SUBCOMMITTEE RECESS Senator ANDREWS. The committee stands in recess until Thursday, April 14, at 10 a.m., when we will hear the program of the Urban Mass Transportation Administration. Mr. HELMS. Thank you, Mr. Chairman. [Whereupon, at 12:15 p.m., Tuesday, April 12, the subcommittee was recessed, to reconvene at 10 a.m., Thursday, April 14.] DEPARTMENT OF TRANSPORTATION AND RELATED AGENCIES APPROPRIATIONS FOR FISCAL YEAR 1984 THURSDAY, APRIL 14, 1983 U.S. SENATE, SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS, Washington, D.C. The subcommittee met at 10 a.m. in room SD-192, Dirksen Senate Office Building, Hon. Mark Andrews (chairman) presiding. Present: Senators Andrews, D'Amato, and Bentsen. DEPARTMENT OF TRANSPORTATION URBAN MASS TRANSPORTATION ADMINISTRATION STATEMENT OF ARTHUR E. TEELE, JR., ADMINISTRATOR DR. PETER BENJAMIN, ASSOCIATE ADMINISTRATOR FOR TECHNICAL RAY SANDER, EXECUTIVE DIRECTOR KENT WOODMAN, CHIEF COUNSEL Senator ANDREWS. The Senate subcommittee will come to order. This morning we will hear the Urban Mass Transportation Administration. We have Mr. Teele with us this morning. Mr. Teele, welcome back. Let me tell you again, that we have had your statement, we have seen it. Be assured that it will be included in the record as though you read every word of it. You can summarize it or you can read every word of it if you're entranced with the sound of your voice this morning. When you finish your presentation we will go to oral questions. PREPARED STATEMENT Mr. TEELE. Thank you, Mr. Chairman. Senator ANDREWS. The prepared statement will be inserted in the record at this point. [The statement follows:] STATEMENT OF ARTHUR E TEELE, JR. Mr. Chairman and members of this Subcommittee, I am pleased to appear before you to present the Urban Mass Transportation Administration's (UMTA) budget proposal for fiscal year 1984 and to answer any questions you might have. Based on the new programs and authorizations contained in the recently enacted Surface Transportation Assistance Act of 1982, we have developed a budget that is responsive to the basic needs of mass transportation, yet strikes a balance with the important goal of containing the Federal budget deficit. In this statement and in my efforts to respond to your questions, I will also address the major concerns expressed by individual members of this Subcommittee and current issues surrounding mass transit activities. NEW LEGISLATION May I begin by first discussing the new mass transportation features of the recently enacted Surface Transportation Assistance Act of 1982 and UMTA's implementation of those features? This landmark legislation will have a positive, lasting impact on our Nation's public transportation systems and I believe will usher a new era for public transportation. For the first time, transit authorities have a dedicated source of Federal funding as a result of the new Mass Transit Account in the Highway Trust Fund. Not only does this assure a stable funding source for a large portion of the mass transportation program, but it also serves as a national model for the states and localities to use in developing their own dedicated source of funding. The new block grant program authorized by Section 9, with its statutory formula, provides greater predictability of annual funding for normal requirements of urbanized areas. This program permits maximum local flexibility and a streamlined grant process that minimizes paperwork. The formula to distribute these funds is an excellent compromise worked out by the Congress. It fairly distributes the funds on the basis of both bus and rail activities. While funds made available for planning purposes under Section 8 will provide for most comprehensive planning activities, Section 9 funds will also be available for the operators to supplement, as necessary, the basic Section 8 funds programmed for such purposes. Implementation I am pleased to advise you of the rapid progress we have made in implementing the new legislation. We are, as a matter of highest priority, committed to getting the new program funds obligated and into the local economic stream. Immediately following congressional passage of the legislation on December 23, 1982, we notified over 1,000 potential grantees of the significant features of the new legislation. On January 24, 1983, we published in the Federal Register a partial 65 percent apportionment of the FY 1983 contract authorization of $779 million to allow potential grantees to begin local programming activities necessary to utilize the funds. On February 2, 1983, slightly less than 30 days after signature of the law by the President, the implementing instructions were made available to potential grantees. In fact, within the first month, more than $85 million had been obligated. In addition to those actions I just listed, we are also undertaking a range of outreach-type activities to further assist grantees. Each of our regional offices has planned one or more sessions with various grantees to explain the principal features of the new legislation and answer questions. In mid-March, APTA held a one-day workshop at which UMTA made presentations and held question-and-answer sessions. Even at this point, UMTA staff are still appearing before a number of workshops and conferences to discuss the new legislation. As we outlined in our initial Federal Register apportionment, the remaining 35 percent of the Section 9A funding is being reserved while further data needed to complete the apportionment is developed and submitted by our grantees. We will apportion the final funding as soon as possible, but no later than July 1st. I think it is safe to say that this is the quickest that any new program has been implemented by UMTA. The American Public Transit Association (APTA) has publicly commended UMTA's efforts in implementing the new program, and I would |