FY 2012 President’s Budget Released February 14, 2011

Surface Transportation Summary Administration’s surface transportation reauthorization proposal is the centerpiece of the FY 2012 budget. Provides $556 billion, six-year proposal to improve the Country’s highways, transit, and rail infrastructure and to ensure that these systems are safe. Includes $50 billion “Up-Front” economic boost that would foster job creation. 2

FHWA Summary Budget request represents first year of Administration’s surface transportation reauthorization proposal ­ $336 billion from FY for highway programs ­ 48% increase over SAFETEA-LU FHWA FY 2012 budget request is $70.5 billion ­ $42.8 billion plus $27.7 billion “up front” funding 3

Highlights Proposal provides funding to: ­ Modernize our highway system and create jobs. ­ Focus investment on safety, state of good repair, and livability. ­ Establish a performance-based highway program. ­ Encourage innovations that will shorten project delivery and accelerate the deployment of new technologies. ­ Simplify the highway program structure by consolidating over 55 programs to 5 core programs. 4

Highway Safety Improvement Program 5 Continues Highway Safety Improvement Program ($2.2 billion) ­ States may use up to 25% (10% currently) for non- infrastructure (e.g. EMS, education) safety projects in their Strategic Highway Safety Plan. ­ Ends transfers of HSIP funds to other (non-safety) programs unless performance targets are met. ­ States must spend 10% of their HSIP funding on rural safety projects.

National Highway Program 6 Targets investment to maintain state of good repair and operational performance on roads critical to national interest. Provides flexibility to the States for making transportation investment decisions on the larger system of Federal-aid eligible highways. Streamlines and consolidates portions of several existing programs including Interstate Maintenance, National Highway System, Highway Bridge, Surface Transportation Program.

Enhanced National Highway System 7 Redefines the NHS as 220,000-mile network that includes: ­ Interstate System. ­ All principal arterials. ­ Intermodal connectors. ­ Other roads important to strategic defense policy. Expands network that would carry 55% of all traffic and 97% of all truck-borne freight. Consistently defined network of national interest that would operate as a cohesive highway system to support interstate commerce and economic competitiveness.

Highway Infrastructure Performance Program 8 Establishes formula and performance based program ($16.75 billion) ­ Maintains infrastructure condition and performance on the expanded NHS network. ­ Performance focus on pavement and bridge conditions, and safety.

Flexible Investment Program 9 Establishes formula-based program ($15.6 billion) Provides flexibility to the States to replace or improve highway infrastructure, improve operational performance, and build or expand needed transportation facilities Funds can be used on any Federal-aid eligible highways (~995,000 miles) and off-system bridges.

Livable Communities 10 Establishes place-based planning, policies, and investments to increase transportation choices and access. Funds transportation projects to improve quality of life in rural and urban areas, and improve air quality in metropolitan areas. Combines eligibilities of previously separate programs under three programs: ­ $3.4 billion formula-based program. ­ $500 million discretionary grant program for livable communities. ­ $200 million discretionary capacity building grant program.

Performance Management Process 11 Establishes a performance-based Federal-aid highway program. Focuses initially on safety, pavement and bridge conditions. Requires the Secretary to establish quantifiable performance measures and national performance goals. States to work in partnership with FHWA to set state targets. ­ Safety – incorporates State Strategic Highway Safety Plans. ­ Pavements/Bridges – requires risk-based asset management plan for enhanced NHS. Provides additional flexibility when targets are met. Requires performance improvement plan when targets not met.

Transportation Leadership Awards 12 New competitive grant program ($1.3 billion) that will assist State departments of transportation, metropolitan planning organizations, tribal governments and other transportation agencies to make the reforms necessary to institutionalize best practices and innovations in transportation policy. The program will reform the way transportation investments and decisions are made and implemented to better realize performance outcomes and to integrate performance management into the budget and project selection process.

Other Key Provisions 13 Accelerated project delivery ­ Includes provisions to improve project delivery in the areas of environmental review, permitting, integrating transportation planning and environmental review of transportation projects and efficiencies in contracting. ­ Builds on SAFETEA-LU provisions and expands on efforts under Every Day Counts to use innovative approaches and existing flexibilities. Freight policy ­ Establishes a National Freight Transportation Policy and designates a National Freight Transportation System. ­ Broader State flexibility on the use of HIPP and FIP funds to improve performance of designated national freight corridors.

Other Key Provisions 14 National Infrastructure Bank ­ Finances transportation projects of national or regional significance ­ Leverages resources to achieve maximum return on federal funds. ­ Funded at $5 billion annually. ­ Within USDOT and governed by board of officials from USDOT and other federal agencies.

Transportation Trust Fund Expands the Highway Trust Fund into a new Transportation Trust Fund that includes: ­ Highway Account ­ Mass Transit Account ­ Rail Account ­ Infrastructure Bank Account Existing HTF revenues will continue to be dedicated to highways and transit. The President is committed to working with Congress to ensure that funding for surface transportation does not increase the deficit. 15

For More Information DOT/FHWA Budget Highlights: FHWA Congressional Justification: pdf pdf President’s Budget (DOT/FHWA overview and detailed budget account information):