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DOT 21-06
Monday, February 6, 2006
Contact: Brian Turmail
Tel.: (202) 366-4570
Secretary Mineta Announces $65.6 Billion Budget for FY 2007, to Focus on
Continuing Vital Safety Programs, Improving Amtrak and Record Infrastructure
Investment
U.S. Transportation Secretary Norman Y. Mineta today unveiled a $65.6 billion
Fiscal Year 2007 budget request that provides record investments for new
highway, transit and safety programs, explores new ways to fund transportation
projects over the long term and provides funds to encourage continued Amtrak
reform.
“Our transportation network is the backbone of the strongest and most dynamic
economy in the world,” said Secretary Mineta. “So this budget looks to the
future, setting the stage for modernizing our financing as well as our
infrastructure.”
The budget fully funds the Safe, Accountable, Flexible, Efficient Transportation
Equity Act: A Legacy for Users (SAFETEA-LU) at nearly $50 billion for transit,
highways and safety programs, a $3.3 billion increase over 2006. Mineta noted
that one fourth of the budget request will be used to pay for safety
initiatives, including $815 million for the National Highway Traffic Safety
Administration.
The Administration’s proposal includes $900 million for Amtrak. Of that, $500
million is for capital needs and maintenance, especially along the Northeast
Corridor where Amtrak owns most of the tracks. The remaining $400 million will
fund Efficiency Incentive Grants to encourage reforms of the railroad service,
Mineta added.
“In last year’s budget, we demanded reform, and over the past year, both Amtrak
and the Congress have responded,” Secretary Mineta said. “In recognition of this
progress, and with the expectation that we will see much more by the end of the
fiscal year, the President requests funds to help Amtrak make the transition to
a new and better model of intercity passenger rail.”
The budget request also proposes $100 million for a pilot program to test the
viability of alternatives to the gasoline fuel tax for financing highway
construction and managing congestion. The federal proposal would call for
partnerships with up to five states to test fees, tolls, and other approaches
designed to examine new ways to raise revenue and at the same time ease traffic
on congested roads, Mineta noted.
“There is a growing consensus that traditional gasoline taxes and airline ticket
taxes are not adequate to the task of supporting 21st Century transportation
needs,” said Secretary Mineta. “The lessons that we learn through these
demonstrations will help inform future decisions on surface transportation
policies.”
The budget requests $13.7 billion for the Federal Aviation Administration (FAA),
including $8.4 billion to address operational needs, hire 194 inspectors and
other safety personnel and 1,136 new air traffic controllers to offset
retirements expected in 2007. It also provides $2.8 billion for the Airport
Improvement Program to construct new runways and to meet the Department’s goal
for improving runway safety, capacity and efficiency.
The Secretary noted that the Administration will propose a reauthorization plan
for the FAA that would include new financing proposals for the Aviation Trust
Fund. Current revenue coming into the fund, which provides resources for
maintaining and expanding airport capacity nationwide, is tied to the price of a
ticket. The Secretary said the proposal will include forward-looking ideas.
“There is general agreement that our growing aviation system needs a more stable
and predictable revenue stream that creates a more direct relationship between
revenues collected and services provided,” Mineta said.
The Department’s budget request includes $122 million for the Next Generation
Air Transportation System initiative. Of that, $80 million will go to the FAA
for the Automatic Dependent Surveillance-Broadcast (ADS-B) technology, and
another $24 million would fund System Wide Information Management (SWIM).
Together, these two systems will improve safety, efficiency and security
throughout the aviation system, the Secretary said.
The budget request includes $8.9 billion for the Federal Transit Administration.
The money will help improve transportation options for millions of Americans in
urban, suburban and rural communities and will improve service for many elderly
and disabled passengers, Mineta said. The budget also would fully fund the
Maritime Security Program, which provides support to troops abroad, and make $15
million available for capital improvements to the U.S. Merchant Marine Academy.
A detailed Budget in Brief, which summarizes the Bush Administration’s budget
request for the U.S. Department of Transportation, soon will be available on the
Internet at www.dot.gov.
Click here for a copy of the
Secretary's remarks.