Performance and Accountability
Transportation Challenges Facing Congress and the Department of Transportation Gao ID: GAO-07-545T March 6, 2007A safe, efficient, and convenient transportation system is integral to the health of our economy and quality of life. Our nation's vast transportation system of airways, railways, roads, pipelines, transit, and waterways has served this need, yet it is under considerable strain from (1) increasing congestion, (2) the large costs to maintain and improve it, and (3) the human cost of over 44,000 people killed and over 2.5 million injured each year in transportation-related accidents. The Department of Transportation implements national transportation policy and administers most federal transportation programs. For fiscal year 2008, the department has requested $67 billion to carry out these and other activities. While the department carries out some activities directly, such as employing about 15,000 air traffic controllers to make certain that planes stay a safe distance apart, it does not have direct control over the vast majority of activities that it funds, such as local decisions on the priority and placement of airports, public transit, and roads. In other cases, such as railways and pipelines, the infrastructure is owned and operated by industry. This statement presents GAO's views on major transportation challenges facing Congress and the department. It is based on GAO products, including recommendations made, and the products of others.
Financing mechanisms for the nation's transportation system are under stress. Our nation's transportation infrastructure is threatened by increasing demand for transportation services, and revenue from traditional funding mechanisms for the nation's highway and aviation systems may be unable to keep pace at current tax rates. In addition, freight traffic is projected to grow substantially, but current planning and financing mechanisms impede public strategies to address needs. Our nation's mobility is threatened because the nation's infrastructure is under great strain. Congestion across modes (e.g., aviation, highways, and rail) is expected to worsen. However, funding by mode and the lack of performance-related goals result in little assurance that funds are being channeled to the most critical mobility concerns and that intermodal approaches can be integrated into the transportation system. Improvements in transportation safety are needed to reduce the number of deaths and injuries from transportation accidents--about 95 percent of which occur on our nation's roads. Increases in congestion across modes as a result of population and economic growth could cause deterioration in transportation safety despite departmental and state efforts to reduce accidents. The transition from the current air traffic control system to a broader and modernized system will be one of the department's most complex undertakings. In previous years, FAA has faced systemic management and acquisition problems that led us to designate its air traffic control modernization program as high risk. While the agency has made significant progress in recent years, a key challenge going forward will be to institutionalize these improvements and to continually improve. In addition, the department and the transportation sector face persistent human capital challenges due to an impending shortage of skilled people to meet changing transportation needs. Furthermore, despite recent improvements in financial management, the department received a qualified opinion on its 2006 financial statements. Finally, the department is working to clarify its role in transportation security and emergency preparedness and response.
GAO-07-545T, Performance and Accountability: Transportation Challenges Facing Congress and the Department of Transportation
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Testimony:
Before the Subcommittee on Transportation, Housing and Urban
Development, and Related Agencies; Committee on Appropriations; House
of Representatives:
United States Government Accountability Office:
GAO:
For Release on Delivery Expected at 2:00 p.m. EST:
March 6, 2007:
Performance and Accountability:
Transportation Challenges Facing Congress and the Department of
Transportation:
Statement of Patricia A. Dalton, Managing Director:
Physical Infrastructure Issues:
GAO-07-545T:
GAO Highlights:
Highlights of GAO-07-545T, a testimony before the Subcommittee on
Transportation, Housing and Urban Development, and Related Agencies;
Committee on Appropriations; House of Representatives
Why GAO Did This Study:
A safe, efficient, and convenient transportation system is integral to
the health of our economy and quality of life. Our nation‘s vast
transportation system of airways, railways, roads, pipelines, transit,
and waterways has served this need, yet it is under considerable strain
from (1) increasing congestion, (2) the large costs to maintain and
improve it, and (3) the human cost of over 44,000 people killed and
over 2.5 million injured each year in transportation-related accidents.
The Department of Transportation implements national transportation
policy and administers most federal transportation programs. For fiscal
year 2008, the department has requested $67 billion to carry out these
and other activities.
While the department carries out some activities directly, such as
employing about 15,000 air traffic controllers to make certain that
planes stay a safe distance apart, it does not have direct control over
the vast majority of activities that it funds, such as local decisions
on the priority and placement of airports, public transit, and roads.
In other cases, such as railways and pipelines, the infrastructure is
owned and operated by industry.
This statement presents GAO‘s views on major transportation challenges
facing Congress and the department. It is based on GAO products,
including recommendations made, and the products of others.
What GAO Found:
Financing mechanisms for the nation‘s transportation system are under
stress. Our nation‘s transportation infrastructure is threatened by
increasing demand for transportation services, and revenue from
traditional funding mechanisms for the nation‘s highway and aviation
systems may be unable to keep pace at current tax rates. In addition,
freight traffic is projected to grow substantially, but current
planning and financing mechanisms impede public strategies to address
needs.
Our nation‘s mobility is threatened because the nation‘s infrastructure
is under great strain. Congestion across modes (e.g., aviation,
highways, and rail) is expected to worsen. However, funding by mode and
the lack of performance-related goals result in little assurance that
funds are being channeled to the most critical mobility concerns and
that intermodal approaches can be integrated into the transportation
system.
Improvements in transportation safety are needed to reduce the number
of deaths and injuries from transportation accidents”about 95 percent
of which occur on our nation‘s roads. Increases in congestion across
modes as a result of population and economic growth could cause
deterioration in transportation safety despite departmental and state
efforts to reduce accidents.
The transition from the current air traffic control system to a broader
and modernized system will be one of the department‘s most complex
undertakings. In previous years, FAA has faced systemic management and
acquisition problems that led us to designate its air traffic control
modernization program as high risk. While the agency has made
significant progress in recent years, a key challenge going forward
will be to institutionalize these improvements and to continually
improve.
In addition, the department and the transportation sector face
persistent human capital challenges due to an impending shortage of
skilled people to meet changing transportation needs. Furthermore,
despite recent improvements in financial management, the department
received a qualified opinion on its 2006 financial statements. Finally,
the department is working to clarify its role in transportation
security and emergency preparedness and response.
Photos: See PDF for Image.
Source: Photodisc and Corbis.
[Hyperlink, http://www.gao.gov/cgi-bin/getrpt?GAO-07-545T].
To view the full product, including the scope and methodology, click on
the link above. For more information, contact Patricia Dalton at (202)
512-2834 or Daltonp@gao.gov.
[End of section]
Mr. Chairman and Members of the Subcommittee:
We appreciate the opportunity to participate in this hearing today to
discuss transportation challenges facing Congress and the Department of
Transportation. These issues are important for three reasons. First,
the nation's economic vitality and its citizens' quality of life depend
significantly on the soundness, safety, and security of its vast
transportation system. This system fuels the nation's economic engine,
facilitating the movement of goods and people. Second, transportation
solutions are typically expensive, and the federal government's
financial condition and fiscal outlook are worse than many may
understand.[Footnote 1] This calls for a reexamination of the goals of
transportation policy, how we hold stakeholders accountable for
results, and how programs are financed. Finally, as an implementer of
congressional policy, the Department of Transportation must be a high-
performing agency--one that innovates, delivers results, is fiscally
prudent, and has a workforce that can meet 21st century
challenges.[Footnote 2]
My remarks today focus on four primary transportation challenges and
some that are continuing concerns. (See fig. 1.) Some are solely within
the Department of Transportation's purview; some require congressional
action as well. For the most part, these challenges are the ones that
we identified in 2003 as part of our series of reports of performance
and accountability challenges facing the federal government.[Footnote
3] This is not because little or no progress has been made. In many
cases there has been progress. Rather, it is because some of these
challenges--such as improving mobility and transportation safety--are
so vast, and the department's ability to address them is so indirect,
that years of focused efforts will be needed to see measurable
improvements. In addition to our completed work on these issues, we
have a body of ongoing work that should be of use to Congress and the
department as our country moves forward to improve the design of
transportation programs, delivery of services, and accountability for
results (See app. I and a list of related GAO products at the end of
this statement).
Figure 1: Major Challenges Facing Congress and the Department of
Transportation:
[See PDF for image]
Sources: PhotoDisc and GAO.
[End of figure]
My statement is primarily based on work that we have completed over the
past several years for Congress. We also reviewed assessments of the
Department of Transportation's activities prepared by its Office of
Inspector General and key departmental documents, such as its budget,
strategic plan, and performance and accountability report. Finally, we
discussed these issues with selected senior officials within the
department. We conducted our work in February 2007 in accordance with
generally accepted government auditing standards.
