United States. Congress. House. Committee on Publi.

Transportation and environmental infrastructure needs : hearings before the Subcommittee on Investigations and Oversight of the Committee on Public Works and Transportation, House of Representatives, One Hundred Third Congress, second session, March 15, 1994 (transportation infrastructure), April 21 online

. (page 1 of 120)
Online LibraryUnited States. Congress. House. Committee on PubliTransportation and environmental infrastructure needs : hearings before the Subcommittee on Investigations and Oversight of the Committee on Public Works and Transportation, House of Representatives, One Hundred Third Congress, second session, March 15, 1994 (transportation infrastructure), April 21 → online text (page 1 of 120)
Font size
QR-code for this ebook


TRANSPORTATION AND ENVIRONMENTAL
INFRASTRUCTURE NEEDS

(103-62)



f 4. P 96/11:103-62 KINGS

ORE THE

transportation .nd En^ironnen^^InJr^.^-^^^j^^^^ ^^

INVESTIGATIONS AND OVERSIGHT

OF THE

COMMITTEE ON

PUBLIC WORKS AND TRANSPORTATION

HOUSE OF REPRESENTATIVES

ONE HUNDRED THIRD CONGRESS

SECOND SESSION



MARCH 15, 1994

(Transportation Infrastructiire)

APRIL 21, 1994

(Highway, Bridge, and Transit Infrastructure Needs)

APRIL 28, 1994

(Aviation Infrastructure Needs)

MAY 4, 1994

(Ports, Inland Waterways, Wastewater Treatment,

and Water Supply Infrastructure)

JULY 13, 1994

(Infrastructure Financing)



Printed for the use of the
Committee on Public Works and Transportation




& I



TRANSPORTATION AND ENVIRONMENTAL
INFRASTRUCTURE NEEDS

(103-«2)

HEARINGS

BEFORE THE

SUBCOMMITTEE ON
INVESTIGATIONS AND OVERSIGHT

OF THE

COMMITTEE ON

PUBLIC WORKS AND TRANSPORTATION

HOUSE OF REPRESENTATIVES

ONE HUNDRED THIRD CONGRESS
SECOND SESSION



MARCH 15, 1994

(Transportation Infrastructure)

APRIL 21, 1994

(Highway, Bridge, and Transit Infrastructure Needs)

APRIL 28, 1994

(Aviation Infrastructure Needs)

MAY 4, 1994

(Ports, Inland Waterways, Wastewater Treatment,

and Water Supply Infrastructvu-e)

JULY 13, 1994 .

(Infrastructure Financing)



Printed for the use of the
Committee on Public Works and Transportation




U.S. GOVERNMENT PRINTING OFFICE
83-681 WASHINGTON : 1994



COMMITTEE ON PUBLIC WORKS AND TRANSPORTATION

NORMAN Y. MINETA, California, Chair



JAMES L. OBERSTAR, Minnesota

NICK J. RAHALL II, West Virginia

DOUGLAS APPLEGATE, Ohio

RON DE LUGO, Virgin Islands

ROBERT A. BORSKI, Pennsylvania

TIM VALENTINE, North CaroUna

WILLIAM O. LIPESrSKI, Illinois

ROBERT E. WISE, Jr., West Virginia

JAMES A TRAFICANT, Jr., Ohio

PETER A. DeFAZIO, Oregon

JAMES A. HAYES, Louisiana

BOB CLEMENT, Tennessee

JERRY F. COSTELLO, Illinois

MIKE PARKER, Mississippi

GREG LAUGHLIN, Texas

PETE GEREN, Texas

GEORGE E. SANGMEISTER, Illinois

GLENN POSHARD, Illinois

DICK SWETT, New Hampshire

BUD CRAMER, Alabama

BARBARA-ROSE COLLINS, Michigan

ELEANOR HOLMES NORTON, District of

Coliunbia
LUCIEN E. BLACKWELL, Pennsylvania
JERROLD NADLER, New York
SAM COPPERSMITH, Arizona
LESLIE L. BYRNE, Virginia
MARIA CANTWELL, Washington
PAT DANNER, Missouri
KAREN SHEPHERD, Utah
ROBERT MENENDEZ, New Jersey
JAMES E. CLYBURN, South Carolina
CORRINE BROWN, Florida
NATHAN DEAL, Georgia
JAMES A. BARCIA, Michigan
DAN HAMBURG, CaUfomia
BOB FILNER, CaUfomia
WALTER R. TUCKER III, CaUfomia
EDDIE BERNICE JOHNSON, Texas
PETER W. BARCA, Wisconsin



