movement within the northeast corridor. their approach also it was our responsibility to help americans get back to work especially in the construction industry for more than one of five workers are unemployed. the bottom line is we have an opportunity to fix our broken-down infrastructure, get millions of workers back on the job and we also have a duty to the next generation of americans who are counting on us to make these investments in the future. so i look forward to hearing from the secretary about how we can make the smart transportation decisions needed to keep our company moving forward. thanks, mr. chairman. >> senator tuna. >> thinks mr. chairman and secretary lahood, thanks. nice to have you back and assistant secretary mr. bertram who spent some time appear in this committee. i appreciate you appearing before us and look forward to hearing what you have to say. we know we've heard from you once that the budget committee and probably will leave in july on the finance committee i'm guessing as well but a couple of observations if i might, mr. chairman, about the administration budget for 2012. it does propose some sweeping changes in the massive increases of the funding levels for d.o.t. programs. the heart of the budget is a $556 billion surface transportation reauthorization proposal this proposal would require an additional 231 billion in the highway trust fund which we would name the transportation trust fund over a six year period. the reauthorization also includes 53 billion for passenger rail at a time many states are canceling projects because the budgetary problems. i'm particularly concerned by the $50 billion up front transportation infrastructure plan for 2012 that sounds very much like another stimulus program. unfortunately the administration has left unanswered the obvious and pressing question and that is how do we pay for these increases? in fact this proposal appears to be less of a budget and more of a transportation wish list at the time the tight budgets and fiscal constraints we cannot impose new taxes or fees on the american people still struggling to emerge from the deep recession. beyond the life of the funding for the proposals i have several other specific concerns i hope we can get addressed this afternoon. i understand the administration's proposed the user fee on the railroads to offset the safety program expenses. in my view this as a matter more appropriately addressed by this committee as part of the big of a rise in the legislation after careful policy debate and should not be counted as expected revenue in the d.o.t. budget proposal. additionally i am concerned about the creation of the 30 billion-dollar national infrastructure bank as part of the new transportation trust fund. i would request a careful review of the policy implications of the program we are proceeding. frankly i have great reservations about this type of fund which i believe would principally benefit large metropolitan areas and ignore the needs of the rural states like my own. mr. secretary, thank you again for being with us today. i look forward to continuing to work with the dot to address the nation's transportation needs and i think you for holding today's hearing. >> thank you, senator thune. >> thank you for your work on the mexican trucking issue, something important to the growers in the pacific northwest and i'm sure i will get a chance to ask a question about that. i wanted to raise the last time before the committee we raised the issue of national freight mobility and working on tsp with the subcommittee chairman senator lautenberg and senator murray we introduced in the act last year. this recognizes the role of the courts play in moving freight that obviously necessary in the infrastructure that goes along with it and obviously it is something that creates jobs and very much needed boost to the economy. i know that i will have a chance to address some of these issues but the gao or important in 2003 cited specific barriers to inhibiting the intermodal transportation, limited federal funding, targeted projects, limited collaboration, limited ability to evaluate the project so i hope we will hear from you today about the department in the current rate strategy orientation on the highway corridors and will sign a little where the coordination with the administration lies on such issues and the department's intentions are to create and freight mobility programs. i think these types of prioritization have worked well for our economy and the needs of the key infrastructure improvements tied directly to the jobs so i look forward to hearing within this budget proposal the priorities you can give to that. thank you, mr. chairman. >> thank you, senator campbell. we are going to have to close the statements there and turn directly to you, mr. secretary. specs before mr. chairman and ranking member hutcheson and members of the committee think for the opportunity to discuss president obama fy 2012 budget request and the department of transportation just a few weeks ago. president obama delivered a powerful message on the state of the union and said to win the future our citizens, companies and companies need the most reliable ways to move goods and information and reminded us if they build a they will come. they want business to open shop and high the families and friends and neighbors we have to invest the roadways, railways and runways. we have to invest in 21st century buses, streetcars and transit systems and invest in the next generation technology for our skies and sidewalks and bike paths that make the streets more livable. all of this is included in the president's 129,000,002,012 budget for the u.s. the board of transportation designed as a first installment of the bold six year 556 billion reauthorization proposal the lowest relative level of domestic spending since president eisenhower was in office six decades ago. that was ten administrations ago. the simple fact is we have to cut and consolidate things that aren't growing the economy or making easier, making it easier to do business in order to pay for the things that are so the department of transportation, president obama's budget slashes red tape and consolidates more than 50 programs and includes reforms that will accelerate project delivery and in power local communities. of course our major of objective is to make investments and to mauro that expand economic opportunities today. to dream big and build big hit on the cover of the budget, there is a picture of a bridge that crosses the hoover dam, connect nevada and arizona. seven years ago or more people began