Our  nation has built a vast transportation system of roads, airways, railways,  pipelines, transit, and waterways that facilitate commerce and improve  our quality of life. There is a human cost: over 44,000 people are killed in transportation- related accidents and over 2.5 million are injured each year. The transportation system is under considerable strain from these factors,  and this strain is expected to increase as the demand to move people and  goods grows resulting from population growth, technological change, and  the increased globalization of the economy. The Department of Transportation implements national transportation  policy and administers most federal transportation programs. For fiscal year 2008, the President’s budget requested $67 billion to carry  out these and other activities. The department carries out some activities directly, such as employing  more than 15,000 air traffic controllers to coordinate air traffic to make  certain that planes stay a safe distance apart. However, the vast majority  of its activities are not under its direct control. In other cases—notably most freight railways and  pipelines—the infrastructure is owned and operated by private companies  and the Department of Transportation regulates the safety of their  transportation operations. Transportation Challenges Facing Congress and the Department of Transportation

In our view, Congress and the Department of Transportation face four  major transportation challenges—financing the nation’s transportation  system, improving mobility, improving safety, and managing the  transformation of the air traffic control system. Financing the Nation’s Transportation System

The efficiency of the nation’s transportation infrastructure is threatened  by increasing demand for transportation services, and revenue from  traditional funding mechanisms may be unable to keep pace at current tax  rates. 2.) Freight traffic is projected to grow substantially, putting strain on ports,  highways, railroads, and airports, but current public planning and  financing impede strategies to address capacity investment, and industry’s  ability to fund its capacity increases to meet growth is largely uncertain. Congestion across modes—estimated to cost $200  billion per year—is significant and is projected to worsen. 3.) Of particular concern is the limited progress in improving safety  on our nation’s roads, where about 95 percent of all transportation  fatalities occur. Projected increases in congestion across  modes, as a result of population and economic growth, could cause a  deterioration in transportation safety in the future despite vigorous efforts  to reduce accidents. FAA has had systemic management and acquisition problems that have led  us to designate its air traffic control modernization program as high-risk  since 1995. Despite its progress, as the key implementer of NextGen, FAA needs to  institutionalize improvements made and continuously improve. In particular, both are confronted with  an impending shortage of skilled people that threatens to have serious  short- and long-term consequences. In recent years,  the department has made significant progress in managing its finances,  including substantial improvements in FAA’s financial management  systems and practices. For fiscal year 2006, the department  received a qualified opinion on its financial statements and the auditors  cited two material internal control weaknesses. Appendix I: Ongoing GAO Work Related to Transportation Challenges

Description (expected completion)
Airport capital development funding (early 2007)
Federal role in overseeing and funding railroad bridge and  tunnel projects (mid 2007)
JayEtta Hecker   (202) 512-2834  HeckerJ@gao.gov  (mid 2007)
The Federal Transit Administration’s New Starts program   (mid 2007)
The Federal Transit Administration’s implementation and  oversight of the New Freedom program (TBD)
Operational, capacity, and safety issues associated with the  Airbus A380 (early 2007)
Introduction of very light jets into the national airspace system  (mid 2007)
Approaches to the efficient use of existing transportation  infrastructure (mid 2007)
Freight bottlenecks (late 2007)
Public-private partnerships in transportation (late 2007)
Restructuring the federal-aid highway program (TBD)
Trends and performance of state contracting with the private  sector (TBD)
Port preparedness and mobility of goods during natural  disasters (early 2007)
Katherine Siggerud  (202) 512-2834  SiggerudK@gao.gov  mobility challenges (mid 2007)
Corporate Average Fuel Economy program policy options  (mid 2007)
Surface transportation compliance with the Americans with  Disabilities Act of 1990 (late 2007)
The public safety impact of the Transportation Security  Administration’s modifications to the prohibited items list  (early 2007)
Implementation progress of the Uniform Carrier Registration  program (TBD)
Description (expected completion)
Operational, capacity, and safety issues associated with the  Airbus A380 (early 2007)
Administration (late 2007)
Identification of motor carriers that pose a high risk for  crashes (mid 2007)
Susan Fleming  (202) 512-2834  FlemingS@gao.gov  monitoring of unsafe motor carriers (mid 2007)
Safety standards for older drivers (early 2007)
Emerging trends in and challenges to preventing highway  fatalities (late 2007)
Next generation air transportation system    Survey of Joint Planning and Development Office  stakeholders (mid 2007)
Gerald Dillingham  (202) 512-2834  DillinghamG@gao.gov modernization program (mid 2007)
The Federal Aviation Administration’s financial management  efforts (mid 2007)
Highway transit funding authority (mid 2007)
Security and emergency preparedness and response    Research and development of aviation passenger checkpoint  screening technologies (mid 2007)
Cathleen Berrick  (202) 512-3404  BerrickC@gao.gov  commercial vehicles (TBD,b)
Port preparedness and mobility of goods during natural  disasters (early 2007)
Katherine Siggerud  (202) 512-2834  SiggerudK@gao.gov  transit agencies (TBD)   report my not be pblicly ilble t thi time because it my contin ecrity enitive  informtion. Other products can be found at  GAO’s Website at www.gao.gov.
Why GAO Did This Study

A safe, efficient, and convenient transportation system is integral to the health of our economy and quality of life. Our nation's vast transportation system of airways, railways, roads, pipelines, transit, and waterways has served this need, yet it is under considerable strain from (1) increasing congestion, (2) the large costs to maintain and improve it, and (3) the human cost of over 44,000 people killed and over 2.5 million injured each year in transportation-related accidents. The Department of Transportation implements national transportation policy and administers most federal transportation programs. For fiscal year 2008, the department has requested $67 billion to carry out these and other activities. While the department carries out some activities directly, such as employing about 15,000 air traffic controllers to make certain that planes stay a safe distance apart, it does not have direct control over the vast majority of activities that it funds, such as local decisions on the priority and placement of airports, public transit, and roads. In other cases, such as railways and pipelines, the infrastructure is owned and operated by industry. This statement presents GAO's views on major transportation challenges facing Congress and the department. It is based on GAO products, including recommendations made, and the products of others.

What GAO Found

Financing mechanisms for the nation's transportation system are under stress. Our nation's transportation infrastructure is threatened by increasing demand for transportation services, and revenue from traditional funding mechanisms for the nation's highway and aviation systems may be unable to keep pace at current tax rates. In addition, freight traffic is projected to grow substantially, but current planning and financing mechanisms impede public strategies to address needs. Our nation's mobility is threatened because the nation's infrastructure is under great strain. Congestion across modes (e.g., aviation, highways, and rail) is expected to worsen. However, funding by mode and the lack of performance-related goals result in little assurance that funds are being channeled to the most critical mobility concerns and that intermodal approaches can be integrated into the transportation system. Improvements in transportation safety are needed to reduce the number of deaths and injuries from transportation accidents--about 95 percent of which occur on our nation's roads. Increases in congestion across modes as a result of population and economic growth could cause deterioration in transportation safety despite departmental and state efforts to reduce accidents. The transition from the current air traffic control system to a broader and modernized system will be one of the department's most complex undertakings. In previous years, FAA has faced systemic management and acquisition problems that led us to designate its air traffic control modernization program as high risk. While the agency has made significant progress in recent years, a key challenge going forward will be to institutionalize these improvements and to continually improve. In addition, the department and the transportation sector face persistent human capital challenges due to an impending shortage of skilled people to meet changing transportation needs. Furthermore, despite recent improvements in financial management, the department received a qualified opinion on its 2006 financial statements. Finally, the department is working to clarify its role in transportation security and emergency preparedness and response.