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RCED-93-193R 1 (1993-08-10)

handle is hein.gao/gaobackke0001 and id is 1 raw text is: United States GAO General Accounting Office Washington, D.C. 20548 Resources, Community, and Economic Development Division B-253984 August 10, 1993 The Honorable Pete Domenici United States Senate 149876 Dear Senator Domenici: The purpose of this letter is to provide you with information that you requested on funding alternatives for highway demonstration projects authorized under the Intermodal Surface Transportation Efficiency Act (ISTEA) of 1991. Specifically, you asked us to analyze (1) the effect . ~ on states' funding levels of redistributing ISTEA demonstration project funding as federal-aid highway Q program apportionments and (2) the effect on states' rates of obligation of bringing ISTEA demonstration projects -- r. under the annual obligation limitation. You requested these two analyses as a follow-up to our o 0 March 31, 1993, testimony entitled Surface Transportation: Funding Limitations and Barriers to Cross-Modal Decision Making (GAO/T-RCED-93-25). That testimony presented a number of concerns regarding the costs of authorizing a o large number of demonstration, or special, highway projects Q and the limited payoff that is associated with this type of U - highway investment.' As our testimony noted, demonstration > projects tend to have a slow rate of obligation. For 4J example, in 1991, only 36 percent of funding authorized for demonstration projects 4 years earlier had been obligated. Our first analysis considered the impact on individual states' total funding levels of redistributing ISTEA demonstration project funding. This analysis assumed the hypothetical scenario that ISTEA had not included demonstration projects. We performed the analysis by 'Demonstration, or special, projects fall into several distinct categories but are generally specific construction projects identified by name in legislation. Projects can range in scope from paving a gravel road to building a multilane highway. GAOIRCED-93-193R, Highway Demonstration Projects 55 1942 y

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