In summary:
* Financing mechanisms for the nation's transportation system are under
stress. The efficiency of the nation's transportation infrastructure is
threatened by increasing demand for transportation services, and
revenue from traditional funding mechanisms may be unable to keep pace
at current tax rates. Revenues to support the Highway Trust Fund--the
major source of federal highway and transit funding--are eroding, with
recent estimates forecasting a negative balance of more than $14
billion by the end of fiscal year 2012. For aviation, there is concern
that with the current funding system, the costs of providing and
modernizing air traffic control services might increase without a
corresponding increase in revenues collected from users. In the future,
freight traffic is projected to grow substantially, putting strain on
our nation's transportation systems, but current planning and financing
mechanisms impede public strategies to address needs, and industry's
ability to fund its capacity increases to meet growth is largely
uncertain. As a result of these concerns, we designated financing the
nation's transportation infrastructure as a high-risk issue this
year.[Footnote 4]
* The challenges in reforming transportation finance systems are
critical to maintaining and improving our nation's mobility. The
nation's infrastructure is under great strain; congestion across modes
is significant and expected to worsen. However, federal funding levels
are not linked to specific performance-related goals and outcomes,
resulting in limited assurance that federal funding is being channeled
to the nation's most critical mobility needs. Furthermore, federal
funding is often tied to a single transportation mode, which may limit
the use of federal funds to finance the greatest improvements in
mobility. It is also unlikely that mobility can be enhanced unless
major modes--air, highway, rail, transit, and water--are well
connected. However, intermodal connections, such as multimodal
passenger terminals and roads that link freight terminals and major
highways, are among the transportation system's weakest links.
The department is implementing a number of new initiatives aimed at
mitigating congestion, including providing funds to local governments
to test innovative ideas for curbing congestion and new funding for
projects that have national or regional benefits. In the aviation
arena, the Federal Aviation Administration (FAA) is leading a
multiagency effort to transform the air traffic control system in order
to safely handle the projected growth in the demand for air travel.
While these steps are encouraging, successfully addressing the nation's
mobility needs requires strategic and intermodal approaches and
solutions.
* Improving transportation safety is an imperative. Each year over
44,000 people are killed and over 2.5 million are injured in
transportation-related accidents. Of particular concern is the limited
progress in improving safety on our nation's roads, where about 95
percent of all transportation fatalities occur. Projected increases in
congestion across modes, as a result of population and economic growth,
could cause deterioration in transportation safety despite vigorous
efforts to reduce accidents. To address these problems, the department
is carrying out a number of initiatives related to improving aviation,
commercial motor carrier, highway, railroad, and pipeline safety.
However, certain areas require increased attention. In particular,
improvements in data, performance measures, and evaluations are needed
to determine whether programs are achieving intended results. For
example, agencies need to develop better measures of the direct results
of their efforts--such as safety improvements made as a result of
enforcement of safety standards--that contribute toward reductions in
accidents. This information can also hold agencies accountable for the
performance of their programs and support congressional oversight.
* FAA has worked with the Joint Planning and Development Office (JPDO)
to design and plan the Next Generation Air Transportation System
(NextGen) and will face challenges as it moves toward implementation
and integration of NextGen systems.[Footnote 5] This transition from
the current air traffic control system to the broader and modernized
NextGen system will be one of the Department of Transportation's most
complex undertakings. In previous years, FAA has faced systemic
management and acquisition problems that led us to designate its air
traffic control modernization program as high risk. FAA has made
significant progress in its handling of air traffic control
acquisitions, but a key challenge going forward will be to
institutionalize these improvements and to continuously improve in this
area. FAA and JPDO also need to provide Congress with a valid and
comprehensive estimate of the costs of the NextGen system, including
the identification and costs of necessary research, development, and
demonstration projects. One limited, preliminary estimate concluded
that FAA's budget under a NextGen scenario would average about $15
billion per year through 2025, or about $1 billion more annually (in
today's dollars) on average than FAA's fiscal year 2006 appropriation.
JPDO has estimated that failure to achieve a timely transition to
NextGen could result in a gap between the demand for air transportation
services and available capacity that could cost the U.S. economy
billions of dollars annually.
* In addition, the department and the transportation sector as a whole
face persistent human capital challenges that put their mission
performance at risk. Both face an impending shortage of people with the
skills and competencies they will need in the future. Furthermore,
while the department has made significant improvements in recent years
in its financial management, it received a qualified opinion on its
2006 financial statements because of material weaknesses related to
certain FAA activities. Finally, the department has retained some
responsibilities and involvement in transportation security and
emergency preparedness and response and is working with the Department
of Homeland Security to further clarify its role.
Background:
The safe, efficient, and convenient movement of people and goods
depends on a vibrant transportation system that meets those needs. Our
nation has built a vast transportation system of roads, airways,
railways, pipelines, transit, and waterways that facilitate commerce
and improve our quality of life. The flow of people and goods is
enormous: the nation moved about 5 trillion ton miles of freight and 5
trillion passenger miles of people in 2004.[Footnote 6] Spending for
commercial, personal, and government transportation represents about 11
percent of the gross domestic product. Yet there is a price for this
system:
* Increasing congestion on the ground and in the air delays the arrival
of people and freight at their destinations and imposes economic
losses. According to Department of Transportation estimates, congestion
costs Americans roughly $200 billion each year.
* The system is expensive to maintain and improve. Total federal, state
and local transportation expenditures are close to $200 billion
annually.
* There is a human cost: over 44,000 people are killed in
transportation-related accidents and over 2.5 million are injured each
year.
The transportation system is under considerable strain from these
factors, and this strain is expected to increase as the demand to move
people and goods grows resulting from population growth, technological
change, and the increased globalization of the economy. For example,
according to the Transportation Research Board, an expected population
growth of 100 million people could double the demand for passenger
travel by 2040. Moreover, this population growth will be concentrated
in certain regions and states, further intensifying the demand for
transportation in these areas.[Footnote 7]
The Department of Transportation implements national transportation
policy and administers most federal transportation programs. Its
responsibilities are considerable and reflect the extraordinary scale,
use, and impact of the nation's transportation system. The department
has multiple missions--primarily focusing on mobility and safety--that
are carried out by several operating administrations. (See table 1.)
Table 1: Primary Missions of the Department of Transportation:
Mission: Enhancing the quality and performance of the nation's highway
system and intermodal connectors;
Responsible entity within the department: Federal Highway
Administration.
Mission: Promoting the safety and efficiency of the national airspace
system;
Responsible entity within the department: Federal Aviation
Administration.
Mission: Supporting locally planned and operated public mass transit
systems;
Responsible entity within the department: Federal Transit
Administration.
Mission: Reducing motor vehicle crashes and their associated deaths and
injuries;
Responsible entity within the department: National Highway Traffic
Safety Administration.
Mission: Reducing commercial motor vehicle-related (large trucks and
buses) fatalities and injuries;
Responsible entity within the department: Federal Motor Carrier Safety
Administration.
Mission: Improving safety on the nation's rail systems and providing
grants for intercity passenger rail activities;
Responsible entity within the department: Federal Railroad
Administration.
Mission: Maintaining the safety and integrity of the nation's pipeline
transportation system and the safety of transporting hazardous
materials;
Responsible entity within the department: Pipeline and Hazardous
Materials Safety Administration.
Mission: Strengthening the nation's maritime transportation system,
including infrastructure, industry, and labor;
Responsible entity within the department: Maritime Administration.
Source: GAO presentation of Department of Transportation information.
[End of table]
For fiscal year 2008, the President's budget requested $67 billion to
carry out these and other activities. This budget request would support
about 55,000 full-time-equivalent employees.
The department carries out some activities directly, such as employing
more than 15,000 air traffic controllers to coordinate air traffic to
make certain that planes stay a safe distance apart. However, the vast
majority of its activities are not under its direct control. For
example, in recent years the Federal Highway Administration (FHWA) has
provided state governments nearly $34 billion each year to build and
improve roads and bridges and meet other transportation needs. However,
for the most part state and local governments decide which
transportation projects have high priority within their political
jurisdictions. Similarly, while the National Highway Traffic Safety
Administration (NHTSA) encourages the use of safety belts by the
motoring public as a means of saving lives and reducing injuries,
states determine whether and how to punish noncompliance. In other
cases--notably most freight railways and pipelines--the infrastructure
is owned and operated by private companies and the Department of
Transportation regulates the safety of their transportation operations.
Transportation Challenges Facing Congress and the Department of
Transportation:
In our view, Congress and the Department of Transportation face four
major transportation challenges--financing the nation's transportation
system, improving mobility, improving safety, and managing the
transformation of the air traffic control system. Another three issues
are of continuing concern: building human capital strategies, fostering
improved departmental financial management, and improving
transportation security and emergency preparedness and response.
