In addition, a number of local, regional, and federal  organizations affect WMATA’s decision-making, including (1) state and  local governments, which subject WMATA to a range of laws and  requirements; (2) the National Capital Region Transportation Planning  Board of the Metropolitan Washington Council of Governments, which  develops the short- and long-range plans and programs that guide  WMATA’s capital investments; (3) FTA, which provides oversight of  WMATA’s compliance with federal requirements; (4) the National  Transportation Safety Board, which investigates accidents on transit  systems as well as other transportation modes; and (5) the Tri-State  Oversight Committee, which oversees WMATA’s safety activities and  conducts safety reviews. WMATA also assists federal law enforcement agencies  by providing security for high-profile events and other security-related  expertise and services. Furthermore, the emergency transportation plans  of the District of Columbia and the Washington region both rely heavily on  Metrorail and Metrobus for transportation in an emergency scenario  requiring evacuation. The federal employees who ride Metrorail to  and from work each day represent a substantial share of federal  employees in the Washington, D.C., region. Emergency personnel from across the region train at the  center. The panel estimated that under its  current revenue structure, WMATA would have a total funding shortfall of  about $2.4 billion for fiscal years 2006 through 2015 for maintaining and  upgrading its existing system, assuming that Metro Matters was fully  funded. The panel did not include the costs of providing paratransit  services as required under ADA. Observing that WMATA has provided numerous benefits both to the  Washington region and the federal government over the years, the Metro  Funding Panel also concluded that WMATA will require a commitment of  new revenue sources to sustain those benefits. In the current situation of large budget deficits, any additional federal  funding for WMATA would need to be considered along with the many  other competing claims for federal resources. To the extent that the  federal government cannot provide significant additional support to  WMATA, and WMATA’s current revenue structure continues to be  insufficient to support its planned capital projects, WMATA may need to  reassess its capital improvement plan to determine which projects could  be undertaken within a more constrained funding level. WMATA Is Subject to Oversight from Multiple Entities Whose Reviews Address a Wide Range of Issues

WMATA is subject to oversight from multiple entities that have issued  numerous reports on the agency since 2003. All of these entities included recommendations in their reports,  and, in general, WMATA implemented them or has plans to implement  them. Additional GAO Work Remaining on WMATA’s Oversight

As part of our ongoing work, we plan to analyze these reviews in greater  detail to determine whether, taken as a whole, they point to any systemic  problems and are sufficiently comprehensive to identify and address  overall management and operational challenges. Congress may consider further specifying the types of projects for which  federal funds could be used or including a matching requirement to ensure  that some local funds continue to be used for infrastructure and capital  requirements. In addition, if Congress decides to  provide WMATA with the additional funding, it is important for there to be  reasonable assurances that the funds will be spent efficiently and  effectively. WMATA’s existing oversight could be supplemented by  including safeguards in any legislation that provides additional federal  funding. Appendix I: Objectives, Scope, and Methodology

To determine the Washington Metropolitan Area Transit Authority’s  (WMATA) responsibilities for supporting the federal government, we  interviewed a wide array of federal and local officials including those from  WMATA, the Federal Transit Administration (FTA), the Office of  Personnel Management, the General Services Administration, the National  Capital Planning Commission, the Metropolitan Washington Council of  Governments, the U.S. Secret Service, the U.S. Capitol Police, and the  District of Columbia Department of Transportation. To determine the current funding challenges facing WMATA and the  options proposed to address these challenges, we reviewed and analyzed  the budgetary shortfall estimate prepared by the Metro Funding Panel,  budget documents from WMATA, and prior GAO reports. Our review  included the following:    FTA’s Project Management Oversight (PMO) program contractor reports    FTA’s most recent Triennial Review    The independent external auditor’s review of WMATA’s financial  statements and internal controls as required under the Single Audit Act   The American Public Transportation Association’s peer review reports  Although FTA carries out a number of reviews of transit agencies in  addition to the Triennial Review and the PMO reports, we selected the  Triennial Review because it covers grantees’ compliance with a wide  range of statutory and administrative requirements, and we selected the  PMO reports because this program provides oversight of WMATA’s major  capital projects, which represent a significant part of WMATA’s budget. To identify applicable examples of spending safeguards and management  oversight of any additional federal assistance provided to WMATA, should  Congress decide to provide such assistance, we reviewed prior GAO work  on surface transportation funding and management oversight, as well as  other documents on transportation planning and finance, and interviewed  officials with expertise in the transit industry, transportation finance, and  transportation planning.
Why GAO Did This Study

