Financing.-65 Stat. 746 provides authority for the Secretary of Commerce to transfer $10 million from the Vessel Operations Revolving Fund, to the War Risk Insurance Revolving Fund if found necessary. No transfers have been made and none are anticipated in 1965 and 1966. Revenue in the fund is received from fees paid for the issuance of interim binders, premiums paid for builder's risk insurance, interest from investments and reimbursable charges from the Navy. Operating results.-Retained earnings amounted to $154 thousand in 1964 and are estimated at $112 thousand for 1965 and $251 thousand for 1966. Revenue, Expense, and Retained Earnings (in thousands of dollars) 1 Balances of selected resources are identified on the statement of financial condition. The Maritime Administration is authorized by 46 U.S.C. 1281-1294 to insure against loss or damage by marine war risks when it is found commercial insurance cannot be obtained on reasonable terms and conditions. Legislation will be proposed to continue this program which otherwise will expire in September 1965. The 1966 estimates assume this extension and project revenue expense and increases due to renewal of binders. thority to underwrite insurance has been extended at five year intervals since September 1950. Au Budget program.-As of June 30, 1964, the number of outstanding binders issued for the types of insurance covered by this fund were: 1,377 for hulls, 1,233 for protection and indemnity and 1,051 for insurance of crew life and personal effects. These binders which become effective on the outbreak of war cover approximately $13 billion of insurance. Second seamen's war risk insurance has been provided at the request of the Navy-without premium but on a reimbursable basis as required by 46 U.S.C. 1285 on 20 tankers for the Military Sea Transportation Services as of June 30, 1964. It is estimated that this service has provided a savings of $54 thousand. Total assets.. 3,250 3.402 3,516 3,767 3 1 3 3 3,513 3,764 Analysis of Government Equity (in thousands of dollars) Unpaid undelivered orders 1, Unobligated balance..... Total Government equity. 750-100-65-17 4. Highway research and development.-Provides for direct and contract research and development projects. Supervision is exercised in coordinating research carried out with 12% grant funds provided the States. 5. Highway safety. Provides leadership and support for highway safety activities designed to assist in reducing the large human and economic loss to the Nation through highway accidents. Support of the National Driver Register Service, the President's Committee on Traffic Safety, and the Interdepartmental Highway Safety Board is provided under this activity. 6. Training programs. Provides for recruitment, assignment to training courses, and the placement within the organization of college graduates. Object Classification (in thousands of dollars) Change in selected resources 1.. 558 3,091 1 Selected resources as of June 30 are as follows: Unpaid undelivered orders, 1963, $1.007 thousand; 1964, $1,565 thousand: 1965, $1,565 thousand; 1966, $1,565 thousand. Expenses for administration of the Federal-aid highway programs and for carrying on highway research are met by deductions from Federal-aid authorizations. Administrative services for other programs of the Bureau of Public Roads and for road construction programs of other Federal agencies are initially financed from this activity, and reimbursements of their pro rata share of administrative costs are collected periodically from these programs. Increases provide additional staff to permit more adequate field review of State highway department construction and right-of-way operations and finance expanded research in the highway safety area. 1. Engineering and administration.-Provides for direction and management of field operations and development of policies and procedures to implement highway legislation. The field operations are organized in 10 regions with division offices in each of the States, the District of Columbia, and Puerto Rico. These offices are responsible for administering the Federal-aid highway programs within the States; assisting in developing adequate State programs for highway planning, research, engineering, construction, and maintenance; and carrying out direct Federal highway projects. 2. Audits and investigations.-Provides for the audit of State claims; comprehensive review and evaluation of all activities and programs of the Bureau and the States; and investigation of allegations of irregularity, fraud, land speculation, collusion, impropriety of action, or any other violation of or noncompliance with laws, rules, and regulations. and long-range planning, broad programing in highway 3. Highway planning. Provides for systematic current development, and supervision of State planning accomplished with 12% grant funds. Total number of permanent positions.. Average GS salary_ FEDERAL-AID HIGHWAYS (TRUST FUND) For carrying out the provisions of title 23, United States Code, which are attributable to Federal-aid highways, to remain available until expended, [$3,648,250,000 $3,900,000,000, or so much thereof as may be available in and derived from the "Highway trust fund"; which sum is composed of [$1,417,464,169] $1,074,510,010, the balance of the amount authorized for the fiscal year [1963, and $2,225,413,315] 1964, and $2,819,556,045 (or so much thereof as may be available in and derived from the "Highway trust fund"), a part of the amount_authorized to be appropriated for the fiscal year [1964] 1965, [$3,442,489] $5,302,939 for reimbursement of the sum expended for the repair or reconstruction of highways and bridges which have been damaged or destroyed by floods, hurricanes, or landslides, as provided by title 23, United States Code, section 125, and [$1,930,027] $631,006 for reimbursement of the sums expended for the design and construction of bridges upon and across dams, as provided by title 23, United States Code, section 320. (Department of Commerce Appropriation Act, 1965; Federal-Aid Highway Act of 1964 (78 Stat. 397).) 1968 331,7 Grants are made to States for construction and improvement of Federal-aid highways. Authorizations are provided in the Federal-Aid Highway Act of 1956 and subsequent highway legislation to cover 90 percent of the costs of completing the 41,000-mile National System of Interstate and Defense Highways and to match State funds on a 50-50 basis for the primary, secondary, and urban programs. The Federal share of the cost is increased in those States with large areas of public domain. Payments to the States are made out of the Highway trust fund, into which are deposited certain percentages of tax receipts on motor fuel, tires and tubes, tread rubber, trucks, buses, trailers, and truck use. A supplemental appropriation of $250 million will be needed in 1965 to enable these payments to be made on a timely basis. The Federal-Aid Highway Act of 1961 authorized additional appropriations for the Interstate program, and also provided increased revenues to finance these increased authorizations. The Federal-Aid Highway Act of 1964 provides $1 billion for each of the years 1966 and 1967 to continue the Federal-aid primary, secondary, and urban programs. All authorizations are available for use in the year prior to the year for which authorized. A revised estimate of the cost of completing the Interstate System has been prepared. It is now estimated that the Federal share of the cost will be $42 billion, which is $5 billion more than previously estimated. Although revenues accruing to the trust fund under present tax rates would be sufficient to cover costs under the previous estimate, additional revenue will be necessary to meet the cost increase with a minimum of slippage in the scheduled completion date. It is proposed to provide this revenue by increasing taxes on highway users by approximately $200 million and extending the October 1, 1972, tax cutoff date. As of October 1, 1964, nearly 17,600 miles of the 41,000mile Interstate System were open to traffic. Approximately 75 percent (13,259 miles) was built or improved under the Federal-aid Interstate program, most of it under the 90 percent Federal, 10 percent State matching program launched in 1956. Toll roads, bridges, and tunnels incorporated in the System totaled 2,353 miles. In addition to the sections open to traffic, 6,059 miles were under construction with Interstate funds, and engineering and right-of-way acquisition was in progress on another 12,057 miles. Thus, some form of work was under way or completed on 35,688 miles of the 41,000-mile system-about 87 percent of the total system mileage. Construction projects involving 176,546 miles in the regular Federal-aid program (primary, secondary, and urban) have been completed since July 1, 1956, at a total cost of $12.65 billion, and contracts involving 21,424 miles at a cost of $3.13 billion were authorized or under way on October 1, 1964. In addition, $883 million of engineering and right-of-way acquisition work had been completed and $746 million was underway. Actual and estimated progress of Federal-aid programs are summarized in the following table: 1Annual authorizations become available for obligation not later than January 1 in the preceding year and are relief, |