Financing the Nation's Transportation System:
The efficiency of the nation's transportation infrastructure is
threatened by increasing demand for transportation services, and
revenue from traditional funding mechanisms may be unable to keep pace
at current tax rates. In addition, the nation's long-term fiscal
challenges[Footnote 8] will constrain decision makers' ability to use
other revenue sources for transportation needs. As a result of these
concerns, we designated financing the nation's transportation
infrastructure as a high-risk issue this year.
Revenues to support the Highway Trust Fund--the major source of federal
highway and transit funding--at the current fuel tax rate are eroding.
While receipts for the Highway Trust Fund, which are derived from motor
fuel and truck-related taxes, are growing, the federal motor fuel tax
rate of 18.3 cents per gallon has not been increased since 1993 and
inflation has eroded purchasing power. In addition, increased fuel
efficiency and the advent of alternative-fuel vehicles will further
erode trust fund receipts. While increases in vehicle travel will
increase fuel tax revenues, funding already authorized in recently
enacted highway and transit program legislation is expected to outstrip
the growth in trust fund receipts. According to recent estimates from
the Congressional Budget Office and the President's budget, the trust
fund balance will steadily decline and reach a negative balance of more
than $14 billion by the end of fiscal year 2012. (See fig. 2.) To help
remedy this situation, a commission--chaired by the Secretary of
Transportation--will report later this year on recommendations to place
the trust fund on a sustainable path. In addition, the Department of
Transportation's strategic plan suggests exploring tolling projects and
private sector involvement to address funding constraints--ideas that
some state and local governments are currently exploring.
Figure 2: Highway Trust Fund Year-End Balance Forecasts:
[See PDF for image]
Source: Congressional Budget Office and President's Budget.
[End of figure]
Federal aviation programs are also facing growing infrastructure
demands with constrained resources, and a disruption in the flow of
funds may jeopardize FAA's ability to carry out its improvement
programs. Demand for air travel has increased in recent years, with
over 740 million passengers flying in fiscal year 2006. Failing to meet
infrastructure challenges in aviation may have significant
consequences, since aviation is an integral part of the economy. To
meet anticipated increases in commercial aviation travel, FAA and
aviation stakeholders are developing new systems to modernize and
increase capacity, but it is uncertain whether the current funding
system can generate sufficient revenues to meet these budgetary
needs.[Footnote 9] FAA and some stakeholders have concerns that the
costs of providing and modernizing air traffic control services might
increase without a corresponding increase in revenues collected from
users. Under one preliminary estimate of modernization costs, FAA's
budget requirements would, on average, exceed fiscal year 2006
appropriation levels by approximately $1 billion a year (in today's
dollars) through 2025. To better connect FAA's revenues with the cost
of air traffic control services that it provides, the President's
budget for fiscal year 2008 has proposed replacing, in fiscal year
2009, FAA's current excise tax financing system, built largely around
purchases of tickets and aviation fuel, with a cost-based user fee
system. This new system would aim to recover the costs of providing air
traffic control services through user fees for commercial operators and
aviation fuel taxes for general aviation. However, some stakeholders
believe that the current structure has been effective in funding FAA
and can be successful in the future, although some modifications may be
necessary. In addition, the President's budget has proposed cutting and
reallocating federal funds for developing projects at the nation's
3,400 airports. FAA estimates the total cost for planned airport
projects eligible for funding at approximately $42 billion (in nominal
dollars) for fiscal years 2007 through 2011. FAA is also proposing that
Congress allow airports to collect more revenue from other sources to
help offset any reductions. Adding to uncertainty, the current excise
taxes that largely fund FAA revenue are scheduled to expire at the end
of September 2007, unless there is congressional action to renew them
or provide an alternative source of funding to avoid a lapse of revenue
in fiscal year 2008.
Freight traffic is projected to grow substantially, putting strain on
ports, highways, railroads, and airports, but current public planning
and financing impede strategies to address capacity investment, and
industry's ability to fund its capacity increases to meet growth is
largely uncertain.[Footnote 10] Freight mobility--the ability to move
goods--is a driver of economic growth, and increasing congestion and
unreliability of transportation systems can have severe economic
consequences. In the future, Congress is likely to receive funding
requests for additional freight projects and face decisions about the
federal role in the nation's freight infrastructure.
Improving Mobility through Intermodal and Modal Approaches:
While the federal government has made huge investments in our nation's
transportation infrastructure in the last 50 years, the expansion of
this infrastructure has not kept pace with needs and the system is
currently under great strain. Congestion across modes--estimated to
cost $200 billion per year--is significant and is projected to worsen.
For example, travel on roads is expected to increase by about 25
percent from 2000 to 2010, freight traffic is expected to increase by
92 percent from 2002 to 2035, and demand for air travel is expected to
climb by about 35 percent from 2006 to 2015. To help address congestion
concerns, the federal government spends billions of dollars each year
to build, maintain, operate, and improve the nation's aging
transportation system. As congestion increases, federal policymakers
face the challenge of ensuring that funds are used efficiently in order
to prevent congestion from overwhelming the system. However, currently
there is little assurance that the projects selected and funded best
meet national goals for meeting the nation's mobility needs.
The department and Congress have recently taken a number of new actions
to address this major threat to our nation's economic growth and
quality of life. In May 2006, the department announced a national
strategy that will provide $175 million to local governments to
demonstrate and test innovative ideas for curbing congestion. Certain
large-scale pilot projects would be chosen based on their sponsors'
willingness to implement a comprehensive congestion reduction strategy,
including congestion pricing,[Footnote 11] commuter transit services,
and commitments from businesses to expand flexible work schedules. The
strategy also includes initiatives to encourage private sector
investment in transportation infrastructure, promote the use of
operational and technological improvements, address major freight
bottlenecks, and accelerate major aviation capacity projects, among
other things. The department is also implementing a number of new
initiatives to mitigate congestion that were called for in the Safe,
Accountable, Flexible, Efficient Transportation Equity Act: A Legacy
for Users (SAFETEA-LU), including programs to allow states to monitor,
in real-time, traffic conditions on major highways and new funding for
projects that have national or regional benefits. In addition, SAFETEA-
LU established a commission that will report on ways to raise revenue
for highway and transit projects and also reduce the costs of
congestion. Finally, in the aviation arena, FAA is the primary
implementer of a multiagency effort to transform the air traffic
control system in order to safely handle projected growth in the demand
for air travel. I will further discuss this effort later in my
statement.
While these steps are encouraging, successfully addressing the nation's
mobility challenges requires strategic and intermodal approaches and
solutions.[Footnote 12] The nation faces a growing fiscal crisis that
challenges it to fundamentally reexamine existing government programs
and commitments and to make tough choices in setting priorities and
linking resources to results. In particular, the Highway Trust Fund--
the largest source of federal funding for transportation--was created
in 1956 for the purpose of constructing the interstate highway system
and, although that system is now complete, the basic construct of the
program, in terms of financing and delivery mechanisms, has not
changed. In addition, this and other federal transportation programs do
not have mechanisms to link funding levels with the accomplishment of
specific performance-related goals and outcomes related to mobility.
Most highway grant programs are apportioned by formula, without regard
to the needs or capacity of recipients. In addition, the preponderance
of evidence suggests that federal-aid highway grants have influenced
state and local governments to substitute federal funds for state and
local funds that otherwise would have been spent on highways. State and
local governments have broad flexibility to select most projects that
receive federal funding. As such, there is little assurance that the
projects selected and funded best meet national goals for addressing
the nation's mobility needs.[Footnote 13] Intercity passenger rail
service is also at a critical juncture, with the existing system in
poor condition and federal subsidies--over $1 billion annually in
recent years--not targeted to the greatest public benefits, including
congestion relief.[Footnote 14]
Furthermore, transportation programs and funding mechanisms are largely
stovepiped by modes of transportation. For example, while passenger and
freight travel occurs on all modes, federal funding and planning
requirements focus largely on highway, transit, and aviation passenger
travel. This framework makes it difficult for intermodal projects and
other modal projects (e.g., freight or passenger rail) to be integrated
into the transportation system. We have found, for example, that the
limited visibility that freight projects receive in the process for
planning and prioritizing transportation projects as well as the lack
of a comprehensive evaluation approach, such as a cost-benefit
framework, impedes the implementation of improvements to better ensure
that systemwide, multimodal solutions are considered and adopted where
appropriate. It is unlikely that mobility can be enhanced unless major
modes--air, highway, rail, transit, and water--are well connected.
However, intermodal connections, such as multimodal passenger terminals
and roads that link freight terminals and major highways, are among the
transportation system's weakest links.[Footnote 15]
The critical issues facing Congress and the department to effectively
address congestion problems and enhance the nation's mobility include:
* How narrowly or broadly should the federal role be defined?
* Should federal programs be more closely aligned with specific
national interests and purposes, such as interstate freight mobility?