BUD SHUSTER, Pennsylvania

WILLL\M F. CLINGER, Jr., Pennsylvania

THOMAS E. PETRI, Wisconsin

SHERWOOD L. BOEHLERT, New York

JAMES M. INHOFE, Oklahoma

BILL EMERSON, Missouri

JOHN J. DUNCAN, Jr., Tennessee

SUSAN MOLINARI, New York

WILLL^M H. ZELIFF, Jr., New Hampshire

THOMAS W. EWING, Ilhnois

WAYNE T. GILCHREST, Maryland

JENNIFER DUNN, Washington

Y. TIM HUTCHINSON, Arkansas

BILL BAKER, CaUfomia

MICHAEL A. "MAC" COLLINS, Georgia

JAY KIM, CaUfomia

DAVID A LEVY, New York

STEPHEN HORN, CaUfornia

BOB FRANKS, New Jersey

PETER I. BLUTE, Massachusetts

HOWARD P. "BUCK" McKEON, CaUfomia

JOHN L. MICA, Florida

PETER HOEKSTRA, Michigan

JACK QUINN, New York

VERNON J. EHLERS, Michigan



Subcommittee on Investigations and Oversight

ROBERT A BORSKI, Pennsylvania, Chair



BARBARA-ROSE COLLINS, Michigan,

Vice Chair
ROBERT E. WISE, Jr., West Virginia
LUCIEN E. BLACKWELL, Pennsylvania
LESLIE L. BYRNE, Virginia
JAMES A. BARCIA, Michigan
BOB FILNER, California
PETER W. BARCA, Wisconsin
GLENN POSHARD, IlUnois

(VACANCY)
NORMAN Y. MINETA, CaUfomia

(Ex Officio)



JAMES M. INHOFE, Oklahoma
JOHN J. DUNCAN, Jr., Tennessee
SUSAN MOLINARI, New York
WILLL\M H. ZELIFF, Jr., New Hampshire
WAYNE T. GILCHREST, Maryland
BILL BAKER, CaUfomia
BUD SHUSTER, Pennsylvania
(Ex Officio)



(II)



CONTENTS



Proceedings of: Page

March 15, 1994 1

April 21, 1994 173

April 28, 1994 469

May 4, 1994 685

July 13, 1994 1095

MARCH 16, 1994

Sxunmary of Subject Matter DC

TESTIMONY

Downey, Hon. Mortimer L., Deputy Secretary, U.S. Department of Transpor-
tation 5

Plusquellic, Hon. Donald L., Mayor, city of Akron, OH, on behalf of the
U.S. Conference of Mayors 30

Warren, Andrew, County Commissioner, Bucks County, PA, Chairman, Re-
build America Coalition, Washington, DC, accompanied by Robert J. Fogel,
Legislative Director, National Association of Counties, Washington, DC 23

PREPARED STATEMENT SUBMITTED BY MEMBER OF CONGRESS

Mineta, Hon. Norman Y., of California 4

PREPARED STATEMENTS SUBMITTED BY WITNESSES

Downey, Hon. Mortimer L 37

Plusquellic, Hon. Donald L 50

Warren, Andrew 145

SUBMISSIONS FOR THE RECORD

Downey, Hon. Mortimer L., Deputy Secretary, U.S. Department of Transpor-
tation, chart, "Comparative Growth of Government Transportation Expendi-
tures" 18

Plusquellic, Hon. Donald L., Mayor, city of Akron, OH, on behalf of the
U.S. Conference of Mayors:
Report of the U.S. Conference of Mayors — "Impact of Unfunded Federal
Mandates on U.S. Cities" 63