planning for this bridge. and if it weren't for the big thinkers and the big builders of generations ago, we wouldn't have the opportunity to dedicate this. that's what this budget is about. that's what his vision is about, big and bold, just like people who came before us who have big positions, big bold view how we put people to work and build america's infrastructure. our budget keeps us on track towards the national high-speed system within 8 billion-dollar investment in 2012 and 53 billion investment during the next six years and increase its resources for the highway bridge improvements by 48% and increases funding for affordable efficient sustainable bus, streetcar and transit systems by 126%. it includes a $50 billion up front boost to keep the recovery moving in the short term and a $30 billion national infrastructure bank that will finance major projects of national or regional significance over the long run. at the same time, safety is and always will be our top priority. president obama's budget reduce our commitment to prevent traffic crashes with resources for our ongoing campaign against destructive driving kimmage not driving and to promote seat belt use. the president's proposal requests new authority for the federal transit and attrition to ensure the safety of the transit riders across america and it gives the federal motor carrier safety administration stronger capacity to keep commercial traffic safe. finally, we are dedicated to doing all of this without passing on another line of debt to our children and grandchildren for the first time transportation spending would be subject to paygo provisions that insure the dollars we give out do not exceed the dollars coming in. these are just a few components of the president's plan that reflect a much larger point, america's transportation system is at the crossroads. our choice isn't between policies on the left or policies on the right. the choice is whether our economic recovery rolls forward all calls backwards. it's up to us with a really a new foundation for economic growth, competitiveness and opportunity or we settle for a status quo that leaves america's next generation of launch appears our children and grandchildren with clogged arteries of commerce. it's up to us whether we do big things or whether we do nothing and if we choose wisely our legacy can be in the economy on the move and the future america is prepared to win. with that i will be happy to answer questions. estimates before, mr. secretary. the administration has said it's developing a comprehensive legislative proposal to support the surface transportation authorization, reauthorization. and the president's budget request frequently references that proposal. however, weeks have gone by and we have yet to see anything. the committee's developing reauthorization legislation and such a legislative proposal would be helpful in understanding the administration goals and intentions for the reauthorization. we are working with our colleagues at the omb through the process of the legislative proposal and we hope to have one to you. it will be a reflection of the president's budget. >> we have that problem more than i would like. we have it on the cybersecurity. we have got four committees involved in cybersecurity and everyone has more or less figured out what to do with olympia snowe on this committee has a huge part of that. but we haven't gotten anything out of the white house and the refrain increase is just a bit here in the senate. if we are to have an opportunity to pass this bill and move it quickly, we have to know where the money is going to come from. that is a big chunk which is on funded and as you referenced, the president said what he's not for which is raising the gas tax but he has a preference what he might be for and at some point we have to come to grips with that. >> mr. chairman we are prepared to work with you and other members of the congress and a bicameral way to find the resources we need. we want to put a bigger vision out. that's what the president has done, this is a big bold vision. it's the boldest vision anybody can remember a president has ever put out in terms of transportation. and we are prepared to work with you and others in the congress to find the resources to make this vision a reality. >> and that does mean that his chain will be proposing along with us? >> we will work with you and anybody that wants to find resources to fund this big a bold vision. >> okay. is everything on the table for funding -- >> the president said very clearly threw me and others that he's not in favor of raising the gas tax and unemployment is at 8.9% and we still have a lousy economy. there are some people in this country who can little afford to buy gasoline let alone one that's been increased by increasing the gas tax. >> dalia understand and agree with that, but what might be on the table. and you can't answer it, i won't press it. it's just it's comforting as you prepare for legislation of how you're going to pay for it. senator hutchison. >> mr. secretary i sit in my opening statement i am very concerned about what i consider to be extraordinary increase and the operations account of the faa at the expense of the capitol accounts and infrastructure accounts. so could you explain why there is a 400 million-dollar increase over fy ten in the operations account and if you're concerned that the diminishing the capitol accounts while we are trying to put forward in the next-gen which is probably the biggest thing that the faa will be doing in the next ten years. if you want more clarification the fy 12 budget requests a 5% increase, .5% increase for operations the of what else but has a 5% increase for facilities the operations account would increase by 3%, by 5.5%. the of white weld budget request 1.2 billion. my point is this the of what of budget requests 1.2 billion for the next generation technology which has grown some 69,500,002,009 which is a 72% increase for the next generation technology. >> my staff tells me that you are looking at the up front, the 50 billion-dollar up front part of your bold vision, and that is including a $3.1 billion increase for the airport improvement program and 250 million for next-gen application. but from the general fund, and i'm asking why the operations account is going up so much in your regular budget process, not the up front vision -- >> let me ask our budget -- >> i apologize because i failed to introduce chris who is the secretary for budget. >> i apologize to mad because i forgot to mention -- >> the operations account for the faa has been increasing on average 