$75.9 billion to maintain, $106.9 billion to improve

Federal Highway Administrator Mary Peters recently testified and called for annual funding of $75.9 billion to maintain highway conditions and $106.9 billion to improve them. Federal Transit Administration Deputy Administrator Robert Jamison also asked for more federal dollars. He said $14.8 billion is necessary to maintain transit and $20.6 billion to upgrade the system.

At a hearing before the House Highways and Transportation Subcommittee of the Transportation and Infrastructure Committee, Peters provided a preview of some of the details of the U.S. Department of Transportation's Conditions and Performance report, which she said should be released in October. Peters said the report will show that since the enactment of TEA-21 in 1998, combined investment in highway infrastructure, by all levels of government, has increased sharply. Total highway expenditures by federal, state and local governments increased by 25% between 1997 and 2000. This equates to a 14.4% increase in constant dollar terms. Highway capital spending alone rose to $64.6 billion in 2000, a 33.7% increase over 1997.

State government played a key role in providing these funding increases, according to Peters. The state share of highway capital investment rose from 1997 to 2000. In 1998, the state share of highway capital outlays was above 60% for the first time since 1959, and remained above that level through 2000.

Congress is expected to utilize the information provided by the Conditions and Performance Report in crafting its proposals to reauthorize the federal highway and transit laws.