March 17, 2003

United States Conference of Mayors, National Conference of State Legislatures, Council of State Governments, National Association of Counties, National League of Cities, International City/County Management Association

March 11, 2003

As the Budget Committees proceed to draft the Fiscal Year 2004 Budget Resolution, the nation's state and local leaders urge you to include a substantially increased transportation budget level to meet growing urgent needs of our nation's transportation network.

The Transportation Equity Act for the 21st Century (TEA-21) represented a significant commitment to improving our nation's surface transportation system. The benefits of this commitment are now evident in communities both large and small and in all of the fifty states. Transportation investment is an economic stimulus creating jobs and helps ensure that states and communities thrive. The U.S. Chamber of Commerce estimates that each $1 billion invested in transportation creates 47,500 jobs.

According to the recently released U.S. Department of Transportation (USDOT) 2002 Conditions and Performance Report, an average federal investment of $75.9 billion per year will be needed just to maintain the current condition of the highway system. To improve the system would require a federal investment of $106.9 billion per year. For transit investment, the USDOT report estimates the annual cost to maintain the system at $14.8 billion and the annual cost to improve at $20.6 billion.

As Congress begins to reauthorize TEA-21, the FY 2004 Budget Resolution reported by your Committee will set the parameters of the debate. Therefore, we urge you to include a substantial increase in funding in the FY 2004 Budget Resolution to achieve the goal of improving our nation's transportation infrastructure, reducing congestion and improving safety.

We look forward to working with you to achieve a funding level for our national transportation program that addresses these needs and improves the system.

Thank you for your consideration.