WASHINGTON—The Chairman of the House Subcommittee on Highways and Transit says the budget proposal put forward by the Bush administration today presents little that is new, and much that is disappointing.

Rep. Peter Defazio (D-OR) says the Bush budget plan for Fiscal Year 2009 shortchanges highways, transit, rail, and air transportation programs, as well as emergency preparedness, inland water transportation, and environmental infrastructure development. Just like the FY 2008 proposal, the new budget plan reiterates the ideological proposals to cut Federal infrastructure investment, proposals that have been rejected time and again.

"At a time when the American economy could use a shot in the arm and there are roughly 3,000 highway and transit projects ready-to-go if funded, the President proposes to cut surface transportation funding by $2 billion," DeFazio said. "That could cost 100,000 American construction jobs in the next year.  According to the U.S. Department of Transportation, every billion we invest in infrastructure creates 47,500 jobs.  This Administration has once again proved that it is not serious about combating congestion, making critical improvements to our nation’s infrastructure, or stimulating the economy through job creation."

Perhaps the most egregious cut in the Transportation title of the budget is the Administration’s plan to violate the highway and transit funding guarantees in the current surface transportation authorization act, SAFETEA-LU. The proposal effectively cuts highway and transit grants to the states by $1 billion below the SAFETEA-LU guarantees. These cuts are in addition to the Administration’s proposed Revenue Aligned Budget Authority reduction of $1 billion.

The Administration refuses to accept defeat on the Water Resources Development Act of 2007. WRDA, the first water projects authorization bill enacted since 2000, was the first to be enacted over a Presidential veto in the current administration. WRDA authorizes $23 million for some 900 projects around the country, but the Administration’s budget provides no funding for them.

Once again, the Bush Administration targets Amtrak for elimination. The FY 2009 budget request proposes to zero-out operating funds for Amtrak, in effect shutting down the national passenger railroad system. The budget request provides $525 million for Amtrak capital grants and $375 million for "Efficiency Incentive Grants" and "Intercity Passenger Rail Grants".

In aviation, the FY 2009 budget request proposes $2.75 billion for Airport Improvement Program grants, $1.15 billion less than the level authorized by H.R. 2881, the "FAA Reauthorization Act of 2007", as passed by the House, and $765 million less than the FY 2008 funding level. Under the airport grant formula, virtually every airport’s entitlement funding will be cut and small airports will be particularly hard hit by the Bush administration’s proposed cut.

For FY 2009, the Administration has slightly increased its aviation facilities and equipment program request to $2.72 billion, up from $2.46 billion in the FY 2008 request. While this is a step in the right direction, it is not enough to meet the FAA’s goal of technologically transforming the air traffic control system. The Administration’s own preliminary cost estimate for the Next Generation Air Transportation System (NextGen) is $3.246 billion, the funding level authorized by H.R. 2881.

In brief, the budget

Proposes $39.4 billion for the Federal-aid highways program, $800 million below the $40.2 billion funding level that is guaranteed by SAFETEA-LU. SAFETEA-LU originally guaranteed $41.2 billion in highway investments for FY09. The Administration proposes a $1 billion reduction due to Revenue Aligned Budget Authority (RABA) in addition to the $800 million cut to the highway program.

Proposes $10.136 billion for transit, $202 million below the $10.338 billion guaranteed by SAFETEA-LU.

Provides $2.75 billion for the Airport Improvement Program (AIP) - $1.15 billion less than the level authorized by H.R. 2881, The FAA Reauthorization Act of 2007 for FY09 and $765 million less than the FY08 enacted level of $3.515 billion.

Cuts funding for the Essential Air Service (EAS) program to $50 million, a cut of $77 million from the level authorized by Congress. Approximately one-half of the 141 communities that receive EAS funding would have to be dropped from the program.

Provides no funding for projects authorized in the Water Resources Development Act of 2007.

Terminates $133 million in Targeted Water Infrastructure projects.

Zeroes-out Targeted Watershed Grants.

Cuts in half funding for the US-Mexico Border Water Infrastructure Assistance program.

Reduces the Nonpoint Source Grants program by $16 million, even though nonpoint source water pollution is acknowledged by the EPA to be a major source of water pollution.

Cuts the Chesapeake Bay Program by $1.5 million, Long Island Sound Program by $4.5 million, Gulf of Mexico Program by $1 million, the San Francisco Bay Program by $4.9 million (zeroed out), and the Puget Sound Program by $18.7 million, compared with FY08 enacted amounts.

Significantly reduces the overall budget for the U.S. Army Corps of Engineers’ investigation and construction accounts by 46 percent and 27 percent, respectively.

Proposes the eighth straight year of cuts to the Clean Water State Revolving Fund – the primary federal program responsible for funding wastewater infrastructure projects throughout the nation. The President’s budget request of $555 million for FY09 is down 20 percent from last year’s appropriation of $689 million, and nearly 60 percent below the long-term average appropriation of $1.35 billion.

Zeroes-out operating funds for Amtrak, and instead proposes $275 million for "Efficiency Incentive Grants," which may or may not be made available to Amtrak for operating assistance. In addition, Amtrak capital funds would be reduced from $850 million in FY08 to $525 million in FY09, a cut of 38 percent.

Cuts public transportation and rail security funding by more than one-half. The administration’s request of $175 million is a fraction of the $1.2 billion authorized for these programs under the Implementing Recommendations of the 9/11 Commission Act of 2007.

Cuts Emergency Management Performance Grants (EMPG) by one-third, from $300 million to $200 million. The EMPG program is the Federal Government’s principal grant program to assist State and local emergency managers prepare for disasters. Further, the administration proposes to target the reduced funding to urban areas, leaving many small communities with no EMPG funding.

Cuts Economic Development Administration (EDA) funding by 60 percent, cutting these grants for economically distressed communities from $249 million to $100 million.