ADDITION TO THE RECORD
American Society of Civil Engineers, statement 150



APRIL 21, 1994

Summary of Subject Matter 161

TESTIMONY

Chamberlain, Ray, Vice President, Freight Policy, American Trucking Asso-
ciations, Inc 221



(HI)



IV

Page

Chargin, Anthony K., Deputy Associate Director for the Energy, Manufactur-
ing, and Transportation Technologies Program, Lawrence Livermore Na-
tional Laboratory (LLNA) 225

Desjardins, Robert J., Executive Vice President, Cianbro Corporation, rep-
resenting The Associated General Contractors of America 236

Francois, Francis B., Executive Director, American Association of State High-
way and Tramsportation Officials 225

Hartley, J. Douglas, Executive Director, West Virginia Public Transit Associa-
tion (WVPTA) on behalf of the Community Transportation of America,
accompanied by David Raphael, Executive Director, Community Transpor-
tation of America 208

Linton, Gordon J., Administrator, Federal Transit Administration, U.S. De-
partment of Transportation 182

McCormick, Eugene R., P.E., Senior Vice President, Parsons Brinkerhoff and
Douglas, Chairman, Highways Advisory Committee, American Road and
Transportation Builders Association 236

Musser, Thomas, President, Tri-M Corporation, Kennet Square, PA., on be-
half of the Associated Builders and Contractors, Inc 236

Slater, Rodney E., Administrator, Federal Highway Administration, U.S. De-
partment of Transportation 182

Voith, Richard, Member of the Board of Directors, Southeastern Pennsylvania
Transportation Authority (SEPTA) on behalf of the American Public Transit
Association 208

PREPARED STATEMENTS SUBMITTED BY MEMBERS OF CONGRESS

Blackwell, Hon. Lucien E., of Pennsylvania 182

Byrne, Hon. LesUe L., of Virginia 176

Mineta, Hon. Norman Y., of CaUfomia 180

PREPARED STATEMENTS SUBMITTED BY WITNESSES

Chamberlain, Ray 245

Chargin, Anthony K 258

Desjardins, Robert J 266

Francois, Francis B 274

Hartley, J. Douglas 360

Linton, Gordon J 365

McCormick, Eugene R 379

Musser, Thomas • 393

Raphael, David 401

Slater, Rodney E 412

Voith, Richard 429

SUBMISSIONS FOR THE RECORD

Francois, Francis B., Executive Director, American Association of State High-
way and Transportation Officials, Life Cycle Cost Survey, April 1994 321

Slater, Rodney E., Administrator, Federal Highway Administration, U.S. De-
partment of Transportation:

Press Release, April 26, 1994 204

Letter to Rep. Jerry F. CosteUo, July 5, 1994 205



APRIL 28, 1994

Stunmary of Subject Matter 457

TESTIMONY

Alterman, Stephen A., President, Air Freight Association 538

Hinson, David R., Federal Aviation Administrator, U.S. Department of Trans-
portation, accompanied by Cynthia Rich, Assistant Adininistrator for Air-
ports, and Martin Pozesky, Associate Administrator for System Engineering

and Development 474

King, Michael S., Freight and Transportation Manager for TRW Vehicle Safe-
ty Systems, and Chairman, Air and Business Transportation Committee,
National Industrial Transportation Leagfue 538



V

Page
Merlis, Edward A., Senior Vice President, External Affairs, Air Transport

Association of America 517

Olcott, John W., President, National Business Aircraft Association 517

Wilding, Jim, General Manager, Metropolitan Washington Airports Authority,

and First Vice-President, Airports Council International — North America .... 534

PREPARED STATEMENTS SUBMITTED BY MEMBERS OF CONGRESS

Mineta, Hon. Norman Y., of California 528

Traficant, Hon. James A., Jr., of Ohio 471

PREPARED STATEMENTS SUBMITTED BY WITNESSES

Alterman, Stephen A 549

Hinson, Hon. David R 555

King, Michael S 561

Merlis, Edward A 607

Olcott, John W 616

WUding, Jim 650

SUBMISSIONS FOR THE RECORD

Hinson, David R., Administrator, Federal Aviation Administration, U.S. De-
partment of Transportation:
"Satellite Navigation Concepts for Early Implementation," Second Edi-
tion, January 1994, brochure 481

