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Concern is widespread over the condition of the nation's public works infrastructure. At the request of Senator Lawton Chiles, Chairman of the Senate Budget Committee, this study assesses the federal programs for highways, mass transit, aviation, waterways, and waste-water treatment, and discusses policies that the Congress might consider to improve the effectiveness of these programs. In keeping with the mandate of the Congressional Budget Office to provide objective analysis, it makes no recommendations.

This study also fulfills the requirement of Public Law 98-501 that the Congressional Budget Office review the findings of the National Council on Public Works Improvement. The body of this paper considers some of the broader issues raised by the Council's final report, Fragile Foundations: A Report on America's Public Works (1988); the appendix focuses more specifically on the Council's findings.

Michael Deich and Jenifer Wishart of CBO's Natural Resources and Commerce Division wrote the report under the supervision of Everett M. Ehrlich. Daniel Kaplan, Larry Ozanne, and Robin Seiler of CBO made substantial contributions to the report. Helpful suggestions were received from Mark Dayton, Theresa Gullo, Robert Hartman, Linda Radey, Deborah Reis, and Mitchell Rosenfeld, also of CBO. The authors are grateful for the critical comments and helpful remarks of David Williams and Steven Hornburg of the Senate Budget Committee staff. External reviewers offering valuable comments included Harry B. Caldwell, David L. Lewis, Regina McElroy, and Arlee Reno. The manuscript was edited by Francis S. Pierce. Gwen Coleman typed the many drafts, and Nancy H. Brooks and Kathryn Quattrone prepared the report for publication.
 

James L. Blum
Acting Director
September 1988
 
 

SUMMARY

I - HIGHWAYS

• The Changing Federal Role
• Achievements of the Highway Program
• The Outlook
• Policy Options for the Federal Highway Program

II - MASS TRANSIT

• The Changing Federal Role in Mass Transit
• What Has Been Accomplished
• The Outlook
• Policy Options for the Federal Transit Program

III - AVIATION

• The Changing Federal Role in Aviation
• Achievements
• The Outlook
• Options for Federal Aviation Policy

IV - WATER TRANSPORTATION

• The Changing Federal Role in Water Transportation
• Water Transportation Achievements and Outlook
• Policy Options for Waterways and Ports

V - WASTEWATER TREATMENT

• The Changing Federal Role in Water Pollution Control
• Achievements in Water Pollution Control
• The Outlook for Water Pollution Control
• Policy Options for Wastewater Treatment

VI - COMPREHENSIVE STRATEGIES

• Is Greater Competition Among Infrastructure Forms Desirable?
• Comprehensive Infrastructure Options

APPENDIX - The Report of the National Council on Public Works Improvement
 

TABLES
S-1.	Federal Infrastructure Spending, 1988
1.	Federal Programs for Highways, 1987-1992
2.	Investment and Returns on Highway Maintenance, 1984-1985
3.	Alternative Estimates of Federal Highway Taxes and Spending
4.	Prospective Returns on Investment for Five Highway Maintenance Strategies, Under Low and High Traffic Growth
5.	Economic Priorities for Highway Investment
6.	Work Trips and Transit Use in 1970 and 1980
7.	Performance and Condition of Transit Fleets, 1985
8.	Comparative Performance of Bus Agencies, by Size
9.	Transit Performance in Cities With New or Recently Expanded Rail Transit Systems
10.	National Financing for Aviation Facilities and Services, 1986
11.	Alternative Estimates of Aviation Taxes and Spending, 1971-1987
12.	Sources of Airport Investment
13.	Projected Development Costs for the Airport System, by Program Objective, 1986-1995
14.	Inland Waterway Traffic, 1985
15.	Principal Commodities in Inland Waterborne Commerce, 1985
16.	Federal Outlays and Revenues: The Inland Waterway System
17.	Federal Expenditures and Cost Recovery for Ports and Harbors
18.	Federal Port Operations and Maintenance Outlays per Ton of Cargo, 1977-1984
19.	Traffic and Operations and Maintenance Outlays on the Inland Waterways System, 1985
20.	Effect of Cost-Sharing on Harbor Improvements
21.	Changes in Water Quality, 1972-1982
22.	Costs of Wastewater Treatment Facilities Needed to Meet the Clean Water Act Requirements for the 1986 Population, by State
23.	Comparison of Federal Outlays for Municipal Wastewater Treatment Under the President's Proposal and Under a Proposal to Cancel Capitalization Grants
24.	Grant Equivalence of State Revolving Fund Loans at Various Interest Rates
25.	Allocation of Annual Federal Wastewater Treatment Grants, 1989-1991
A-1.	Annual Infrastructure Investment Needs
FIGURES
1.	Changes in Average Highway Pavement Conditions, 1975-1985
2.	Average Annual Obligations of Federal Aid for Transit
3.	Distribution of Formula Aid and Indicators of Transit Need, by City Size
4.	Sources of Revenue for the Airport and Airway Trust Fund, 1983-1987
5.	Federal Funding for Airports and Airways in 1986
6.	Recipients of New Federal Airports Grants Approved From 1983 Through 1987
Box
1.	An Example of Tranching

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