3% annually and i feel we have a more concerned. this year the increase is only half a percentage, probably the slowest that we have ever had. so i think it is something we are cognizant of to keep the operations at a reasonable rate of growth. >> keep in mind we had huge increases in the last two years some are looking at 2008 as a benchmark rather than the inflated spending that occurred in 2010 and 2011. my question is why are there so many more in the operations when you've had such increases in the last two years where is the effort to bring operations more in line with the 2008 levels or just knowing our fiscal house is not in order why would we be increasing so much in fees? it seems like really throughout the department we are increasing so much in operational costs. >> on dfa side it is one of the smallest increases we have ever had in the proposed budget. the cost drivers for operations are things like utilities, hiring additional inspectors that work on the seat decide that the faa as well as increased costs. >> i think we need to look at how much of that is some more inspectors -- >> we can break that down where all the increases are. >> a smaller increase but you had to years of big increases which is not getting the message that yes we have boiled visions you can't just keep throwing money at operations and create these big visions or implement these big visions. so i will be anxious to hear more details, mr. secretary. thank you. >> thank you, senator hutchison. >> thank you, mr. chairman. thank you, secretary lahood and assistant secretary bertram. secretary lahood, you and i had the opportunity to speak last week about the memorial bridge in portsmouth. would you still agree that is one of the worst bridges in america? >> is one of the worst bridges in america, senator, and that's the reason that we provided the money that we provide is that you all could have a new bridge. >> certainly we appreciate the commitment when you came to fort smith to the project and wanted to ask you about the actual approval process that new hampshire and maine are going through right now. there is a process that is undergoing the preview and itself is as light understand it, we've already undertaken it in the past that was sufficiently completed 2008 and approved. are you familiar with about? >> i know all of the approvals will be completed in late summer, early fall. >> as we understand the review that was already approved, the one that has been resubmitted is very substantially similar, very few differences between the two. would you agree with me on that? >> i got -- i will have to answer a few for the record on that. i don't want to say that i know the intimate detail that is similar to. i would rather answer you for the record. i know this, that based on a conversation that you and i had i went back and did the research on this project and was told by my staff that all the approvals will be completed by late summer, early fall. but on the specific question i will give it to you for the record. >> i would appreciate that because i had a comparison in front of me between the review that was already done and that has been resubmitted and there is really only one minor difference between the two. so given that, i'm asking you why we cannot expedite the review process within your office to ensure that a essentially as i see this very little difference in paperwork that we have already done and have gotten the per full approval for a project as you know both states are deeply committed to see can have your commitment to expedite the review process within the department of transportation. >> absolutely you can have my commitment. >> i very much appreciate that and look forward to working with you want. >> on this project i want everybody to know that if the bill that passed the house is passed in the senate there is the last line of the bill that says any funds not obligated by february 11th will come back to the treasury. so i want to just let everybody know that, these are all the projects we wouldn't have funded then if we had known they wouldn't be good. these are projects that need this money and so we want majority understands that. you have the commitment to do everything we can to expedite this project. >> i appreciate that, mr. secretary, and since having reviewed this which i know that you will do the commitment from both of our states have already gone through the paperwork process once i would hate to see the bureaucracy stand in the way between the project when we have gone through already the proper review so i appreciate your commitment to expediting the process within your agency because, you know, too often unfortunately the process itself, even though states have complied can be very onerous as you know. >> you have my commitment. >> thank you. >> thank you. >> thank you, senator. again, now before we were having committee chair and ranking member comments. this is done by appearance there for senator lautenberg is next followed by senator cantwell then senator begich. >> thinks mr. chairman. mr. secretary, as i said before, good work being done there and appreciate your effort and your skill and believe in your way through making sure the transportation agenda of the long. in florida governor rick scott said he rejects to $.4 billion in federal high-speed rail funds the northeast corridor could start putting the funds to use now to boost the economy and existing high-speed rail service and create jobs. if the funds are returned to the dot will the northeast corridor be a priority for these funds? >> we have a request from just about every member of congress on both sides of the capitol for the funds, senator. >> many of the senators and representatives are from the northeast corridor. and we are working our way through how to process the reallocation. >> the bill proposed by house republicans has slashed funds to replace the 100-year-old corporate bridge and this bridge carries more than 400 trains and 180,000 people every day. one of the biggest passenger rail cars in the country. what effect might this have on the commuters and the northeast corridor if the house republicans had their way and the bridge doesn't get replaced? >> we are committed to working with you and others for the replacement of this bridge. it's absolutely critical for safe travel. it's absolutely critical to the citizens of new jersey and new york and we remain committed to making sure the project moves forward. >> 2,009 president obama signed and to fulfill established marine highway great program. it's to 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