* Should formulas be revised to better consider need, performance,
capacity, and effort by states and localities?
* Can intermodal solutions be effectively carried out within the
existing federal modal program framework, or is another model needed?
Finally, a high priority should be maximizing the benefits of federal
investments in transportation infrastructure and ensuring
accountability for results. Each year, FHWA distributes billions of
dollars--$34.2 billion in fiscal year 2006--to state governments for
projects aimed at improving the nation's highway systems.[Footnote 16]
However, we have found that often formal analyses are not used in
deciding among alternative projects, projects often do not meet
anticipated outcomes, and evaluations of outcomes are not typically
conducted.[Footnote 17] Furthermore, we have reported on the need for
improving accountability for results in FHWA's oversight of projects,
through goals and performance measures, for example.[Footnote 18] The
agency has made progress in this area, partly in response to mandated
improvements in SAFETEA-LU, but a continued focus on efforts to improve
accountability will be important. Finally, FAA provides funds to
airport operators to provide increased capacity at the nation's
airports and has estimated that the total cost for planned projects
eligible for federal grants for fiscal years 2007 through 2011 will be
$42 billion. While changes the Administration is proposing may reduce
the amount FAA provides, it will be essential to ensure that public
benefits from these investments are maximized.
Improving Transportation Safety:
Each year, tens of thousands of people are killed and millions are
injured in transportation accidents in the United States. In 2005
alone, over 44,000 people were killed and over 2.5 million were injured
in highway, aviation, railroad, transit, and pipeline
accidents.[Footnote 19] (See fig. 3.) Motor vehicle crashes, in
particular, exact an enormous personal and economic toll on this
country and are the leading cause of death for people aged 3 through
33. While transportation safety has improved considerably over the past
4 decades, in recent years, fatalities have plateaued.[Footnote 20]
Since the highest pay-off actions--such as improvements in vehicle
crashworthiness and increases in seat belt use--have occurred, future
progress will be more difficult. Of particular concern is the limited
progress in improving safety on our nation's roads, where about 95
percent of all transportation fatalities occur. Furthermore, motorcycle
fatalities have steadily increased over the past decade (to over 4,500
in 2005). While nonhighway modes of travel are much safer, safety in
these modes--such as aviation and rail--is also a major concern because
when accidents occur, they can have catastrophic consequences.
Projected increases in congestion across modes, as a result of
population and economic growth, could cause a deterioration in
transportation safety in the future despite vigorous efforts to reduce
accidents.
Figure 3: Fatalities by Transportation Mode, 2005:
[See PDF for image]
Source: Bureau of Transportation Statistics.
Note: Aviation figures are preliminary. Of the 602 aviation fatalities,
562 occurred in general aviation, which covers all civil aircraft not
flown by commercial airlines or the military.
[End of figure]
To address these problems, the department has designated improving
safety as its highest priority. Its efforts to improve surface
transportation safety are wide-ranging and include programs to change
driver behaviors--such as alcohol use and speeding--that cause
accidents; enhance motor vehicle safety; improve the safety of highway
and intersection infrastructure; and improve safety performance in the
motor carrier, railroad, transit, and pipeline industries. SAFETEA-LU
established an incentive grant program--which has been quite
successful--to encourage states to pass primary seat belt
laws.[Footnote 21] SAFETEA-LU also mandated a number of other promising
new initiatives, including a grant program for highway safety that
provides states with flexibility to target funds to their most critical
safety needs. Under this program, states are required to prepare
strategic highway safety plans, based on an analysis of safety data,
and to assess results. FAA focuses on improving safety in commercial
aviation, in which accidents are rare but have the potential for a
large loss of life, as well as in general aviation. The agency's safety
activities include air traffic control as well as certification and
inspection of various participants in the aviation industry, such as
commercial airlines, flight schools, and aircraft manufacturers.
While the department's many efforts to improve transportation safety
are to be commended, certain areas require increased attention. In
particular, improvements in data, performance measures, and evaluations
are needed to determine whether programs are achieving intended
results. For example, in reviewing certain programs of the Federal
Motor Carrier Safety Administration aimed at improving driver behavior,
we found that, in some cases, funds were being directed to initiatives
that lacked information on whether they worked and that evaluations of
program impacts were not planned for a number of years.[Footnote 22] In
reviewing a NHTSA grant program to help states improve the quality of
their traffic safety data, we found that the agency did not have an
effective process in place for monitoring progress.[Footnote 23] We
have also found that the effectiveness of the department's efforts to
oversee and improve the safety performance of airlines, truck
companies, pipeline companies, and railroads is unclear because of
limitations in data, performance measures, and evaluation.[Footnote 24]
For example, agencies need to develop better measures of the direct
results of their efforts--such as safety improvements made as a result
of enforcement of safety standards--that contribute toward reductions
in accidents. Performance measures and evaluations, supported by
appropriate data, provide managers with information on program results
that helps them make decisions that can improve performance, including
decisions to refine programs and adjust policies and priorities. This
information can also hold agencies accountable for the performance of
their programs and support congressional oversight. While agencies have
been making progress in this area in response to our recommendations as
well as some mandated improvements in SAFETEA-LU, it is important that
the department continue to improve information on the performance of
its safety programs to have greater assurance that they are producing
desired effects.
Furthermore, the department's ability to maintain the high level of
safety in the aviation industry will depend to a large extent on FAA's
ability to hire, train, and deploy its primary workforce, including
safety inspectors and air traffic controllers. FAA must overcome
several key challenges in this area. Planned changes in the agency's
oversight approach for air carriers will result in workload shifts for
its inspectors that will make it important for FAA to improve its
staffing process. In addition, the agency plans to hire almost 12,000
new air traffic controllers by 2015 to replace retiring controllers and
accommodate increases in air traffic and will need to train these new
controllers and incorporate them into its workforce.[Footnote 25]
Managing the Transition to the Next Generation Air Transportation
System:
The current approach to managing air transportation is becoming
increasingly inefficient and operationally obsolete. In 2003, Congress
authorized the creation of the JPDO, housed within FAA, to plan for and
coordinate the transition to NextGen, a complex and ambitious
multiagency undertaking that is intended to upgrade the system by 2025
to safely accommodate increased air traffic. As the primary implementer
of the transition to NextGen, FAA faces challenges in moving from
planning to implementation, including institutionalizing management
reforms it has made in recent years, obtaining financial and technical
resources and expertise, and collaborating with JPDO on planning
efforts.[Footnote 26] If FAA does not meet these challenges, the
realization of NextGen goals could be severely compromised. Without a
timely transition to NextGen capabilities, JPDO officials estimate a
future gap between the demand for air transportation and available
capacity that could cost the U.S. economy billions of dollars annually.
FAA has had systemic management and acquisition problems that have led
us to designate its air traffic control modernization program as high-
risk since 1995. However, FAA has made significant progress in recent
years. For example, FAA established the Air Traffic Organization to
operate and modernize the air traffic control system. This organization
is headed by a Chief Operating Officer who has focused on implementing
more businesslike management and acquisition processes to address cost,
schedule, and performance shortfalls that plagued air traffic control
modernization in the past. FAA has reduced organizational stovepipes,
increased accountability for costs, and begun investment reviews of
major acquisitions. FAA has reported meeting its acquisition cost and
schedule goals for the last 3 years.
JPDO has completed some initial planning necessary for implementing
NextGen. For example, JPDO has been developing an enterprise
architecture, or technical blueprint, that it expects will provide more
clarity regarding its expectations for NextGen, thereby facilitating
(1) coordination among JPDO's partner agencies[Footnote 27] and private
sector manufacturers, (2) alignment across agencies of research and
development activities with the blueprint, and (3) integration of
modernized systems in a way that minimizes overlap and duplication and
maximizes integration. As we reported in November 2006, a limited,
preliminary cost estimate concluded that FAA's budget under a NextGen
scenario would average about $15 billion per year through 2025, or
about $1 billion more annually (in today's dollars), on average, than
FAA's fiscal year 2006 appropriation.[Footnote 28]
Despite its progress, as the key implementer of NextGen, FAA needs to
institutionalize improvements made and continuously improve. For
example, we recommended that, before making decisions to fund systems
already in service, FAA re-evaluate projects' alignment with strategic
goals and objectives, but FAA's acquisition management guidance does
not clearly indicate if this is yet the case. The agency developed a
cost estimating methodology, but has yet to implement it, as well as a
framework for improving system management capabilities, but has yet to
institutionalize it. Additionally, we recently recommended that FAA
examine its strengths and weaknesses with regard to the technical
expertise and contract management expertise necessary to transition to
NextGen.[Footnote 29]
In response, FAA is considering convening a blue ribbon panel to make
recommendations, which we believe could help the agency begin to
address this concern.
