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115591 1 (1981-06-23)

handle is hein.gao/gaobadytp0001 and id is 1 raw text is: 




                                                              LM11559i
              UNITED STATES GENERAL ACCOUNTING OFFICE

                      WASHINGTON, D.C. 20548

                                 FOR RELEASE ON DELIVERY
                                 EXPECTED AT 10:00 A.M.
                                 TUESDAY, JUNE 23, 1981



                        STATEMENT OF

                 HENRY ESCHWEGE, DIRECTOR

        COMMUNITY AND ECONOMIC DEVELOPMENT DIVISION

                         BEFORE THE

        SUBCOMMITTEE ON INVESTIGATIONS AND OVERSIGHT

        COMMITTEE ON PUBLIC WORKS AND TRANSPORTATION

                  HOUSE OF REPRESENTATIVES

                             ON

                   LCONTROLLING SOARING

              MASS TRANSIT OPERATING SUBSIDIES

MR. CHAIRMAN AND MEMBERS OF THE SUBCOMMITTEE:

     WE ARE HERE TODAY AT YOUR REQUEST TO DISCUSS MASS TRANSIT

OPERATING SUBSIDIES. EARLIER THIS YEAR WE COMPLETED A REVIEW

OF THE FEDERAL MASS TRANSIT SUBSIDY PROGRAM AND THE TRANSIT

INDUSTRY'S COST AND REVENUE PROBLEMS. THE COMPTROLLER

GENERAL'S RESULTING REPORT (CED-81-28) WAS RELEASED TO THE

CONGRESS ON FEBRUARY 26, 1981. IT IS ENTITLED SOARING TRAN-

SIT SUBSIDIES MUST BE CONTROLLED. MY STATEMENT HERE TODAY

WILL SUMMARIZE AND UPDATE THAT REPORT.

     DEMAND FOR TRANSIT OPERATING SUBSIDIES IS APPROACHING

CRISIS PROPORTIONS. IN 1979, TRANSIT SYSTEMS RECEIVED ABOUT

$3 BILLION IN FEDERAL, STATE AND LOCAL GOVERNMENT OPERATING

SUBSIDIES', AND WE ESTIMATE GOVERNMENT OPERATING ASSISTANCE

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