Transportation
Traditionally, transportation is among the least surprising and contentious of the federal budget items, mostly because of statutory funding levels established in the nation’s surface transportation bill. However, this year’s budget proposal for transportation is likely to generate considerable debate. Although the FY08 DOT budget proposal fully funds highways and safety programs at the levels called for in SAFETEA-LU, the funding blueprint fails to fully fund transit programs at promised levels.

Bush’s budget reneges on national commitment to transit
The president’s fiscal 2008 budget proposal requests $9.42 billion for the Federal Transit Administration (FTA), down $430 million (4.4 percent) from the $9.85 billion provided by Congress in FY06. The proposed FY08 funding is $309 million less than the level authorized by SAFETEA-LU. The proposed funding represents an 18 percent cut from anticipated levels. Most of that would come from the New Starts program, which would drop from $1.7 billion to $1.4 billion. The change has already sparked bipartisan criticism from leaders of the House Transportation and Infrastructure Committee.

AMTRAK again target, but Congress has other plans
The FY08 budget request calls for $800 million for the nation’s intercity passenger rail service, a sharp cut from the $1.293 billion allocated by Congress last year. Congress seems likely to again ignore the President’s AMTRAK funding request. This year, Congress appears poised to adopt legislation that would increase funding authorizations and encourage state support for passenger rail. New AMTRAK legislation would peg funding at more than $1.5 billion.

Other transportation programs
The budget calls for the creation of a new highway congestion initiative to be funded at $175 million. The Jobs Access Reverse Commute (JARC) program is slated for $156 million. The Congestion Mitigation and Air Quality (CMAQ) program is proposed at $1.6 billion for FY08. The New Freedom program (accessibility for people with limited physical abilities) would receive $87 million.

The looming fight over gas tax revenues
Another sore subject is sure to be the decision to apply excess gas tax revenue to the trust fund instead of distributing the fund to programs. The FY 2008 budget request asks for $40.3 billion, a $300 million increase from FY07. However, the budget eliminates $842 million in Revenue Aligned Budget Authority (RABA). This is an annual calculation based on actual motor fuel tax receipts. This provision ensures that transportation funding follows actual revenue from gas taxes and vehicle taxes. If more revenue than originally predicted is received, the RABA adjustment adds money to the baseline funding levels set in SAFETEA-LU. However, this year the Administration argues that concerns about the future stability of the highway trust fund demand that additional funding be held in reserve.