Legislative Update

Administration Releases FY 2007 Budget Proposal

February 8, 2006

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The Bush Administration released its Fiscal Year (FY) 2007 Budget proposal, which recommends a funding level of $8.87 billion for the federal transit program. The Administration's proposal represents an increase of $370.3 million or 4.4 percent over the FY 2006 final appropriation level.

Below is a table describing the Administration's FY 2007 budget proposal for the federal transit program. Actual funding will be set under the FY 2007 Transportation Appropriations bill.

Program		FY 2006 Appropriation (a) (Thousands)	FY 2007 Administration Budget Request (Thousands)	FY 2007 Administration Budget Request Compared to FY 2006 Appropriation
				Dollars (Thousands)	Percent
Total All Programs		8,504,461	8,874,775	370,314	4.4%
	Formula Programs Total	4,624,964	4,860,275	235,311	5.1%
	§ 5307 Urbanized Area	3,432,014	3,606,175	174,161	5.1%
	§ 5340 Growing States and High Density States	384,120	404,000	19,880	5.2%
	§ 5311 Rural Area	384,120	404,000	19,880	5.2%
	§ 5310 Elderly and Disabled	110,880	117,000	6,120	5.5%
	§ 5317 New Freedom	77,220	81,000	3,780	4.9%
	§ 5308 Clean Fuels Formula	42,570	45,000	2,430	5.7%
	§ 3038 Over-the Road Bus	7,425	7,600	175	2.4%
	§ 5316 Job Access and Reverse Commute	136,620	144,000	7,380	5.4%
	§ 5320 Alternative Transportation in Parks	21,780	23,000	1,220	5.6%
	§ 5335 Reports and Audits	3,465	3,500	35	1.0%
	§ 5339 Alternatives Analysis	24,750	25,000	250	1.0%
	§ 5309 Capital Investment Programs Total	3,631,799	3,769,500	137,701	3.8%
	Fixed-Guideway Modernization	(b) 1,329,802	1,448,000	118,198	8.9%
	New Starts Total	(b) 1,487,970	1,466,000	(21,970)	-1.5%
	New Starts Less Than $75 Million	---	100,000	100,000	---
	New Starts $75 Million or More	(b) 1,487,970	1,366,000	(121,970)	-8.2%
	Bus and Bus Facilities	814,028	855,500	41,473	5.1%
Planning Total		94,050	99,000	4,950	5.3%
	§ 5305(d) Metropolitan Planning	77,798	81,893	4,095	5.3%
	§ 5305(e) State Planning	16,252	17,107	855	5.3%
Research Total		74,448	61,000	(13,448)	-18.1%
	§ 5313(a) TCRP	8,910	9,300	390	4.4%
	§ 5315 National Transit Inst.	4,257	4,300	43	1.0%
	§ 5314 National Research	54,351	40,400	(13,951)	-25.7%
	§ 5506 University Centers	6,930	7,000	70	1.0%
FTA Operations		79,200	85,000	5,800	7.3%
(a) Includes one percent across-the-board rescission of federal funds.
(b) Includes the transfer of $47.3 Million from Fixed-Guideway Modernization to New Starts.

While the proposal adheres to the transit program authorized under the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU) in most respects, it would fund only $100 million of the $200 million authorized in FY 2007 for the new small starts program. Thus, the Administration's proposal, if adopted, would provide $100 million less than the $8.97 billion authorized and guaranteed for the federal transit program in FY 2007.

Under the recommendations for the Federal Railroad Administration (FRA), the budget proposal assumes the imposition of $59 million in fees on commuter railroads in the Northeast Corridor in each of FY 2006 and FY 2007 to support Amtrak operations. These fees are a product of language in the FY 2006 Transportation Appropriations Act directing the U.S. Department of Transportation (DOT) to establish and assess fees on commuter rail operators for direct capital or maintenance costs associated with use of the Northeast Corridor, language which also directs DOT to set such fees through an open and transparent process that seeks consensus among stakeholders. The budget proposal also calls for a cut in Amtrak funding, recommending that it be cut from $1.3 billion in FY 2006 to $900 million in FY 2007.

Details of the Administration's FY 2007 budget proposal for the Federal Transit Administration (FTA) and FRA are provided by the Office of Management and Budget (OMB) in the Appendix to the Budget of the United States Government, Fiscal Year 2007. The Appendix contains proposed text of appropriations language, budget schedules for each account and other information. FTA's proposed budget begins on page 883 of the FY 2007 Appendix, and the proposal for FRA begins on page 875. These sections are available at:
http://www.whitehouse.gov/omb/budget/fy2007/pdf/appendix/dot.pdf

For more information on the Administration's FY 2007 budget proposal, please contact Rob Healy of APTA's Government Affairs Department at (202) 496-4811 or e-mail rhealy@apta.com.

Transit Security Funding

Under the Administration's FY 2007 budget proposal for the Department of Homeland Security (DHS), funding for a Targeted Infrastructure Protection program would be set at $600 million, the same level requested in last year's budget proposal. Under the proposal, these grants would be used to provide targeted infrastructure protection to ports, transit facilities, and other infrastructure facilities determined by the DHS Secretary. Last year, Congress rejected the President's proposed program structure and instead provided a total of $390 million for these purposes under five separate programs, including a $150 million program for transit and rail security. In addition to the $150 million for transit and rail security under the FY 2006 DHS Appropriations Act, the Act provided $175 million for port security, $50 million for buffer zone protection grants, $10 million for intercity bus security, and $5 million for trucking security.

Details of the Administration's FY 2007 budget proposal for DHS are also found in OMB's Appendix to the Budget of the United States Government, Fiscal Year 2007. The Administration's proposed Targeted Infrastructure Protection program is discussed on pages 507 - 509 of the FY 2007 Appendix. It is available at:
http://www.whitehouse.gov/omb/budget/fy2007/pdf/appendix/dhs.pdf

For more information on transit security funding, please contact Tom Yedinak of APTA's Government Affairs Department at (202) 496-4865 or email tyedinak@apta.com.

FTA Releases Annual New Start Report

FTA has released the FY 2007 Annual Report on New Starts, the Administration's proposed allocation of funds for the design and construction of fixed-guideway New Starts for the coming fiscal year. The report recommends funding for 16 existing, 2 pending, and 5 proposed Full Funding Grant Agreements (FFGA). It also recommends funding for five other projects without providing specific funding levels for each project. The full report is available at:
http://www.fta.dot.gov/18022_ENG_HTML.htm

For more information on New Starts or Small Starts, please contact Rich Weaver of APTA's Government Affairs Department at (202) 496-4809 or email rweaver@apta.com.

 

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