JPDO faces challenges in coordinating agencies and continuing planning
necessary for implementation of NextGen. For example, work remains to
synchronize NextGen's enterprise architecture with the partner
agencies' planning documents and to keep the necessary research and
development on track. In addition, JPDO has yet to provide Congress
with a valid, comprehensive estimate of the costs to JPDO partner
agencies for the required research, development, systems acquisitions,
and systems integration.[Footnote 30] Finally, continuing collaboration
between JPDO and the Office of Management and Budget is needed to allow
the budget agency to make funding decisions based on a unified NextGen
program. The Congressional Research Service has pointed out that
Congress may examine options to align the budgets of the agencies
involved, given that JPDO does not have authority over funding,
personnel, and resources.[Footnote 31]
Building Human Capital Strategies:
The department and the transportation sector as a whole face persistent
human capital challenges that put their mission performance at risk.
Building human capital strategies that will allow the department and
the transportation sector to attract, hire, and retain an effective
workforce is an overarching issue that directly affects their ability
to respond to the challenges I have outlined today.[Footnote 32] In
particular, both are confronted with an impending shortage of skilled
people that threatens to have serious short-and long-term consequences.
For example, FAA alone expects to lose about 10,000, or 70 percent, of
its air traffic controllers over the next 10 years, mostly due to
retirement. For the department and the transportation sector as a
whole, the growing demand for transportation services will collide with
the reality of fewer people entering transportation-related fields.
Further complicating this shortage, changes in intergovernmental
responsibilities for delivering transportation services, new travel
patterns, advances in technology, and changed public expectations are
redefining the competencies and skills that are needed. Increasingly,
transportation will require more diverse, sophisticated management and
technical competencies than ever before.
The department has acknowledged that accomplishing its mission depends
on a strategic approach to human capital, and it is taking steps to
adopt such an approach. For example, in 2005, the agency piloted a
program to expand entry-level hiring in mission-critical occupations.
Also, in 2006, the agency increased its investments in human capital by
48 percent. Furthermore, the agency is working to align its human
capital initiatives to meet the President's Management Agenda. In the
department's current performance and accountability report, the Office
of Management and Budget awarded the department top marks for current
and prospective progress on its human capital initiative. However, the
department has not convinced its workforce about these results. In the
results of the 2006 federal employee human capital survey, the
employees scored the department lower in each of the four broad areas
than they did in 2004, when the survey was last conducted. Among the 36
federal agencies surveyed, the department finished in the bottom 10 for
talent management and job satisfaction and in the bottom 3 for
fostering a results-oriented performance culture and for leadership and
knowledge management. The department will need to take further actions
to address these issues, to improve its ability to respond to the
challenges it faces.
Across the transportation sector, transportation agencies are also
taking steps to improve human capital practices, by identifying
organizational and staff competency needs, as well as other gaps. They
are also beginning to investigate nontraditional sources for qualified
employees, such as highly qualified retirees from other organizations,
as well as ways to develop individual competencies by training the
existing workforce. While these efforts are promising, these agencies
vary widely, and although each has its own unique capabilities and
resources to address workforce needs, all have limited resources.
Furthermore, few have addressed their future workforce needs
comprehensively, which further complicates efforts to predict how many
people in specific job categories for each type of agency will be
needed in 5 or 10 years.[Footnote 33]
Fostering Improved Departmental Financial Management:
In 2003, we cited financial management as a major challenge facing the
Department of Transportation, specifically, identifying weaknesses in
the accuracy and reliability of FAA's financial information.[Footnote
34] In recent years, the department has made significant progress in
managing its finances, including substantial improvements in FAA's
financial management systems and practices. Improvements have included
installing a departmentwide financial system, including a new general
ledger system and integrated property systems at FAA, as well as
receiving unqualified opinions on its financial statements from
auditors for several fiscal years in a row. As a result of this
progress, in 2005, we removed FAA's financial management from our high-
risk list.
While progress has been made, work remains to ensure that the
Department of Transportation soundly manages its finances and accounts
for its use of federal and other funds. For fiscal year 2006, the
department received a qualified opinion on its financial statements and
the auditors cited two material internal control weaknesses.[Footnote
35] This qualified opinion resulted from a material weakness at FAA
relating to management's inability to support the accuracy and
completeness of a $4.7 billion account used for equipment and facility
projects. The department's Office of the Inspector General has reported
that correcting this deficiency will be critical for FAA to meet its
stated goal of sound financial management.[Footnote 36] The other
material weakness involves the financial management, reporting, and
oversight of the Highway Trust Fund agencies.[Footnote 37] During
fiscal year 2006, trust fund agencies implemented significant
improvements over several previously reported deficiencies. However,
weaknesses remained in several areas, including a lack of policies and
procedures to ensure more timely correction of any abnormal account
balances and concerns with the preparation and analysis of financial
statements. The Inspector General has listed several additional steps
to further improve oversight of the trust fund, including better
detection of improper payments and development of realistic project
cost estimates.[Footnote 38]
Improving Transportation Security and Emergency Preparedness and
Response:
The size and interconnectedness of the nation's transportation systems
make it highly difficult to secure against attack. In 2003, we cited
transforming transportation security as a major challenge facing the
Department of Transportation.[Footnote 39] In recent years, Congress
has shifted many of the department's security responsibilities to the
Department of Homeland Security, which now has primary responsibility
for securing the nation's transportation infrastructure, including
aviation, railroad, pipeline, and other systems. The Department of
Transportation has retained some involvement in securing transportation
infrastructure, in part, due to overlap with its safety efforts
involving freight, including the transportation of hazardous materials,
and passenger rail. In light of these changes, the department faces the
challenge of working with the Department of Homeland Security to
clarify its remaining role in securing the nation's transportation
infrastructure. The sheer number of stakeholders involved in securing
transportation modes can sometimes lead to communication challenges,
duplication of effort, and confusion about roles and responsibilities.
For example, the department's safety standards have at times conflicted
with the Department of Homeland Security's security standards. Both
departments have begun efforts to strengthen coordination and
cooperation to promote the security of the transportation system. The
departments have signed a memorandum of understanding to define broad
areas of responsibility for each department and to delineate specific
security related roles, responsibilities, resources, and commitments
for mass transit, rail, and other matters.[Footnote 40] However, the
departments' coordination efforts in this area are ongoing.
The department also coordinates with the Department of Homeland
Security in developing protective measures affecting transportation and
has statutory roles related to emergency preparedness, response, and
recovery. This encompasses programs like FHWA's Emergency Relief
program, which provides funding to states to repair or reconstruct
highways and roads damaged or destroyed in disasters.[Footnote 41]
During times of disaster, the department plays a significant role as
the lead and supporting agency for coordinating transportation support.
In this role, it is primarily responsible for coordinating the
provision of federal and civil transportation services, as well as the
recovery and restoration of transportation infrastructure, among other
things. In the future, the department will be tasked to further clarify
its roles and responsibilities with the Department of Homeland Security
in planning for and providing evacuation assistance. Catastrophic
disasters like Hurricane Katrina demonstrate the importance of
transportation preparedness and response to ensure the safe evacuation
of citizens in emergencies when state and local governments are
overwhelmed.[Footnote 42] Yet the department's responsibilities in
providing evacuation assistance have not been entirely clear. In
addition, despite recent progress by the federal government in
providing evacuation assistance, gaps remain. For example, the
Department of Homeland Security has not yet clarified, in the federal
government's plan for disaster response, the leading, coordinating, and
supporting federal agencies to provide evacuation assistance when state
and local governments are overwhelmed, and what their responsibilities
are. One White House report recommended that the Department of
Transportation be designated as the agency responsible for developing
the federal government's capability to carry out mass evacuations when
state and local governments are overwhelmed.[Footnote 43]
Mr. Chairman, this concludes my prepared statement. I would be pleased
to respond to any questions that you or other Members of the
Subcommittee might have.
GAO Contacts and Staff Acknowledgement:
For further information on this statement, please contact Patricia
Dalton at (202) 512-2834 or Daltonp@gao.gov. Individuals making key
contributions to this testimony were Matthew Cail, Judy Guilliams-
Tapia, Marietta Mayfield, Margaret Vo, and James Ratzenberger.
[End of section]
Appendix I: Ongoing GAO Work Related to Transportation Challenges:
Transportation financing.
Description (expected completion):
* Airport capital development funding (early 2007);
GAO contact: Gerald Dillingham (202) 512-2834 DillinghamG@gao.gov.
Description (expected completion):
* Federal role in overseeing and funding railroad bridge and tunnel
projects (mid 2007);
* GAO forum on transforming transportation policy (mid 2007);
GAO contact: JayEtta Hecker (202) 512-2834 HeckerJ@gao.gov.
