Page 4: of Maritime Reporter Magazine (March 1995)

the flexible funding programs the department is developing. The Sec- retary noted that over the last twenty years, the DOT has oper- ated as a giant but unwieldy hold- ing company, while numerous plans for consolidation have been pon- dered and not implemented. Cur- rently, the DOT comprises 10 indi- vidual agencies with jurisdiction over highways, mass transit, traffic safety, aviation, passenger and freight rail, maritime shipping, pipe- lines, transportation statistics, and waterway safety and national de- fense.

Under the restructuring plan: • The Intermodal Transportation

Administration will combine the functions of a majority of the agen- cies in a single dynamic, stream- lined and fully integrated agency. • The FAA will maintain jurisdic- tion over aviation safety, regulation and certification, while its air traffic control (ATC) operations will be- come an independent governmen- tal corporation. • The Coast Guard will maintain authority over maritime navigation, communication and safety stan- dards. "A single intermodal administra- tion will provide enormous benefits for our customers," said Mr. Pena. "Additionally, by keeping safety and infrastructure components together we will be able to assure that safety is factored into all of our investment and funding decisions."

By consolidating these agencies into three, a variety of efficiencies and cost savings will be realized, helping the department to reach budget cutback targets. These in- clude: • Combining and streamlining nu- merous functions such as procure- ment, administration and person- nel and training. • Consolidating regional structures and offices to maximize "one-stop shopping" and facilitating better relationships with state and local governments. Currently, there are different field structures for each of the department's operating agen- cies. • Unifying activities within the de- partment such as highway safety and hazardous materials transpor- tation, both currently shared by three different agencies.

The agencies to be consolidated in the Intermodal Transportation

Administration currently direct 94 percent of the department's national infrastructure investments. This structure will facilitate the merger of the approximately 30 grant, loan and subsidy programs announced in December.

SecretaryPena also affirmed that the Administration will move for- ward with a formal legislative pro- posal to recast the ATC operations of the FAA as an independent gov- ernmental corporation. Under the

Secretary's leadership to date, the

DOT has already eliminated 4,000 ositions, for an annual savings of 250 million. Under the plan, total current DOT employment of ap- proximately 105,000 will be cut nearly 50 percent through the trans- fer off government payroll of 40,000 positions — chiefly through the corporatization of ATC — and through elimination of more than 7,000 other civilian and military positions. According to the DOT, the streamlined department will realize $6.4 billion in budget outlay reductions in the next five years.

Secretary Pena Presents $36.9 Billion DOT Budget

To Congress

Secretary of Transportation

Federico Pena presented to Con- gress the Department of

Transportation's (DOT) budget pro- posal for fiscal year 1996. The $36.9 billion budget proposal is $2 billion less than the budget enacted for fiscal 1995.

The budget proposes to consoli- date funding programs, provide greater decision-making authority for the states and localities and re- duce total civilian employment by more than 6,000 than were included in the fiscal 1993 enacted budget.

The budget proposes a new mari- time security program to support national security. In exchange for payments over a 10-year period, participating vessels will be avail- able to the Department of Defense (DOD) to help meet sealift require- ments. The budget also proposes to increase funding for the mainte- nance and operation of the Ready

Reserve Force (RRF) from $150 mil- • IVOR- ^ ^^ U111I 1 11 1U I U 11/ H1J lili i 11I11J VI

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