Mass transit : challenges in evaluating, overseeing, and funding major transit projects

792161PDFResearch PaperGAO/T-RCED-00-104Public transitEvaluation and assessmentCostsOversightFinancingSchedulingConstructionCompetitionUnited StatesUnited States. General Accounting OfficeUnited States. Government Accountability OfficeNTL-PUBLIC TRANSPORTATION-Transit Planning and PolicyUS Transportation CollectionThis is the statement of Phyllis F. Scheinberg, Associate Director, Transportation Issues, Resources, Community, and Economic Development before the Subcommittee on Transportation, Committee on appropriations, House of Representatives discussing the challenges the Federal Transit Administration (FTA) faces in evaluating and overseeing proposed mass transit construction projects. This testimony presents, specifically (1) FTA's process for evaluating proposed transit projects, (2) FTA's oversight of transit projects under construction, and (3) the ever-increasing competition for federal transit construction dollars. In addition, information is provided on the costs, schedules, and financing of six ongoing transit projects. To summarize, FTA has responded to the direction in TEA-21 that it develop a systematic process for evaluating potential New Starts projects competing for federal funding. To prepare for the fiscal year 2001 budget process, FTA evaluated 48 projects, rated 32 as highly recommended or recommended, and proposed that 15 new projects receive funding through grant agreements. FTA has improved the quality of the federal grants oversight program since the early 1990s, when the program was placed on the General Accounting Office's (GAO's) high-risk list because it was vulnerable to fraud, waste, abuse, and mismanagement. More state and local transit agencies than ever are competing for New Starts funds. However, the 14 ongoing projects and the additional 15 projects proposed in the Department's 2001 budget would consume more than the total New Starts commitment authority provided by TEA-21. Last year, in work done for this Subcommittee, GAO reported on the costs, schedule, and financing of 14 ongoing projects with grant agreements. The GAO has updated information on six projects. This information is located in Appendixes II through VII of the testimony