Description (expected completion):
* The Federal Transit Administration's New Starts program (mid 2007);
GAO contact: Katherine Siggerud (202) 512-2834 SiggerudK@gao.gov.
Mobility.
Description (expected completion):
* The Federal Transit Administration's implementation and oversight of
the New Freedom program (TBD[A] );
GAO contact: Kay Brown (202) 512-2834 BrownKE@gao.gov.
Description (expected completion):
* Operational, capacity, and safety issues associated with the Airbus
A380 (early 2007);
GAO contact: Gerald Dillingham (202) 512-2834 DillinghamG@gao.gov.
Description (expected completion):
* Introduction of very light jets into the national airspace system
(mid 2007);
GAO contact: Susan Fleming (202) 512-2834 FlemingS@gao.gov.
Description (expected completion):
* Approaches to the efficient use of existing transportation
infrastructure (mid 2007);
* Freight bottlenecks (late 2007);
* Public-private partnerships in transportation (late 2007);
* Restructuring the federal-aid highway program (TBD[A] );
* Trends and performance of state contracting with the private sector
(TBD[A] );
GAO contact: JayEtta Hecker (202) 512- 2834 HeckerJ@gao.gov.
Description (expected completion):
* Port preparedness and mobility of goods during natural disasters
(early 2007);
* Barriers in addressing intermodal solutions to transportation
mobility challenges (mid 2007);
* Corporate Average Fuel Economy program policy options (mid 2007);
* Surface transportation compliance with the Americans with
Disabilities Act of 1990 (late 2007);
GAO contact: Katherine Siggerud (202) 512-2834 SiggerudK@gao.gov.
Safety.
Description (expected completion):
* The public safety impact of the Transportation Security
Administration's modifications to the prohibited items list (early
2007[B] );
GAO contact: Cathleen Berrick (202) 512-3404 BerrickC@gao.gov.
Description (expected completion):
* Implementation progress of the Uniform Carrier Registration program
(TBD[A] );
GAO contact: Kay Brown (202) 512-2834 BrownKE@gao.gov.
Description (expected completion):
* Operational, capacity, and safety issues associated with the Airbus
A380 (early 2007);
* Airport runway safety and the role of the Federal Aviation
Administration (late 2007);
GAO contact: Gerald Dillingham (202) 512-2834 DillinghamG@gao.gov.
Description (expected completion):
* Identification of motor carriers that pose a high risk for crashes
(mid 2007);
* Federal Motor Carrier Safety Administration identification and
monitoring of unsafe motor carriers (mid 2007);
GAO contact: Susan Fleming (202) 512-2834 FlemingS@gao.gov.
Description (expected completion):
* Safety standards for older drivers (early 2007);
* Emerging trends in and challenges to preventing highway fatalities
(late 2007);
GAO contact: Katherine Siggerud (202) 512-2834 SiggerudK@gao.gov.
Description (expected completion): Next generation air transportation
system; GAO contact: [Empty].
Description (expected completion):
* Survey of Joint Planning and Development Office stakeholders (mid
2007);
* The Federal Aviation Administration's air traffic control
modernization program (mid 2007);
GAO contact: Gerald Dillingham (202) 512-2834 DillinghamG@gao.gov.
Human capital strategies.
Description (expected completion): No ongoing work;
GAO contact: [Empty].
Financial management.
Description (expected completion):
* The Federal Aviation Administration's financial management efforts
(mid 2007);
GAO contact: Gerald Dillingham (202) 512-2834 DillinghamG@gao.gov.
Description (expected completion):
* Highway transit funding authority (mid 2007);
GAO contact: Katherine Siggerud (202) 512-2834 SiggerudK@gao.gov.
Description (expected completion): Security and emergency preparedness
and response; GAO contact: [Empty].
Description (expected completion):
* Research and development of aviation passenger checkpoint screening
technologies (mid 2007[B] );
* Planning and implementation efforts to ensure the security of
commercial vehicles (TBD[A,B] );
GAO contact: Cathleen Berrick (202) 512-3404 BerrickC@gao.gov.
Description (expected completion):
* Vulnerabilities of tank vessels to terrorist attack (early 2007[B] );
GAO contact: Stephen Caldwell (202) 512-9610 CaldwellS@gao.gov.
Description (expected completion):
* Port preparedness and mobility of goods during natural disasters
(early 2007);
* The Federal Transit Authority's emergency assistance for transit
agencies (TBD[A] );
GAO contact: Katherine Siggerud (202) 512-2834 SiggerudK@gao.gov.
Source: GAO.
[A] To be determined:
[B] This report may not be publicly available at this time because it
may contain security sensitive information.
[End of table]
[End of section]
Related GAO Products:
The following are the most pertinent GAO products to the topics
discussed in this hearing statement since our 2003 report on management
challenges facing the Department of Transportation. Other products can
be found at GAO's Website at www.gao.gov.
Financing the Nation's Transportation System:
Intercity Passenger Rail: National Policy and Strategies Needed to
Maximize Public Benefits from Federal Expenditures. GAO-07-15.
Washington, D.C.: November 13, 2006.
Freight Railroads: Industry Health Has Improved, but Concerns about
Competition and Capacity Should Be Addressed. GAO-07-94. Washington,
D.C.: October 6, 2006.
Aviation Finance: Observations on Potential FAA Funding Options. GAO-
06-973. Washington, D.C.: September 29, 2006.
National Airspace System Modernization: Observations on Potential
Funding Options for FAA and the Next Generation Airspace System. GAO-
06-1114T. Washington, D.C.: September 27, 2006.
Highway Finance: States' Expanding Use of Tolling Illustrates Diverse
Challenges and Strategies. GAO-06-554. Washington, D.C.: June 28, 2006.
Highway Trust Fund: Overview of Highway Trust Fund Estimates. GAO-06-
572T. Washington, D.C.: April 4, 2006.
Federal Aviation Administration: An Analysis of the Financial Viability
of the Airport and Airway Trust Fund. GAO-06-562T. Washington, D.C.:
March 28, 2006.
Freight Transportation: Short Sea Shipping Option Shows Importance of
Systematic Approach to Public Investment Decisions. GAO-05-768.
Washington, D.C.: July 29, 2005.
Highlights of an Expert Panel: The Benefits and Costs of Highway and
Transit Investments. GAO-05-423SP. Washington, D.C.: May 6, 2005.
Airport and Airway Trust Fund: Preliminary Observations on Past,
Present, and Future. GAO-05-657T. Washington, D.C.: May 4, 2005.
Highway and Transit Investments: Options for Improving Information on
Projects' Benefits and Costs and Increasing Accountability for Results.
GAO-05-172. Washington, D.C.: January 24, 2005.
Federal-Aid Highways: Trends, Effect on State Spending, and Options for
Future Program Design. GAO-04-802. Washington, D.C.: August 31, 2004.
Surface Transportation: Many Factors Affect Investment Decisions. GAO-
04-744. Washington, D.C.: June 30, 2004.
Improving Mobility through Intermodal and Modal Approaches:
Transportation-Disadvantaged Populations: Actions Needed to Clarify
Responsibilities and Increase Preparedness for Evacuations. GAO-07-44.
Washington, D.C.: December 22, 2006.
Federal Transit Administration: Progress Made in Implementing Changes
to the Job Access Program, but Evaluation and Oversight Processes Need
Improvement. GAO-07-43. Washington, D.C.: November 17, 2006.
Intercity Passenger Rail: National Policy and Strategies Needed to
Maximize Public Benefits from Federal Expenditures. GAO-07-15. November
13, 2006.
Freight Railroads: Industry Health has Improved, but Concerns about
Competition and Capacity Should Be Addressed. GAO-07-94. Washington,
D.C.: October 6, 2006.
Commercial Aviation: Programs and Options for the Federal Approach to
Providing and Improving Air Service to Small Communities. GAO-06-398T.
Washington, D.C.: September 14, 2006.
Public Transportation: New Starts Program Is in a Period of Transition.
GAO-06-819. Washington, D.C.: August 30, 2006.
Public Transportation: Preliminary Information on FTA's Implementation
of SAFETEA-LU Changes. GAO-06-910T. Washington, D.C.: June 27, 2006.
Intermodal Transportation: Challenges to and Potential Strategies for
Developing Improved Intermodal Capabilities. GAO-06-855T. Washington,
D.C.: June 15, 2006.
Commuter Rail: Commuter Rail Issues Should Be Considered in Debate over
Amtrak. GAO-06-470. Washington, D.C.: April 21, 2006.
Transportation Services: Better Dissemination and Oversight of DOT's
Guidance Could Lead to Improved Access for Limited English-Proficient
Populations. GAO-06-52. Washington, D.C.: November 2, 2005.
