The Bush Administration's FY 2009 Budget: Transportation

The FY 2009 budget request for the Department of Transportation totals $68.2 billion in budgetary resources, $8.3 billion less than the $76.5 billion enacted in HR 2764 for FY 2008.

The Department of Homeland Security requested $50.5 billion in funding, which is an increase of $11.8 billion over the $38.7 billion enacted in FY 2008 by HR 2764.

Aviation

The Administration’s request for the Federal Aviation Administration (FAA) is $14.6 billion -- $272 million less than the FY 2008 enacted level.

The Airport Improvement Program would only receive $2.75 billion which is $765 million less than it received for FY 2008 (a 22% cut) and $1.15 billion less than the level authorized by the House-passed FAA Reauthorization bill (H.R. 2881).

The Essential Air Service (EAS) program’s funding is decreased to $50 million, a cut of $77 million from the level authorized by Congress. Nearly one half of the 141 communities that receive EAS funding would have to be dropped from the program.

The 2009 budget requests $3.5 million for the Office of the Secretary to pursue open skies aviation agreements with international partners and to further liberalize internationally.

The Administration’s budget also states that the FAA intends to resubmit its proposal to adopt a new cost-based user fee financing system in lieu of the current mix of fuel taxes, other excise taxes, and general fund contributions.

The DHS FY 2009 budget stated that it plans to use security service fees to improve screening at airport screening checkpoints, which may include the purchase and utilization of emerging technology equipment; the refurbishment and replacement of current equipment; the installation of surveillance systems to monitor checkpoint activities; the modification of checkpoint infrastructure to support checkpoint reconfigurations; and the creation of additional checkpoints to screen aviation passengers and airport personnel.

Rail

Amtrak would see a 40 percent cut, from $1.33 billion in fiscal 2008 to $800 million in fiscal 2009. The $475 million in operating subsidy grants, which Amtrak received in 2008, would be zeroed-out. The administration claims that this funding level will encourage Amtrak to undertake meaningful reforms and control spending, however such a funding level would in effect shut down the national passenger railroad system. The budget request proposes $275 million for "Efficiency Incentive Grants," which Amtrak would have to request and would not receive unless certain benchmarks were reached. In addition, Amtrak capital funds would be reduced from $850 million in FY08 to $525 million in FY09, a cut of 38 percent.

Neither the President’s Budget nor its supporting documents make any mention of funding the labor agreement Amtrak reached with its unions in January 2008.

Highway and Transit

The President’s Budget Proposal effectively cuts highway and transit grants to the states by $1 billion below the SAFETEA-LU guarantees. These cuts are in addition to the Administration’s proposed Revenue Aligned Budget Authority reduction of $1 billion.

$39.4 billion is requested for the Federal-aid highways program, $800 million below the $40.2 billion funding level that is guaranteed by SAFETEA-LU.

The FY 2009 proposal includes $10.136 billion for transit, which is $202 million below the $10.338 billion guaranteed by SAFETEA-LU.

Maritime, Longshore, and Transportation Security

Although the SAFE Port Act authorizes $400 million to be appropriated for each of the fiscal years 2007 through 2011, the President’s FY 2009 Budget only requests $210 million for the Port Security Grant Program.

The Administration’s request of $175 million for public transportation and rail security is a fraction of the $1.2 billion authorized for these programs under the Implementing Recommendations of the 9/11 Commission Act of 2007.

Other Infrastructure

In FY 2009 DOT has requested funding for FHWA, FMCSA, and the Office of the Secretary to improve global connectivity in freight and reduce bottlenecks in and around seaports and land borders with Canada and Mexico.

The FY 2009 proposal provides no funding for projects authorized in the Water Resources Development Act of 2007.

The Budget decreases the overall budget for the U.S. Army Corps of Engineers’ investigation and construction accounts by 46 percent and 27 percent, respectively.