President Bush released a $2.9 trillion budget for Fiscal Year (FY) 2008 on February 5 with the goal of restoring a balanced federal budget by 2012. Several items related to public works received budget requests that were lower than FY 2007 levels expected to be enacted by Congress when it completes its spending package (H.J. Res. 20). Congress will review the President’s budget requests over the next several months and determine the final amounts that they will authorize and appropriate to the various departments and programs. The following is an overview of budget proposals related to various public infrastructure and public works programs.
ENVIRONMENT
The Environmental Protection Agency announced a FY 2008 budget of $7.2 billion, including $687.5 million for clean water grants and $842.2 million for drinking water grants in the State Revolving Fund (SRF) programs. The Clean Water SRF proposal, identical to the President’s FY 2007 budget request for the program, represents a cut of about $412 million from the amount Congress is expected to provide in FY 2007. $831 million was provided for this program in FY 2006.
The budget allocated increased funds for compliance and called on strengthening public/private partnerships by requesting legislation to lift the cap on private activity bonds. Specifically, $103.3 million is requested for Hazardous Waste Financial Assistance grants and $49.5 million for the Brownfields grant program, and several watersheds received dedicated fund requests: $28.8 million for Chesapeake Bay, $1 million for Puget Sound, $4.5 million for the Gulf of Mexico, and 556.8 million for the Great Lakes.
TRANSPORTATION
President Bush’s FY 2008 budget proposes funding federal highway programs at SAFETEA-LU’s authorized levels, but cuts transit funding slightly below its authorized amount. For highways, the budget includes $39.6 billion, an increase from the current level of $39.1 billion. The proposal, however, eliminates $842 million in Revenue Aligned Budget Authority, known as RABA, an annual calculation based on motor fuel tax receipts. Transit would receive $9.4 billion, about $300 million below SAFETEA-LU’s authorization.
Overall, the budget calls for spending $67 billion in FY08 for programs administered by the US Department of Transportation, a $2.9 billion or five percent increase over levels expected to be enacted soon by an omnibus FY 2007 funding package.
The request proposes total transportation safety funding of $20.3 billion to fund aviation and surface transportation safety programs and initiatives. The budget also requests $175 million to cut traffic congestion by developing commuter traffic information systems, accelerating construction along trade and travel corridors and helping metropolitan areas test new solutions.
For Federal Aviation Administration programs, the proposed budget seeks $14.1 billion, a decrease from the likely FY 2007 level of $14.5 billion. The Airport Improvement Program, which provides construction grants for runway and airport improvements, would receive $2.8 billion, a decrease of more than $700 million from current levels.
Transportation Secretary Mary Peters noted that the budget request provides a framework for changing the current aviation financing system by tying what users pay to the costs of providing air traffic control and other services. She added that the request also includes $175 million for a 21st Century satellite navigation system to replace older air traffic control equipment and $900 million in additional air traffic control system upgrades. The Administration is expected to release its proposal to reauthorize federal aviation programs this month.
HOMELAND SECURITY AND EMERGENCY MANAGEMENT
President Bush’s FY 2008 budget request for the Department of Homeland Security (DHS) represents $46.4 billion in funding, which is an increase of 8 percent over the FY 2007 level – excluding funds provided in emergency supplemental funding. The request targets five areas that are essential to preserving freedom and privacy, meeting future challenges and fulfilling the mission of securing America. Those areas include: Protecting our nation from dangerous people; Protecting the nation from dangerous goods; Protecting our critical infrastructure; Building a nimble and effective emergency response system and culture of preparedness; Strengthening and unifying DHS operations and management.
Of particular concern to public works officials is the Department’s ability to deter and respond to acts of terrorism and other disasters. For these efforts, the President has requested the following funding amounts:
• An increase of $100 million that would provide for FEMA’s Vision Initiative which will enable the agency to intensify and speed the development of core competencies central to achieving disaster readiness, response and recovery. A combination of staffing increases, new technologies and targeted investment in equipment and supplies, will increase FEMA’s mission capacity in the areas of Incident Management, Operational Planning, Continuity Programs, Public Disaster Communications, Hazard Mitigation, Disaster Logistics, and Service to Disaster Victims. In addition, the requested increase will support FEMA’s plan to reform its approach to business operations and project management, enabling the development and integration of information systems, policies, internal controls, and processes necessary to effectively build, manage and support the agency’s core competencies to ensure mission success.
• A total of $3.2 billion will be available for state and local preparedness expenditures in FY 2008. Of this amount, $2.2 billion is requested for DHS to fund grant, training and exercise programs. In addition, and in coordination with the State Preparedness Grant Program, DHS will be co-administering the $1.0 billion Public Safety Interoperable Communications (PSIC) grant program, in partnership with the Department of Commerce*. Funds requested through these programs will (1) provide critical assistance to state and local homeland security efforts, (2) support resources available through other federal assistance programs that center on first responder terrorism preparedness activities, and (3) deliver ample support to all state and local first responder organizations to obtain the equipment, training, and other resources required to protect the public in the event of a terrorist attack or other major incident.
The overall FY 2008 budget request for FEMA stands at just over $8 billion, and reflects the Notice of Implementation of the Post-Katrina Emergency Reform Act (P.L. 109-295) and of Additional Changes Pursuant to Section 872 of the Homeland Security Act of 2002, provided to Congress on January 18, 2007. The Post-Katrina Act established new leadership positions and brings additional functions into FEMA. The department expects that the newly proposed FEMA structure will bolster the Department’s emergency preparedness, response, recovery and mitigation capabilities and facilitate and robust coordinated response to all hazards.
Other FY 2008 homeland security priorities include border protection, aviation and transportation, immigration, science, health, and law enforcement activities.
*In coordination with DHS’s State Preparedness Grant Programs, FEMA will be co-administering the $1 billion PSIC grant program in partnership with the Department of Commerce. The funding for this program was appropriated per The Deficit Reduction Act of 2005 from anticipated spectrum auction receipts, and therefore is not included as requested DHS budget authority.
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