Intermodal Transportation: Potential Strategies Would Redefine Federal
Role in Developing Airport Intermodal Capabilities. GAO-05-727.
Washington, D.C.: July 26, 2005.
Federal-Aid Highways: FHWA Needs a Comprehensive Approach to Improving
Project Oversight. GAO-05-173. Washington, D.C.: January 31, 2005.
Highway and Transit Investments: Options for Improving Information on
Projects' Benefits and Costs and Increasing Accountability for Results.
GAO-05-172. Washington, D.C.: January 24, 2005.
Federal-Aid Highways: Trends, Effect on State Spending, and Options for
Future Program Design. GAO-04-802. Washington, D.C.: August 31, 2004.
Improving Transportation Safety:
Underinflated Tires in the United States. GAO-07-246R. Washington,
D.C.: February 9, 2007.
Rail Safety: The Federal Railroad Administration Is Taking Steps to
Better Target Its Oversight, but Assessment of Results is Needed to
Determine Impact. GAO-07-149. Washington, D.C.: January 26, 2007.
Aviation Safety: FAA's Safety Efforts Generally Strong but Face
Challenges. GAO-06-1091T. Washington, D.C.: September 20, 2006.
Natural Gas Pipeline Safety: Integrity Management Benefits Public
Safety, but Consistency of Performance Measures Should Be Improved. GAO-
06-946. Washington, D.C.: September 8, 2006.
Natural Gas Pipeline Safety: Risk-Based Standards Should Allow
Operators to Better Tailor Reassessments to Pipeline Threats. GAO-06-
945. Washington, D.C.: September 8, 2006.
Truck Safety: Share the Road Safely Pilot Initiative Showed Promise,
but the Program's Future Success Is Uncertain. GAO-06-916. Washington,
D.C.: September 8, 2006.
Rail Transit: Additional Federal Leadership Would Enhance FTA's State
Safety Oversight Program. GAO-06-821. Washington, D.C.: July 26, 2006.
Federal Motor Carrier Safety Administration: Education and Outreach
Programs Target Safety and Consumer Issues, but Gaps in Planning and
Evaluation Remain. GAO-06-103. Washington, D.C.: December 19, 2005.
Large Truck Safety: Federal Enforcement Efforts Have Been Stronger
Since 2000, but Oversight of State Grants Needs Improvement. GAO-06-
156. Washington, D.C.: December 15, 2005.
Highway Safety: Further Opportunities Exist to Improve Data on Crashes
Involving Commercial Motor Vehicles. GAO-06-102. Washington, D.C.:
November 18, 2005.
Aviation Safety: FAA's Safety Oversight System Is Effective but Could
Benefit from Better Evaluation of Its Programs' Performance. GAO-06-
266T. Washington, D.C.: November 17, 2005.
Aviation Safety: System Safety Approach Needs Further Integration into
FAA's Oversight of Airlines. GAO-05-726. Washington, D.C.: September
28, 2005.
Vehicle Safety: Opportunities Exist to Enhance NHTSA's New Car
Assessment Program. GAO-05-370. Washington, D.C.: April 29, 2005.
Highway Safety: Improved Monitoring and Oversight of Traffic Safety
Data Program are Needed. GAO-05-24. Washington, D.C.: November 4, 2004.
Managing the Transition to the Next Generation Air Transportation
System:
Federal Aviation Administration: Challenges Facing the Agency in Fiscal
Year 2008 and Beyond. GAO-07-490T. Washington, D.C.: February 14, 2007.
Next Generation Air Transportation System: Progress and Challenges
Associated with the Transformation of the National Airspace System. GAO-
07-25. Washington, D.C.: November 13, 2006.
Next Generation Air Transportation System: Preliminary Analysis of
Progress and Challenges Associated with the Transformation of the
National Airspace System. GAO-06-915T. Washington, D.C.: July 25, 2006.
Air Traffic Control Modernization: Status of the Current Program and
Planning for the Next Generation Air Transportation System. GAO-06-
653T. Washington, D.C.: June 21, 2006.
Next Generation Air Transportation System: Preliminary Analysis of the
Joint Planning and Development Office's Planning, Progress, and
Challenges. GAO-06-574T. Washington, D.C.: March 29, 2006.
National Airspace System: Transformation will Require Cultural Change,
Balanced Funding Priorities, and Use of All Available Management Tools.
GAO-06-154. Washington, D.C.: October 14, 2005.
National Airspace System: FAA Has Made Progress but Continues to Face
Challenges in Acquiring Major Air Traffic Control Systems. GAO-05-331.
Washington, D.C.: June 10, 2005.
Federal Aviation Administration: Stronger Architecture Program Needed
to Guide Systems Modernization Efforts. GAO-05-266. Washington, D.C.:
April 29, 2005.
Building Human Capital Strategies:
Aviation Security: TSA's Staffing Allocation Model Is Useful for
Allocating Staff among Airports, but Its Assumptions Should Be
Systematically Reassessed. GAO-07-299. Washington, D.C.: February 28,
2007.
Aviation Safety: FAA Management Practices for Technical Training Mostly
Effective; Further Actions Could Enhance Results. GAO-05-728.
Washington, D.C.: September 7, 2005.
Human Capital: Agencies Need Leadership and the Supporting
Infrastructure to Take Advantage of New Flexibilities. GAO-05-616T.
Washington, D.C.: April 21, 2005.
Federal-Aid Highways: FHWA Needs a Comprehensive Approach to Improving
Project Oversight. GAO-05-173. Washington, D.C.: January 31, 2005.
Fostering Improved Financial Management:
FAA Budget Policies and Practices. GAO-04-841R. Washington, D.C.: July
2, 2004.
Federal Aircraft: Inaccurate Cost Data and Weaknesses in Fleet
Management Planning Hamper Cost Effective Operations. GAO-04-645.
Washington, D.C.: June 18, 2004.
Improving Transportation Security and Emergency Preparedness and
Response:
Highway Emergency Relief: Reexamination Needed to Address Fiscal
Imbalance and Long-Term Sustainability. GAO-07-245. Washington, D.C.:
February 23, 2007.
Passenger Rail Security: Federal Strategy and Enhanced Coordination
Needed to Prioritize and Guide Security Efforts. GAO-07-459T.
Washington, D.C.: February 13, 2007.
Aviation Security: Progress Made in Systematic Planning to Guide Key
Investment Decisions, but More Work Remains. GAO-07-448T. Washington,
D.C.: February 13, 2007.
Transportation-Disadvantaged Populations: Actions Needed to Clarify
Responsibilities and Increase Preparedness for Evacuations. GAO-07-44.
Washington, D.C.: December 22, 2006.
Passenger Rail Security: Evaluating Foreign Security Practices and Risk
Can Help Guide Security Efforts. GAO-06-557T. Washington, D.C.: March
29, 2006.
Undeclared Hazardous Materials: New DOT Efforts May Provide Additional
Information on Undeclared Shipments. GAO-06-471. Washington, D.C.:
March 29, 2006.
Passenger Rail Security: Enhanced Federal Leadership Needed to
Prioritize and Guide Security Efforts. GAO-05-851. Washington, D.C.:
September 9, 2005.
General Aviation Security: Increased Federal Oversight is Needed, but
Continued Partnership with the Private Sector Is Critical to Long-Term
Success. GAO-05-144. Washington, D.C.: November 10, 2004.
Transportation Security: Federal Action Needed to Help Address Security
Challenges. GAO-03-843. Washington, D.C.: June 30, 2003.
Transportation Security Research: Coordination Needed in Selecting and
Implementing Infrastructure Vulnerability Assessments. GAO-03-502.
Washington, D.C.: May 1, 2003.
FOOTNOTES
[1] GAO, Fiscal Stewardship: A Critical Challenge Facing Our Nation,
GAO-07-362SP (Washington, D.C.: January 2007).
[2] GAO, 21st Century Challenges: Reexamining the Base of the Federal
Government, GAO-05-325SP (Washington, D.C.: February 2007).
[3] GAO, Major Management Challenges and Program Risks: Department of
Transportation, GAO-03-108 (Washington, D.C.: January 2003). See http:/
/www.gao.gov/pas/2005/dot.htm for a 2005 update.
[4] GAO, High-Risk Series: An Update, GAO-07-310 (Washington, D.C.:
January 2007).
[5] In 2003, Congress authorized the creation of the JPDO, housed
within FAA, to plan for and coordinate the transition to the Next
Generation Air Transportation System. It operates in conjunction with
seven partner agencies. NextGen involves airport-curb-to-airport-curb
modernization and encompasses security screening and environmental
issues, as well as projects to augment the global positioning system to
aid in approaches and landings and to provide new displays and data
processing for air traffic controllers.
