The American Public Transportation Association (APTA) says it is disappointed that the Administration's FY 2007 budget proposes to fund federal transit investment at $100 million.... The American Public Transportation Association (APTA) says it is disappointed that the Administration's FY 2007 budget proposes to fund federal transit investment at $100 million below the level approved just last summer by near unanimous votes in Congress and signed into law by the President.

Under the Safe, Accountable, Flexible, Efficient Transportation Equity Act - A Legacy for Users (SAFETEA-LU), Congress set guaranteed transit funding at $8.97 billion in FY 2007. While transit funding would increase by 4.3%, from $8.50 billion in FY 2006 to $8.87 billion in FY 2007, funding transit below the authorized and guaranteed level means that needed improvements to the transit infrastructure will occur at a slower rate, thus prolonging what the President correctly described in his State of the Union Address as America's addiction to oil, which is often imported from unstable parts of the world.

While the budget proposal adheres to the SAFETEA-LU transit program in most respects, it proposes funding only $100 million of the $200 million authorized in FY 2007 for a new program meant to assist the development and construction of smaller fixed guideway projects such as streetcars, trolleys, commuter rail, and certain bus rapid transit systems. With 322 new starts projects in construction or authorized for final design or preliminary engineering in SAFETEA-LU, a cut in this program is indefensible.

In addition, APTA says the budget assumes the imposition of $59 million in fees on commuter railroads in the Northeast Corridor in each of FY 2006 and 2007 to support Amtrak spending, even though the open and transparent process which Congress called for to establish those fees has not yet been completed. These fees if imposed will force commuter railroads to raise fares and reduce service to their customers, thus pushing many back into their cars at a time when the President has identified America's need to wean itself from imported oil.

With recent U.S. Department of Transportation annual needs assessments of more than $20.6 billion for public transportation, APTA believes that the federal government should be invest no less than the level authorized and guaranteed by Congress and signed into law by President Bush. APTA will work with the Congress to ensure that transit capital investment is fully funded. Transit investment benefits every community and the nation. It helps to reduce our dependence on imported oil, improve air quality, and reduce congestion.