes as proposed in the budget request.

• The Senate Committee significantly increases funding for FAA air traffic services, funding 500 additional air traffic controller positions and 235 additional safety inspectors.

The FAA funding recommendation includes an increase of 235 safety inspectors, consistent with the Administration's request.

• The National Highway Traffic Safety Administration programs are funded at $333 million, which is $32.8 million above the fiscal year 1997 enacted levels and slightly higher than the Administration's request.
• The Committee provides $50.7 million for the National Transportation Safety Board, 8-percent above the President's request, to support the NTSB's investigatory mission and expedite the development of safety recommendations.

Operation of Airways and Waterways:

• The bill funds 500 additional air traffic controllers (FAA) over FY 1997, as requested by the Administration.
• Funding for Coast Guard operations includes an increase of $112 million above fiscal year 1997 for total operating expenses of $2.7 billion. This is consistent with the Administration's request and will continue the Committee's support of the streamlined Coast Guard.
• Coast Guard funding includes an increase of $53 million for anti-drug activities, as anticipated by the Office of National Drug Control Policy. The Committee has provided the Commandant of the Coast Guard the discretion and flexibility to manage this funding, but has encouraged the Department to look at these activities as areas that would benefit from the development of performance measures.
• The bill funds Coast Guard Acquisition, Construction, and Improvements (AC&I) at $412.3 million, an increase of $37.5 million above the Administration's request for AC&I. This account provides the Coast Guard with the equipment, ships, and aircraft to complete their multiple missions. The AC&I account is expecting a bow-wave of demand in the years ahead, and the Committee's recommendation focuses on those acquisition programs that can be accelerated now to provide room in the out years to replace the deep water fleet.

Government Reform

• Government Performance and Results Act: The Committee provides guidance on the Department's strategic plan and commits to work with the Department to realign budget accounts to support a better allocation of resources to the most effective programs.
• TASC Inspector General Study: The Committee supports the Department's efforts to operate more like private business and avoids micromanagement of these efforts, but it does direct the DOT's IG to study whether the Transportation Administrative Service Center (TASC) is providing cost-effective services, as it was established to do.
• St. Lawrence Seaway PBO: The Committee assumes enactment of the Administration's proposal to convert the Seaway to a Performance-Based Organization and move its financing from appropriated funds to an automatic, annual, performance-based payment. No funds are included in the bill for the Seaway, but if the legislative proposal fails, the committee says it will work to ensure in conference that the Seaway is funded.

Department of Transportation

Coast Guard

Operations, Acquisition, Construction and Improvements: Increases funding for the Coast Guard by $189.8 million over last year, for a total of $3.96 billion. That is $40 million above the Administration's request. The $2.73 billion recommended for Coast Guard operating expenses includes $25 million from the oilspill liability trust fund and assumes a $300 million transfer from the Department of Defense for Coast Guard support of national security missions. For acquisition, construction, and improvements, the bill appropriates $412.3 million, $33.3 million over the request.

Federal Aviation Administration

Overall Funding: Provides a total program level of $9.18 billion to the FAA, which is $718.1 million more than the Administration request and $638 million more than last year. The total includes $50 million in user fees credited to the "operations" account and $1.7 billion obligation limitation on the use of contract authority for the Airport Grants Program. The Senate Committee would boost spending for air travel safety, funding 500 additional air traffic controller positions.

Operating Expenses: Increases funding to a level of $5.33 billion for operations (Administration and management of airports and FAA programs), plus an additional $50 million from user fees. Within the operating account, $4.18 billion is for the operation and maintenance of the national air traffic control and flight service system ($380.6 million above last year). It would provide $614.2 million for aviation regulation and certification, and $262.1 million for administration. The remainder of the funds go to aviation security; research and acquisition; administration of airports; commercial space transportation; and staff offices.

Facilities and Equipment: Provides $1.89 billion for facilities and equipment, all of which is to be paid from the Airport and Airway Trust Fund. That is $95.5 million over last year.

Airport Improvement Program: The Committee provides $1.70 billion for AIP (airport improvement program) grants. This is $700 million, or 70 percent, over the budget request. The recommended amount is intended to be sufficient to continue the important tasks of enhancing airport safety, ensuring that airport standards can be met, maintaining existing airport capacity, and developing additional capacity. The Committee notes that a sizeable alternative source of funding is now available to airports in the form of passenger facility charges (PFC's). In 1996, airports collected $1.05 billion in PFC charges, and $1.08 billion is estimated to be collected in calendar year 1997.

Legislative Provisions: The Committee includes bill provisions related to the second-career training program, Sunday premium pay, manned auxiliary flight service stations, commercial space transportation, and GPS nonprecision approaches.

Federal Highway Administration

Overall Funding: Provides an overall total program level of $23.58 billion for the Federal Highway Administration, which is $1.75 billion above last year, and $1.55 billion above the budget request.

Intelligent Transportation Systems (ITS): Recommends a total of $125.7 million for ITS research and development, and operational tests.