[6] One ton-mile is the movement of one ton of freight for one mile.
One passenger mile is the movement of one person for one mile.
Statistics are for both interstate and intrastate travel.
[7] Transportation Research Board, Critical Issues in Transportation
(Washington, D.C.: 2006).
[8] GAO-05-325SP.
[9] GAO-07-310.
[10] GAO, Freight Railroads: Industry Health Has Improved, but Concerns
about Competition and Capacity Should be Addressed, GAO-07-94
(Washington, D.C.: Oct. 6, 2006) and Freight Transportation: Strategies
Needed to Address Planning and Financing Limitations, GAO-04-165
(Washington, D.C.: Dec. 19, 2003).
[11] Congestion pricing involves charging surcharges or tolls to
drivers who choose to travel during peak periods when their use of the
roads increases congestion.
[12] GAO-05-325SP.
[13] GAO, Highway and Transit Investments: Options for Improving
Information on Projects' Benefits and Costs and Increasing
Accountability for Results, GAO-05-172 (Washington, D.C.: Jan. 24,
2005); Federal-Aid Highways: Trends, Effect on State Spending, and
Options for Future Program Design, GAO-04-802 (Washington, D.C.: Aug.
31, 2004) and Surface and Maritime Transportation: Developing
Strategies for Enhancing Mobility: A National Challenge, GAO-02-775
(Washington, D.C.: Aug. 30, 2002).
[14] GAO, Intercity Passenger Rail: National Policy and Strategies
Needed to Maximize Public Benefits from Federal Expenditures, GAO-07-15
(Washington, D.C.: Nov. 13, 2006).
[15] See GAO-07-94; GAO-04-165; Intermodal Transportation: Challenges
to and Potential Strategies for Developing Improved Intermodal
Capabilities, GAO-06-855T (Washington, D.C.: June 15, 2006); and
Intermodal Transportation: Potential Strategies Would Redefine Federal
Role in Developing Airport Intermodal Capabilities, GAO-05-727
(Washington, D.C.: July 26, 2005).
[16] Once FHWA distributes funds to the states, funds are available to
be obligated by the states for construction, reconstruction, and
improvement of highways and bridges on eligible federal aid-highway
routes and for other purposes authorized in law.
[17] GAO-05-172.
[18] See GAO, Federal-Aid Highways: FHWA Needs a Comprehensive Approach
to Improving Project Oversight, GAO-05-173 (Washington, D.C.: Jan. 31,
2005). The Department of Transportation's Inspector General has also
found that a top management challenge for the department is making the
most of federal resources for surface infrastructure improvements
through continued emphasis on project oversight. See Office of the
Inspector General, U.S. Department of Transportation, Department of
Transportation's Fiscal Year 2007 Top Management Challenges, PT-2007-
004 (Washington, D.C.: 2006).
[19] In addition, according to the Bureau of Transportation Statistics,
in 2004, 769 people were killed in waterborne transportation accidents
and, in 2003, 4,666 were injured in these types of accidents. These are
the latest years for which these data are available. In 2003, the Coast
Guard, which is responsible for maritime safety, was transferred from
the Department of Transportation to the Department of Homeland
Security.
[20] Motor vehicle fatalities, adjusted for the level of travel, have
shown some improvement over the last decade, falling from 1.7 deaths
per 100 million vehicle miles traveled in 1995 to 1.5 in 2005.
[21] Primary enforcement seat belt laws allow police officers to stop
vehicles and write citations whenever they observe violations of safety
belt laws. Since SAFETEA-LU was signed into law, three states have
enacted primary seat belt laws, bringing the total number of states
with such laws to 25.
[22] GAO, Truck Safety: Share the Road Safely Pilot Initiative Showed
Promise, but the Program's Future Success Is Uncertain, GAO-06-916
(Washington, D.C.: Sept. 8, 2006) and Federal Motor Carrier Safety
Administration: Education and Outreach Programs Target Safety and
Consumer Issues, but Gaps in Planning and Evaluation Remain, GAO-06-103
(Washington, D.C.: Dec. 19, 2005). In addition, in reviewing NHTSA's
grants to states for reducing alcohol-impaired driving, the
department's Inspector General has found that the agency's ability to
gauge the effectiveness of these programs would be improved if states
had established performance measures. See PT-2007-004.
[23] GAO, Highway Safety: Improved Monitoring and Oversight of Traffic
Safety Data Program Are Needed, GAO-05-24 (Washington, D.C.: Nov. 4,
2004).
[24] GAO, Aviation Safety: FAA's Safety Oversight System Is Effective
but Could Benefit from Better Evaluation of Its Programs' Performance,
GAO-06-266T (Washington, D.C.: Nov. 17, 2005); Large Truck Safety:
Federal Enforcement Efforts Have Been Stronger Since 2000, but
Oversight of State Grants Needs Improvement, GAO-06-156 (Washington,
D.C.: Dec. 15, 2005); Natural Gas Pipeline Safety: Integrity Management
Benefits Public Safety, but Consistency of Performance Measures Should
be Improved, GAO-06-946 (Washington, D.C.: Sept. 8, 2006); and Rail
Safety: The Federal Railroad Administration Is Taking Steps to Better
Target Its Oversight, but Assessment of Results Is Needed to Determine
Impact, GAO-07-149 (Washington, D.C.: Jan. 26, 2007).
[25] GAO, Federal Aviation Administration: Challenges Facing the Agency
in Fiscal Year 2008 and Beyond, GAO-07-490T (Washington, D.C.: Feb. 14,
2007) and Aviation Safety: FAA's Safety Efforts Generally Strong but
Face Challenges, GAO-06-1091T (Washington, D.C.: Sept. 20, 2006).
[26] GAO, Next Generation Air Transportation System: Progress and
Challenges Associated with the Transformation of the National Airspace
System, GAO-07-25 (Washington, D.C.: Nov. 13, 2006).
[27] In addition to FAA, these agencies include the Departments of
Transportation, Commerce, Defense, and Homeland Security; the National
Aeronautics and Space Administration; and the White House Office of
Science and Technology Policy.
[28] This preliminary estimate--developed by the Research, Engineering
and Development Advisory Committee, an advisory committee to FAA--
indicates that costs for a status quo scenario (i.e., no NextGen) would
also be about $15 billion per year through 2025. This is due primarily
to the expectation that, under the NextGen scenario, capital
expenditures would be higher than under the status quo scenario in the
near term, but operations costs would be lower because of productivity
improvements in the longer term.
[29] GAO-07-25.
[30] GAO-07-490T.
[31] Congressional Research Service, Reauthorization of the Federal
Aviation Administration: Background and Issues for Congress
(Washington, D.C.: January 29, 2007).
[32] We added strategic human capital management as a governmentwide
high-risk area in 2001 because federal agencies lacked a strategic
approach to human capital management that integrates human capital
efforts with agency mission and program goals. See GAO-07-310.
[33] Transportation Research Board, The Workforce Challenge:
Recruiting, Training, and Retaining Qualified Workers for
Transportation and Transit Agencies, Special Report 275 (Washington,
D.C.: 2003).
[34] GAO-03-108.
[35] A material weakness can involve one or more of the following
categories: significant weakness of safeguards against waste, loss,
unauthorized use, or misappropriation of funds, property, or other
assets; violates statutory authority; results in a conflict of
interest; deprives the public of significant services, or seriously
affects safety or the environment; impairs the fulfillment of the
agency's mission, and/or would result in significant adverse effects on
agency credibility.
[36] Department of Transportation Office of the Inspector General, PT-
2007-004
[37] Agencies using Highway Trust Fund funds include the Federal
Highway Administration, National Highway Traffic Safety Administration,
Federal Transit Administration, Federal Railroad Administration,
Federal Motor Carrier Safety Administration, and Research and
Innovative Technology Administration.
[38] Department of Transportation Office of the Inspector General, PT-
2007-004.
[39] GAO-03-108.
[40] GAO, Passenger Rail Security: Federal Strategy and Enhanced
Coordination Needed to Prioritize and Guide Security Efforts, GAO-07-
459T (Washington, D.C.: Feb. 13, 2007).
[41] GAO, Highway Emergency Relief: Reexamination Needed to Address
Fiscal Imbalance and Long-Term Sustainability, GAO-07-245 (Washington,
D.C.: Feb. 23, 2007).
[42] GAO, Transportation-Disadvantaged Populations: Actions Needed to
Clarify Responsibilities and Increase Preparedness for Evacuations, GAO-
07-44 (Washington, D.C.: Dec. 22, 2006).
[43] White House Homeland Security Council, The Federal Response to
Hurricane Katrina: Lessons Learned (Washington, D.C.: Feb. 2006).
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