2013 Budget Proposal - Department of Transportation

President Obama’s FY 2013 budget request for the Department of Transportation rehashes last year’s request. The president renewed his request for $50 billion in the current fiscal year to provide a targeted economic boost and to jump start job creation. In addition, the administration used the budget request to again propose ideas for a long-term legislation to reauthorize the surface transportation programs. The timing of the proposal took away much of its relevance because both the House and Senate are already considering their own versions of transportation reauthorization.  Despite the fact that the House is working on a five-year reauthorization and the Senate is working on a two-year authorization, the administration proposes a six-year authorization totaling $476 billion. This compares to the Senate’s two-year bill totaling $109 billion and the House’s five-year bill totaling $260 billion. The administration proposes to use the “Peace Dividend” resulting from reduced military spending as a result of the U.S. withdrawal from Iraq and Obama’s plan to bring home American forces in Afghanistan to make up the $231 billion gap between what the Highway Trust Fund gas tax revenue provides and the proposed spending.  The president also renewed his call for a focus on livability and high-speed rail even though neither the House nor the Senate is including significant on either. For FY 2013 the request is as follows: Highway Program - Obligation limitation of $41.830 billion, an increase of $2.7 billion over FY 2012 but actually less than the $42.227 proposed by the bill currently on the Senate floor (which is set at FY 2011 funding levels). Transit Program - A total of $10.836 billion, an increase of $233 million over FY 2012. Included in that amount is $2.235 billion for the new starts and small starts programs an increase of $280 million from FY 2012. Rail program - A total of $2.698 billion would go to two newly proposed accounts; Network Development and System Preservation. The proposal would merge both Amtrak subsidy accounts with the High Speed and Intercity Passenger Rail accounts. Aviation Program - A total of $3.35 billion is requested for the Airport Improvement Program. House Rules to Address Highway Reauthorization Tomorrow: The House Rules Committee is scheduled to meet tomorrow to decide the terms of the debate that will be used when HR 7, the transportation reauthorization bill, is brought up for consideration on Wednesday, Feb.13, 2012. Thus far 241 amendments have been proposed. AGC will continue to advocate for increases for these critical water infrastructure accounts as the appropriations process moves forward. For more information, please contact Brian Deery at (703) 837-5319 ordeeryb@agc.org.