From the U.S. Government Accountability Office, www.gao.gov

Transcript for: Funding the Nation's Surface Transportation System

As part of GAO's High-Risk series, Kate Siggerud, Managing Director for
Physical Infrastructure, describes why GAO put the nation's surface
transportation system on its list of programs at high risk for waste,
fraud, abuse or mismanagement.

Released on: July 9, 2010

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I'm Kate Siggerud, Managing Director of GAO's Physical Infrastructure
team. It has been estimated that hundreds of billions of dollars are
needed to maintain and improve the performance of the nation's surface
transportation, our highway and transit systems. Yet, the major source
of federal and highway and transit funding, the Highway Trust Fund, has
seen revenues erode and spending increase. In fact, Congress recently
authorized infusions from the General Fund of the Treasury to keep the
trust fund solvent; these total almost $35 billion. While these
infusions allowed federal highway and transit programs to continue, they
do not address the fundamental challenge of determining first, the
appropriate level of federal investment and second, the appropriate
source of funds. The fiscal stress faced by federal, state, and local
governments will also make it increasingly difficult to find the
resources needed to invest in surface transportation. Funding the
nation's transportation system, therefore, is high risk.

GAO has called for a fundamental re-examination of the nation’s service
transportation policies to improve the effectiveness and sustainability
of the federal investment and to meet the nation's transportation needs.
Specifically, the federal approach should be restructured according to
four principles. First, ensure well-defined goals with direct links to
an identified federal interest and role. Second, ensure accountability
for results by those that receive federal funds. Third, use the best
tools and approaches to emphasize return on targeted federal investment.
And finally, ensure fiscal sustainability.

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