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PRESIDENT’S 2009 TRANSPORT BUDGET HIGHLIGHTS

The Bush Administration submitted its final budget proposal to Congress today (February 4) for Fiscal Year 2009 which begins on October 1, 2008. The $3 trillion package covers all government programs and officially starts the debate in Congress over how the White House allocations are ultimately treated. The League has specifically looked at three areas of interest to members, mainly the Departments of Transportation (DOT), Homeland Security (DHS) and Corps of Engineers for Civil Works (COE).

In his transmission letter to Congress, the President said his budget is designed to be balanced by 2012 by: “creating the conditions for economic growth, keep taxes low and spend taxpayer dollars wisely or not at all.” To help remind Congress and the public of its achievements over its two terms, the White House has provided an accomplishment list in each of the government departments and programs since 2001.

Department of Transportation

The DOT the budget proposal states it will,

• “propose ways to manage the Nation’s airspace more efficiently to reduce travel delay;
• advance strategies to curb transportation congestion;
• ensure solvency of highway and surface transportation programs;
• take steps to rationalize the Nation’s intercity passenger rail system; and,
• improve transportation safety.”

With regard to combating highway congestion—the proposal allocates $175 million to demonstrate strategies for reducing highway congestion through the ease of road pricing. Examples include: implementing variable charges on toll lanes to maximize traffic flow; or converting higher occupancy vehicle lanes into high occupancy toll lanes which charge single-passenger vehicles for access while allowing for free access to multiple-passenger vehicles.

Regarding solvency of highway and surface transportation projects, it sets forth $39.4 billion for the Federal Aid Highway program which includes the final installment of the $286.4 billion in highway, transit, and safety program spending agreed upon in the last surface transportation reauthorization act.

In terms of rail safety, the budget provides $191 million for the Federal Railroad Administration’s safety program, which includes the hiring of bridge safety specialists and tank car engines and the development of technology for detecting track flaws that could lead to derailments.

A preliminary examination of departmental spending shows no appreciable increases from last year.

For a complete list of spending by transportation department programs, click here: http://www.whitehouse.gov/omb/budget/fy2009/transportation.html

Department of Homeland Security

Major funding in the Department of Homeland Security is slated for the nation’s transportation system—as well as reinforcing maritime safety and security. Overall spending for departmental programs included in the proposed budget would increase by 7.6 percent compared to 2008. Much of this focus rests with passenger operations, such as $3 billion for over 48,000 Transportation Security Officers and technologies to screen passengers and baggage for explosives.

On the air side for freight movements, the proposed budget provides $100 million for air cargo security inspectors, canine teams and the Certified Shipper Program.

Funding, security assessments on more than 2.4 million individuals, including commercial HAZMAT drivers, airport and port workers, and international flight crews are also provided.

Support in the budget is also laid out for Transportation Worker Identification Credentials (TWICs) with the issue of more than 100,000 credentials expected.

For a summary and detailed departmental spending, click here: http://www.whitehouse.gov/omb/budget/fy2009/homeland.html

Corps of Engineers- Civil Works

The proposed budget expresses financial support for facilitating commercial navigation; reducing the risk of damage from floods and storms and restoring adequate ecosystems. As for maintaining infrastructure, the budget gives priority to operating and maintaining key water resources infrastructure, including multipurpose dams, navigation projects and levees.

The Administration is also proposing to phase out the current excise tax on diesel fuel for the inland waterways and replace it with a lockage-based user fee. The Administration states that additional revenue is needed to pay for on going and future construction; replacement; expansion and rehabilitation work on the inland waterways, consistent with the required 50 percent cost-share for such interests from the Inland Waterways Trust Fund.

For a complete breakdown of spending per category, click here: http://www.whitehouse.gov/omb/budget/fy2009/corps.html

NAWLA
North American Wholesale Lumber Association
3601 Algonquin Road, Suite 400, Rolling Meadows, Illinois 60008
Telephone: 847-870-7470 Toll Free: 800-527-8258 Fax: 847-870-0201
E-mail: info@nawla.org