Transportation Infrastructure:

Estimated State Funding Under the Transportation Empowerment Act

RCED-97-234R: Published: Sep 18, 1997. Publicly Released: Sep 18, 1997.

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John H. Anderson, Jr
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Pursuant to a congressional request, GAO provided the results of its analysis of what obligation authority the states might receive for highway programs under S. 667, the proposed Transportation Empowerment Act (TEA-2).

GAO found that: (1) there are three technical changes to TEA-2 that are necessary if the proposed legislation is to achieve its goal of a zero budget effect; (2) first, the Core Program financing rate differs from that proposed in TEA-2; (3) the estimates are based on a rate of 5 cents in fiscal year (FY) 2000; 4 cents in 2001; 3.5 cents in 2002, 2003, and 2004; and 3 cents thereafter, rather than 4 cents in FY 2000, 3 cents in 2001, and 2 cents thereafter; (4) second, the Highway Trust Fund financing rate in GAO's estimates is 3.5 cents in FY 2002, 2003, and 2004, and 3 cents thereafter; in the proposed TEA-2, the Highway Trust Fund Financing Rate is 2 cents in 2002 and remains at that level; (5) finally, the Infrastructure Special Assistance Fund Section B outlay estimates are net of transfers to the Aquatic Resources Trust Fund and the Land and Water Conservation Fund; and (6) the revenue and outlay estimates are based on the Congressional Budget Office's January 1997 baseline budget forecast.

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