On 

$2.1 Billion Cut in FY 2006 Transportation Budget

The fiscal year (FY) 2006 Transportation Budget was released today by the U.S Transportation Secretary Norman Y. Mineta as part of the Administration’s proposed Budget for FY 2006. The Transportation Budget request of $59.5 billion represents a $2.1 billion cut from FY 2005 budget of $61.6 billion.

·         Elimination of $1.2 billion in subsidies for Amtrak – The zeroing out of funding for Amtrak would essentially eliminate the rail service.  According to the Secretary, “the current model of passenger rail service is flawed and unsustainable.” The budget proposal calls for legislative reform via the Passenger Rail Investment Reform Act which was introduced in Congress in 2003. Pending enactment of reforms by Congress, the administration would endorse increased funding for intercity passenger rail. The budget request includes a $360 million request to maintain existing commuter and freight services along the Northeast corridor (NEC) and elsewhere in the event of Amtrak bankruptcy.

·         A $28 billion funding increase for the administration’s six year surface transportation reauthorization proposal, the Safe, Accountable, Flexible and, Efficient Transportation Equity Act of 2003 (SAFETEA) from $256 billion to $284 billion. This increase brings the administration funding proposal close to the $283.9 billion six-year transportation bill, Transportation Equity Act: A Legacy for Users (H.R 3550) passed by the House last year. The Senate proposal sought a higher spending level of $318 billion. 

·         Transit funding increases from $7.65 billion in FY ‘05 to $7.78 billion in FY 06. However the Urbanized Area Formula Program (Sec. 5307) and the Fixed Guideway Modernization  Program (Sec. 5309) will see a $300 million cut in funding from $5.3 billion in FY ‘05 to $5.0 billion. These programs help promote clean bus deployment through the funding of innovative technologies and, capital projects to replace, rehabilitate, and purchase buses and related equipment.

·         General transit fund support is not guaranteed as it was under Transportation Equity Act for the 21st Century (TEA-21). Further the budget does not maintain the spending ratio between transit and highway programs of 1:4. It assumes FY’09 transit funding at 16 percent of total spending relative to highways. FY’09 is most critical year in the 6-year budget cycle for transportation because it sets the baseline spending for next transportation bill renewal.

Click here for Print version