President Releases FY 2009 Budget Proposal

The President released his proposal February 4th for the 2009 federal fiscal year budget (FY2009).  This begins the federal process for determining the funding levels for programs beginning October 1, 2008.   The next major step in the process is the passage of a congressional budget resolution.  The budget resolution is considered by the House and the Senate and does not require the President's signature.  It lays out the position of Congress on program funding levels for fiscal year 2009.  Under regular order, the Appropriations Subcommittees then make their decisions based on their budget allocations from the budget resolution.  Following that, the transportation appropriations bill moves to full committee and then the floor.  In other words, the release of the President's Budget is only the beginning of a long and often contentious process.

   In total, the President requested $68.2 billion for all Department of Transportation functions and responsibilities.  This figure is 3%, or $2.134 million, less than the FY2008 appropriation enacted in December 2007.  The Federal Highway Administration budget proposal is touted at $40.1 billion, which falls a bit short of SAFETEA-LU's $41.2 billion authorized level.  The FY2008 omnibus appropriations provided the full $41.2 billion.

   Other highlights of the proposed budget include:

• The FY2009 highway obligation limit comes to $39.4 billion when a $1 billion Revenue Aligned Budget Authority (RABA) deduction and $800 million in other rescissions of obligation authority are taken into account.
• The budget recognizes the anticipated shortfall in Highway Trust Fund receipts for FY2009 and proposes to allow no-interest loans from the mass transit account to the highway account of the Fund.
• The Essential Air Service and Rural Airport Improvement Fund would be cut completely.
• Operating grants to Amtrak, worth $475 million in FY2008, are zeroed out and rolled into a new Efficiency Incentive Grant program, proposed at $275 million for FY2009. Capital Assistance to States Intercity Passenger Rail Grant Program, created in FY2008 at $30 million, is converted to an Intercity Passenger Rail Grant Program worth $100 million.
• For REAL ID, the budget proposal for the Department of Homeland Security (DHS) includes $50 million for federal verification system development and connectivity support.  The $50 million state-focused grant program created in FY2008 is zeroed out in favor of a new $110 million National Security and Terrorism Prevention Grant program with multiple purposes.

Homeland Security to Grant $15 Million For Protection of Freight Railroad Systems

The Department of Homeland Security will award $15 million in grants in fiscal year 2008 to freight railroad carriers and the owners of cars used in the transportation of security-sensitive material.  The grants, part of DHS and the Federal Emergency Management Agency's $852 million Infrastructure Protection Program, are intended to be used to improve freight rail security. Funds may be used for conducting vulnerability assessments, developing security plans and security awareness, and training for emergency response.

Mark Your Calendars for NCSL Spring Forum in Washington DC

NCSL’s annual Spring Forum will kick off April 24^th and run through the 26^th at the Hyatt Regency on Capitol Hill in Washington, DC.  All Transportation Committee members are encouraged to come learn about and receive updates on the hot topics of the day as well as discuss the direction of NCSL policy in the state-federal arena.  More information as well as registration for the event can be found at http://www.ncsl.org/forum/.