Airports Designated to receive Military Airport Program Funds, chart 495

Designated Military Airport Program Locations, chart 496

Joint Use Airfields, chart 497

Remarks by Hon. Federico Pena, Secretary of Transportation, concerning

the National Transportation System, December 9, 1993 503

Status of the Wide Area Augmentation System (WAAS), supplement to
testimony 514

ADDITIONS TO THE RECORD

Haase, Capt. David J., Executive Central Air Safety Chairman, Air Line
Hlots Association, International, statement 659

Plavin, David Z., Director of Aviation, The Port Authority of New York
and Jersey, statement 664



MAY 4, 1994

Svunmaiy of Subject Matter 668

TESTIMONY

Bragger, A.E. 'Ted", President, A.E. Bragger Construction Company, War-
wick, RI, Representing the National Utility Contractors Association 790

Brescia, Chris, President, Midwest Area River CoaUtion (MARC) 2000 806

Guarino, Carmen F., Chairman WRc inc/Guarino Engineers, on behalf of
the Water Environment Federation 790

Lawrence, Berdon, President, Hollywood Marine, Inc., Chairman Inland Wa-
terways Users Board 806

McElwee, Scott, McElwee-Scarborough Construction, Gibbsboro, NJ, on behalf
of the Associated Builders and Contractors 790

Norris, Ronald L., P.E., Director of Transportation Policy for Mid-America
Regional Council, on behalf of the American Public Works Association 777

Palmer, R. Barry, Executive Director, DINAMO, The Association for the
Development of Inland Navigation in America's Ohio Valley 806

Perciasepe, Robert, Assistant Administrator, Office of Water, U.S. Environ-
mental Protection Agency 695

Savage, Roberta Haley, Executive Director and Secretary/Treasurer, Associa-
tion of State and Interstate Water Pollution Control Administrators
(ASIWPCA) 777

Stromberg, Erik, President, American Association of Port Authorities 802



VI

Page

Wagner, Edward O., Deputy Commissioner, New York City Department of
Environmentsd Protection, and Director, Bureau of Clean Water, New York,
NY, on behalf of the Association of MetropoUtan Sewerage Agencies
(AMSA) .„. 777

Zirschky, Dr. John H., Acting Assistant Secretary of the Army (Civil Works) .. 695

PREPARED STATEMENTS SUBMITTED BY MEMBERS OF CONGRESS

Menendez, Hon. Robert, of New Jersey 690

Mineta, Hon. Norman Y., of Cahfomia 706

PREPARED STATEMENTS SUBMITTED BY WITNESSES

Bragger, A.E., 'Ted" 817

Guarino, Carmen F 829

Lawrence, Berdon 837

McElwee, Scott 850

Norris, Ronald L., P.E 857

Palmer, R. Barry 872

Perciasepe, Robert 940

Savage, Roberta Haley 956

Schrodt, Frederic C. (submitted by Chris Brescia) 984

Stromberg, Erik 1041

Wagner, Edward O 1048

Zirschky, Dr. John H 1056

SUBMISSIONS FOR THE RECORD

Brescia, Chris, President, Midwest Area River Coalition (MARC) 2000, "The
Economic Activity Associated with the Commercial Utilization and Mainte-
nance of the Upper Mississippi River-Illinois Waterway, Price Waterhouse,

April 1994, report 994

Palmer, R. Barry, Executive Director, DINAMO, The Association for the
Development of Inland Navigation in America's Ohio Valley:
Ohio River Navigation System, DINAMO Modernization Program, map ... 878

Benefits of Ohio Valley Lock and Dam Improvement Projects, chart 879

Measures of Economic Activity Associated with Ohio River System Water-
borne Commerce: 1984, chart 880

DINAMO Economic Reports 882

The Impact of the Barge Fuel Tax at 50 Cents Per Gallon, Mercer

Management Consulting, May 1993 908

Perciasepe, Robert W., Assistant Administrator, Office of Water, U.S. Envi-
ronmental Agency:

