The The maritime industry is important to our nation's security and global competitiveness, and the Budget includes two initiatives to help revitalize this sector of our transportation system. first is a $1 billion, 10-year new Maritime Security Program, to help maintain a U.S.-flagged commercial fleet. This proposal will provide subsidies of $2.5 million per vessel in the first three years of the program, and $2 million per vessel for the remainder of the program. This is the first time the President's Budget has incorporated funding for a new maritime assistance program. The second initiative provides funds to leverage $1.5 billion in loans over two years (FY 1994-95) for shipbuilding and shipyard modernization. Also, $3.6 million for maritime research and development will be focused on intermodal connections to improve efficiency of cargo movement through ports, and environmental protection to reduce ocean pollution. For passenger rail, we propose a 15 percent increase in Amtrak operating and capital assistance, to $788 million. In addition, we would continue to support the Northeast Corridor Improvement Program at $200 million, and invest $100 million over two years in a joint venture for redevelopment of New York's Penn Station. We also propose $32.5 million for the Administration's Next Generation High-Speed Rail Program, which I will discuss further in the context of technology development. The budget also includes $15 million to continue funding for the Bureau of Transportation Statistics (BTS). In FY 1994-95, BTS will be completing studies of cargo flow and passenger travel. This data can help us shape the National Transportation System. Because investing in infrastructure is one of the President's key themes and priorities, DOT's budget continues to grow in this area, to a level of $28.2 billion in FY 1995, an increase of about $800 million over the levels enacted in the regular DOT Appropriations Act for FY 1994. This includes grants to State and local governments and the capital requirements of the Coast Guard and the FAA. The increase in highway funds helps States impacted by NAFTA. Not only does infrastructure spending account for the predominant portion of DOT's budget -- fully 71 percent but DOT's infrastructure budget accounts for over 83 percent of the total Federal budget for infrastructure. The President demonstrates his special commitment to our When we're talking about full funding, there has always been a definitional problem about what is meant by this. We're talking about the primary formula programs of ISTEA that affect every State and transit agency, and are the major areas of State and local decision making: O core categorical Federal-aid highway grants at $18.332 billion, up 4 percent over FY 1994 O mass transit formula grants at $2.865 billion, an We urge you to join us in focusing on these core programs. The budget does cut transit operating assistance 25 percent, but the capital portion of formula grants increases by 40 percent, to almost $2.3 billion. As a result, every transit agency in America will receive more dollars for transit in this budget. Our focus is on capital assistance because we think it is a more strategic investment. Transit capital assistance will allow modernization of equipment and more replacement of over-age vehicles. Newer vehicles are more efficient and require less maintenance, which in turn lowers operating costs, and are also more accessible and comfortable which can help increase ridership. We also believe that with low inflation and interest rates, transit authorities are experiencing more stable fuel and labor costs and lower debt service. All of these factors should help local areas to accommodate the reduction in operating assistance. Just to give you an example of the impact of this reduction in operating assistance, Atlanta will receive 18 percent more in formula funds and have to pick up only an additional 1 percent of its operating costs. The Federal share will drop from 3.5 percent to 2.6 percent. In New York City, it is estimated that the reduction in operating assistance equates to a two-cent fare increase. A one-half of one percent expense cut would more than cover this reduction. I would especially like to note that this budget funds a larger percent overall of all programs covered by ISTEA than ever before 94 percent, versus 81 percent in FY 1993. This means that States and local governments will have $3.6 billion more to spend on highways and transit than they did in FY 1993. Research and Development is an area of vital importance to the Nation's economic future and international competitiveness. For example, application of new technology at border crossings can help facilitate the flow of traffic. Within the government |