Mr. Chairman, thank you for calling this hearing to discuss the Administration's proposed budget for the nation's mass transit needs in the next fiscal year. I welcome Federal Transit Administrator Dorn today and look forward to her testimony.
Mr. Chairman, I have strong doubts that the budget that the Administration has proposed will be sufficient to meet the needs of our nation's transportation infrastructure. The challenges posed by increased traffic congestion, poor air quality, and an aging road, rail and bridge network require a strong level of financial commitment from the federal government. Unfortunately, I cannot find that level of commitment in this proposal.
With regards to the Administration's 04 transit proposal, I am equally disturbed by the levels, Mr. Chairman. The Administration has proposed a FY 04 mass transit budget that is $7.2 billion. That is the same as the Administration's FY 03 budget request and the same as the FY 03 Omnibus Spending bill that recently passed both houses of Congress and was signed into law by the President. When you factor in the 2% rate of inflation that the Administration projects, it means that then the Administration is proposing a 2% cut for transit.
Additionally, there are other aspects of the Administration's transit proposal that I also find disturbing. For example, the Administration proposes a 50 percent cap on federal funding for New Starts projects. I am afraid that this will have a negative effect on states and localities that don't have the extra funding to pay for a New Starts rail projects. And because the Administration does not propose a similar cap on highway projects, states and localities might be forced to have to choose highway projects over mass transit projects.
I am also disturbed that the Administration proposes to end a key bus program - the bus discretionary program - and use part of the funding to help pay for New Starts. In these tough economic times, we should be doing all we can to provide opportunities for bus travel. By using some bus money for New Starts, we are robbing Peter to pay Paul.
Finally, I'd like to take a moment to mention Amtrak. The Administration proposes $900 million for Amtrak for FY 04. Amtrak's President David Gunn has said that if he does not get $1.8 billion for FY 04, Amtrak will shut down operations. We narrowly averted a shutdown in the last Congress, Mr. Chairman. It disturbs me that we are again playing a game of chicken with the fate of Amtrak in the balance. My state relies on Amtrak more than any other state. If there is a shutdown, it will result in not only the ending of Amtrak's operations in New Jersey, but the ceasing of many of the operations of New Jersey transit trains that share the same rail network. 75% of all NJ Transit commuters - 82,000 people - would have to find another way to get to work.
I understand that the Administration's proposal is subject to change. Congress will establish different and hopefully higher highway and mass transit levels for each of the next six years. I look forward to doing this as a member of the Banking Committee. Thank you.