Interagency Working Group on the Dredging Process, charter 716

Responses to post hearing questions from Rep. Borski 744

Responses to post hearings questions from Rep. Menendez 766

Savage, Roberta Haley, Executive Director and Secretary/Treasurer, Associa-
tion of State and Interstate Water Pollution Control Administrators
(ASIWPCA):

Clean Water Act Reauthorization, The States' Perspective, report 965

Water Resources Update, Universities Council on Water Resources, The
Clean Water Act Revised:
AccompUshments and Issues for Reauthorization, Issue 94, Winter
1994.*
National Governors' Association, State Package of Clean Water Act
Amendments.*
Zirschky, Dr. John H., Acting Assistant Secretary of the Army, Civil Works:
Status of Activities for Construction of Montgomery Point Lock and Dam

Project, information paper. May 5, 1994 724

Letter to Sen. David Pryor of Arkansas, February 4, 1994 725

U.S. Army Corps of Engineers Support to the Military Use of the Intra-
coastal and Inland Waterway System (IWS), information paper. May

5, 1994 727

Responses to post hearing questions from Rep. Borski and Rep. Inhofe 731



"Retained in subcommittee file.



VII

Page
ADDITIONS TO THE RECORD

Cheatham, Glen L., Jr., Branch Manager, State of Oklahoma, Department
of Transportation, letter to Rep. Borski, April 18, 1994 1072

Meibergen, Lew, Johnston's Port 33, Inc., letter to Rep Borski, April 21,

1994 1075



JULY 13, 1994

Summary of Subject Matter 1077

TESTIMONY

Agriss, Teny, President, New York State's Environmental Facilities Corpora-
tion, President, Council of Infrastructxire Financing Authorities (CIFA) 1143

Allen, William H., Principal, Dewberry & Davis, Fairfax, VA, on behalf of
American Road & Transportation Builders Association 1153

Bendel, Joseph, CouncU Member, McKeesport, PA, President, Pennsylvania
League of Cities, representing the National League of Cities 1143

Cook, Michael B., Ehrector, Office of Wastewater Management, Office of
Water, U.S. Environmental Protection Agency 1100

Flanagan, Daniel V., Jr., Chairman, Infrastructiire Investment Commission ... 1122

Foster, Richard L., Region 2 Vice President and Chairman, Government Rela-
tions Committee, National Utility Contractors Association 1153

Garvey, Jane F., Deputy Federal Highway Administrator, Federal Highway
Administration, co-chair, Innovative Financing Task Force, U.S. Depart-
ment of Transportation 1100

Giglio, Joseph M., Chairman of the Board, Apogee Research, Inc 1122

Rohatyn, Felix G., Senior Partner, Lazard Freres & Co., former Chairman,
Municipal Assistance Coiporation 1122

Stoll, Loviise F., Assistant Secretary for Budget, co-chair, Innovative Financ-
ing Task Force, U.S. Department of Transportation 1100

Ziccardi, Anthony V., President K. HoAmanian Co. of South Jersey, on behalf
of the National Association of Home Builders 1153

PREPARED STATEMENT SUBMITTED BY MEMBER OF CONGRESS

Blackwell, Hon. Lucien E., of Pennsylvania 1097

PREPARED STATEMENTS SUBMITTED BY WITNESSES

Agriss, Terry 1167

Allen, William H 1172

Bendel, Joseph 1181

Cook, Michael B 1193

Flanagan, Daniel V., Jr 1211

Foster, Richard L 1235

Garvey, Jane F 1267

GigUo, Joseph M 1279

Rohatyn, Felix G 1291

StoU, Louise F 1299

Ziccardi, Anthony V 1309

SUBMISSIONS FOR THE RECORD

Agriss, Terry, President, New York State's Environmental Facilities Corpora-
tion, President, Council of Infrastructure Financing Authorities (CIFA),
responses to post hearing questions from Rep. Borski 1340