In recent years, the Washington Metropolitan Area Transit Authority (WMATA) has faced serious financial and budgetary problems as well as continuing challenges related to the safety and reliability of its transit services. At the same time, ridership is at an all-time high, and WMATA continues to provide critical services and considerable benefits to the Washington region and to the federal government. This statement discusses (1) WMATA's responsibilities for serving the interests of the federal government, including the agency's role in transporting federal employees and visitors to the nation's capital and in supporting homeland security for the Washington metropolitan region; (2) the current funding challenges facing WMATA and the options proposed to address these challenges; (3) preliminary information on some of the entities that currently provide oversight of WMATA and the focus of their recent reviews; and (4) some considerations and options in instituting spending safeguards and oversight of any additional federal assistance provided to WMATA, should Congress decide to provide such assistance. GAO discussed this testimony with WMATA and FTA officials, who provided comments and additional information that GAO incorporated as appropriate.

What GAO Found

WMATA transports a substantial share of the federal workforce and provides an important means of transportation to special events that occur in Washington, D.C., as the nation's capital. WMATA's Metro Transit Police assists federal law enforcement agencies by providing expertise in civil disturbance management and explosives detection and by training first responders in emergency management techniques specific to transit environments. WMATA's Metrorail and Metrobus are the preferred means of transportation in an emergency scenario requiring evacuation, and both the regional and the District of Columbia emergency transportation plans rely heavily on them. A regional funding panel estimated WMATA's budgetary shortfall at $2.4 billion for fiscal years 2006 through 2015 if WMATA were to fund many of the projects in its 10-year capital improvement plan. This shortfall may be even greater because the panel's shortfall calculation did not include the costs of providing specialized transportation for persons with disabilities, as required under the Americans with Disabilities Act. To deal with WMATA's funding shortfall, the regional panel concluded that the region needs to develop a dedicated source of revenue for WMATA (e.g., local sales tax) and that the federal government needs to provide significant contributions because of the benefits it receives from WMATA. However, given the large federal budget deficit and competing claims on federal resources, GAO believes WMATA may also need to reexamine its own spending priorities. As part of its ongoing work on WMATA's oversight entities, GAO found that WMATA is subject to oversight from multiple entities that, since 2003, have issued hundreds of reports--which vary in scope--on a broad range of topics. These entities include WMATA's Auditor General, an independent external auditor, the Federal Transit Administration (FTA), and industry peer review panels. The entities have made recommendations to WMATA, which WMATA has generally implemented or plans to implement. As part of its ongoing work, GAO plans to analyze these reviews in more detail to determine if they comprehensively identify and address WMATA's overall management and operational challenges. GAO's ongoing work will also cover other FTA reviews and safety reviews of WMATA's operations. Congress, the administration, and GAO have long recognized the benefits of having spending safeguards and management oversight for entities that receive federal funding. If Congress decides to provide WMATA with additional federal funding, there needs to be reasonable assurance that the funds will be spent effectively. We identified several options for additional oversight that could be incorporated into legislation that provides additional federal funding to WMATA, including having WMATA officials periodically report to Congress on how the funding is being spent; specifying the types of projects for which federal funds could be used; and requiring that any additional federal funding be subject to FTA's oversight programs.