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107618 1 (1978-03-01)

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DOCUMENT RESUME


07618 - [C27678491

Analysis of Unobligated Balances in the  Urban Mass
Transportation Fund. March  1978. 42 pp. + appendix (12 pp.).

Report by Stephen Swain; James Bell;  Mitchell Bachlis.

Contact: Program Analysis Div.
Organization Concerned: Urban  Mass Transportation
    Administration.
Congressional Relevance: House Committee  on Budget: Budget
    Process Task Force. Rep. Butler Derrick.
Authority: Urban Mass Transit Act of  1964, as amended. Railroad
    Revitalization and Regulatory Reform  Act of 1976. Federal
    Aid Highway Act of  1973. National Mass Transportation
    Assistance Act of 1974. Urban Mass Transportation  Assistance
    Act of 1970. Congressional Budget and Ipoundment   Control
    Act of 1974. 23 U.S.C.  103(e).

         All of the Urban Mass Transportation  Administration's
(UMTA's) programs include grants to State or  local governments
since UNTA does not itself operate transit services  or construct
transit facilities. Unexpended balances in the  UNTA account at
the close of fiscal year 1977 involved $12.6  billion, $9.6
billion of which represented unobligated balances and  $3.0
billion of which represented unliquidated obligations.  The 1979
budget forecasts that unliquidated obligations  will exceed
unobligated balances at the end of that year  by $576 million.
Findings/Conclusions: The large dnobligated balance  in the UhTA
program exists primarily because of the way Congress  funds and
controls UMTA programs. UNTA funding has taken the  form of
contract authority which does not lapse at the  end of the fiscal
year in which it was authorized. This method was  chosen to
provide for advanced funding for UNTA programs.  UHTA believes
th *, at the present level of program option,  it will utilize
alast  all of the unnbligated funds available  by the end of
1980, as most of these funds will likely be committed  by
administrative reservation even if they are not  formally
obligated. Increases in UNTA's unliquidated balances  are due
primarily to the funding of projects for new rail systems,
Issues related to congressional consideration of new  legislation
for UMTA programs involve: how to provide advanced  budget
authority, how much funding to privide for new heavy  rai.
systems, and how to simplify the complex appropriation  program.
(RRS)

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