Allen, William H., Principal, Dewberry & Davis, Fairfax, VA, on behalf of
American Road & Transportation Builders Association, responses to post
hearing questions from Rep. Borski 1371



VIII

Page

Bendel, Joseph, Council Member, McKeesport; PA, President, Pennsylvania
League of Cities, representing the National League of Cities, "City Fiscal
Conditions in 1994, by Michael A. Pagano, Professor of PoUtical Science,
Miami University, and Research Fellow, Center for Public Management
and Regional Affairs, Research Report of the National League of Cities,
July 1994*

Cook, Michael B., Director, Office of Wastewater Management, Office of
Water, U.S. Environmental Protection Agency, responses to post hearing
questions from Rep. Borski 1343

Flanagan, Daniel V., Jr., Chairman, Infrastructure Investment Commission:
"Financing the Future," Report of the Commission to Promote Investment

in America's Infrastructure.*
Responses to post hearing questions from Rep. Borski 1357

Foster, Richard L., Region 2 Vice President and Chairman, Government Rela-
tions Committee, National Utility Contractors Association, excerpt from
"America's Environmental Infrastructure: A Water and Wastewater Invest-
ment Study", Chapter IV, Policies to Address Estimated Needs 1248

Responses to post hejiring questions from Rep. Borski 1373

Garvey, Jane F., Deputy Federal Highway Administrator, Federal Highway
Administration, cochair. Innovative Financing Task Force, U.S. Department
of Transportation, responses to post hearing (questions from Rep. Borski 1375

Rohatyn, Felix G., Senior Partner, Lazard Freres & Co., former Chairman,
Municipal Assistance Corporation, responses to post hearing questions from
Rep. Borski 1362

Stoll, Louise F., Assistant Secretary for Budget, cochair, Innovative Financing
Task Force, U.S. Department of Transportation 1375

Ziccardi, Anthony V., President, K. Hovnanian Co. of South Jersey, on behalf
of the National Association of Home Builders, responses to post hearing
questions 1365

* Retained in subconunittee file.

ADDITIONS TO THE RECORD

Airports Council International — North America, statement 1319

Ellis, Jerry A., Director of Freight Mobility and Economic Partnerships,

Washington State Department of Transportation, statement 1326

Poirier, Bernard W., remarks to the Fall Conference of the Urban Land

Institute, Boston, MA, November 4, 1993 1332



IX



'HS"*' r^i'trSSrz— ^•^' ^"8« °^ EtprtBttrtatiueH HXriSr
:;?:§-Z~ §?!rJ§&i- committee on public works H,Ts^r5

E°Z-°" Eti'HHE!l» AND TRANSPORTATION SBirrH

'n^T^ HT'i?5'"'H<iTc«.«~ SUITE 2165 RAYBURN HOUSE OFFICE BUILDING Ili'c«i»"Sr^

;:3"" ri^'yTS T'". ! ' "" Washington, oc 2051 b wvilti^TC.-

rH''.^'"~ P02)22B-««72 ESwSSST^

Hr ;°\" March 14, 1994 E'JSy^r*

TO: Members, Subcommittee on Investigations and Oversight

FROM: Subcommittee Staff

RE: Summary of Subject Matter for Investigations and Oversight

Subcommittee Overview Hearing on Infrastructure Needs, Tuesday,
March 15, 1994, 9:30 am. Room B-352 Raybum House Office
BuOding

INTRODUCTION

The Subcommittee on Iitvestigations and Oversight has scheduled a series of
hearings to examine our nation's infrastructure needs, review existing funding levek and
projected funding for the future, and consider alternative financing methods. The
purpose of these hearings is to establish a comprehensive and up-to-date record of needs
and available funding to provide a basis for critical infrastructure investment decisions.

The first hearing in this series will provide a general overview of the nation's
infrastructure needs. Subsequent hearings will provide a more in-depth examination of
infrastructure needs in the areas of highways and bridges, transit, aviation, and water
resources as well as innovative and alternative financing proposals.

The remainder of this memorandum will provide background information on
historical spending patterns for infrastructure investment, our nation's infrastructure
needs, and funding levels for infrastructure improvemenu.