Federal-Aid Highways: The Senate version would raise the highway obligation ceiling to $21.80 billion for the regular federal-aid formula program, which is $2.87 billion more than last year and $1.63 billion over the request, but is consistent with the budget resolution. In addition, the programs outside the obligation ceiling are estimated at $1.39 billion for a total program level of $23.19 billion.

National Highway Traffic Safety Administration

Overall Funding: The Committee recommends a total program level of $333.5 million for the National Highway Traffic Safety Administration (NHTSA). This is $32.8 million over last year, and $500,000 more than the Administration request. The bill includes $146.5 million for operations and research. For various safety programs, the Committee recommends $10.2 million for alcohol and drug programs, $7 million to increase seat belt use, and $953,000 to continue present operations of the auto safety hotline. The Committee directs NHTSA to continue to make available accurate information on the safety benefits and risks of airbags and on the correct use of airbags.

Highway Traffic Safety Grants: Provides $187 million for Highway Traffic Safety Grants, of which $150.7 million is for NHTSA's state and community highway safety formula grants, $ 34 million is for the alcohol incentive grants, and $2.3 million is for National Driver Register. This total is $1.5 million more than the Administration request, and $18.9 million above the FY97 level.

Federal Railroad Administration

Overall Funding: The Committee total program funding of $772.2 million for the activities of the Federal Railroad Administration for FY98 is $259.4 million under last year, and $146.1 million less than requested.

Northeast Corridor: The bill provides $273.5 million for the high-speed rail improvements to the Northeast Corridor, which is $98.5 million over last year and $50 million more for corridor improvements than requested by the Administration. This amount includes $23.5 million to complete the federal share of funding for the Pennsylvania Station redevelopment project in New York City.

Amtrak: The Committee raises FY98 operating assistance for Amtrak (National Railroad Passenger Corporation) to the requested level of $344 million, but assumes that capital funding will be provided through a new separate account. The Administration has requested $445.5 million for capital expenses (including $200 million for Amtrak and $23.5 million for Penn Station) and $344 million for Amtrak operating expenses. In 1996, the combined debt and capital lease obligation for which Amtrak was responsible totaled $986.9 million and the Corporation paid $60.2 million in interest on this debt which came from Amtrak's operating revenues. The Committee strongly recommends that Amtrak reform legislation be addressed this year if the railroad to survive.

High-Speed Rail: The bill provides $26 million for the next-generation high-speed rail program, $6.4 million more than the request, for research, development, and technology demonstration programs, as well as planning and analysis required to evaluate technology proposals.

Federal Transit Administration

Overall Funding: The Committee provides total program funding of $4.68 billion in funding for the Federal Transit Administration. This total is $197.4 million more than the request.

Mass Transit Formula Grants: For transit, the Senate provides $2.4 billion for formula grants which are used for capital purposes, including $128.7 million for nonurban formula grants, $60.6 million for elderly and disabled program grants, and $2.21 billion for urban formula grants. The total is $250.8 million more than last year.

Discretionary Grants: Provides $2 billion (limit on obligations) for discretionary grants to be used in financing mass transportation investments. Of the total, $440 million is to be used for bus and bus-related facilities, $780 million for fixed guideway modernization projects, and $780 million for new starts (for project descriptions, see Committee Report pages 133-143).

Related Agencies

Provides $50.7 million for the National Transportation Safety Board (NTSB), and $3.6 million for the salaries and expenses of the Architectural and Transportation Barriers Compliance Board.

Government Performance and Results Act

The Government Performance and Results Act (GPRA) requires Federal agencies to develop strategic plans and annual performance plans and reports. The first multiyear strategic plan is due by the end of September 1997. The Committee is fully committed to support the Department as it seeks to implement the requirements of the Act.

"The Committee commends the Department for its aggressive implementation of the Results Act. ... The draft strategic plan represents a commendable effort that builds on the Department's efforts to identify program performance measures and articulates broad goals and objectives for the array of departmental programs. The Committee is disappointed, however, that the draft plan does not set out priorities among those goals and objectives. Setting priorities among such a broad array of goals and objectives is a challenging and controversial task, but the Committee is convinced that a plan with as many goals and objectives as the Department's draft plan that lacks a priority scheme is, in the end, no plan at all. . . The Committee, therefore, strongly urges the Secretary to consult with this Committee and others in Congress and the Department's stakeholders, before the strategic plan is finalized, to identify priorities among the Department's goals and objectives. . . .

"As the Department moves forward with implementation of the Results Act, the Committee understands that revisions and realignments to current budgetary presentations will be likely to ensure consistency with strategic and annual performance plans. The Committee strongly encourages the Department to develop and propose such revisions, and to present any necessary reconciliation and crosswalks, to ensure that fiscal year 1999 and subsequent budget submissions display amounts requested against program activity structures for which annual performance goals and indicators have been established. The Committee further expects that the Department will develop any needed revisions to account and program activity structures in consultation with the Committee on Appropriations and cognizant authorization committees."

CBO estimates that the bill would result in new outlays of $13.23 billion in FY98, $15.52 billion in FY99, $5.51 billion in FY 2000, $2.47 billion in FY 2001, and $4.5 billion in FY 2002 and future years.

At press time, no official position had been received.

At press time, no amendments were known that were expected to undergo roll call votes.