2
BACKGROUND

Investment in our nation's infrastructure - roads, bridges, transit systems, airports,
water supply systems, wastewater treatment facilities, railroads - is the key to our
nation's ability to compete in the global economy of the 21st century. The issue
becomes increasingly important as our national economy becomes increasingly
intertwined with the global economy.

The importance of infrastructure investment was recognized by the massive
investment in the Interstate Highway program, by the Intermodal Surface Transportation
Efficiency Act of 1991, which reshaped the federal transportation program to meet the
needs of the 1990s, by the Airport and Airways Development program, by the Qean
Water Act's funding of environmental infrastructure, and by the Water Resources
Development Act of 1986, which reshaped our nation's commitment to port and inland
waterways development.

These legislative commitments to infrastructure development, however, have
frequently been reversed by budgetary derisions which severely reduce the level of
investment that had been authorized.

Even as a global economy comes nearer to becoming a reality, our record of
infrastructure investment has been uneven at best. According to Congressional Budget
Office data, in the 1950s and 1960s, most federal infrastructure investment was devoted
to highways, aviation, and water resources. During the 1970s, the priority shifted to
wastewater treatment, water supply, and transit. Since the 1980s, the priority has shifted
back to highways and aviation again.



XI



3
Numerous studies have shewn that infrastructure investment promotes economic
growth, enhances productivity, creates jobs, improves the environment, and inaeases our
abflity to compete in the global economy. The Committee on PubUc Works and
Transportation has consistently backed investment in infrastructure at fully authorized
levels. In the Fiscal Year 1995 Views and Estimates Report filed with the House Budget
Committee, the Committee wrote: "It is...in our national interest to step up investment in
our physical infrastructure to improve our productivity and to make sure that we enhance
our competitiveness in the world market."

TRFNDS IN PI mi IC INFRA« n-RI im IRK SPENDING

Federal investment in infrastructure has decreased over time. The Congressional
Budget Office reported last year that the total federal investment in infrastructure (in
constant 1990 dollars) increased steadily from $11.6 billion in 1956 to $43.9 billion in
1980. Thereafter, however, investment dropped so that, by 1992, federal spending on
infrastructure was $39.9 bUlion - a decrease of 9.1 percent over 12 years. (See
Attachment 1 for a breakdown of public spending for infrastructure, 1956-1990.)

Our late of infrastructure investment, as a percentage of all federal spending, has
also declined sharply. Infrastructure made up about 3.1 percent of the federal budget in
1956. That percentage more than doubled to 6.3 percent by 1965. However, by 1992
only 3.0 percent of total federal outlays were devoted to infrastructure. Put another way,
from 1965 to 1992 our rate of investment in infrastructure as a share of our total



XII



4
spending was cut in half. (See Attachment 2 for a breakdown of federal spending for
infrastructure as a percentage of all federal spending, 1956-1993.)

As a share of the overall economy, the pattern has been the same. Federal
infrastructure investment doubled from 0.5 percent to 1 percent of Gross Domestic
Product between 1956 and 1959. It leveled off for the next 20 years, achieving a high of
12 percent in 1980. Thereafter, the trend was down, falling to 0.7 percent of Gross
Domestic Product in 1992. (For a breakdown of federal spending for infrastructure as a
percentage of Gross Domestic Product, 1956-1993, see Attachment 3.)

Distribution of Spending

Historically, pursuing a consistent, broad-based infrastructure investment policy
with a has been difficult because the federal government has failed to make a long-term
commitment to any infrastructure program. Instead, we have favored one infrastructure
investment program for a while and then shifted our priority to another.

As noted above, in 1956 total federal spending for infrastructure (in constant 1990
dollars) was $11.6 billion. According to Congressional Budget Office data, of those



Online LibraryUnited States. Congress. House. Committee on PubliTransportation and environmental infrastructure needs : hearings before the Subcommittee on Investigations and Oversight of the Committee on Public Works and Transportation, House of Representatives, One Hundred Third Congress, second session, March 15, 1994 (transportation infrastructure), April 21 → online text (page 1 of 120)