authorized level. The additional $50 million in budget authority and outlays is included for additional commuter operating aid as authorized in the Surface Transportation Assistance Act of 1978. The additional operating aid is consistent with the additional $100 million in budget authority and outlays recommeded for fiscal year 1979 supplemental action to fully fund the "2nd-tier" subsidy program. The "2nd-tier" subsidy program is a highly targeted program; 85 percent of the funds will go to cities with a population of over 750,000 and will result in a close match-up of resources with areas of need.

6. Panama Canal Treaty

The Committee assumes that the Panama Canal Commission will be established as an appropriated fund agency rather than a wholly-owned government corporation financed through a revolving fund as proposed by the President. This assumption is based on the belief that establishing the Commission as an appropriated fund agency will improve budgetary control and comprehensibility. The recommendation results in a net deficit impact of the Panama Canal Commission of $-38 million, which is $-52 million from the President's request and represents the excess of revenues received by the Treasury over amounts appropriated for operations and other expenses.

7. Maritime Subsidy Programs

The Committee recommends total maritime subsidies of $359 million in budget authority and $475 million in outlays, incorporating reductions of $50 million in budget authority and outlays due to legislative savings. The legislative savings assumed represent the Committee's concern with the efficacy of the maritime subsidy programs and the high cost for the benefits received.

II. HOUSE COMMITTEES' VIEWS AND ESTIMATES

House Committees recommend $1.3 billion in budget authority and $1.6 billion in outlays above the President's revised budget for additional funding and new initiatives.

The House Public Works and Transportation Committee recommends an additional $660 million in budget authority and $250 million in outlays for highway and mass transportation programs but does not provide a specific breakdown. Also recommended is a fiscal year 1979 surface transportation supplemental of $300 million in budget authority and $100 million in outlays.

The Public Works Committee describes the President's surface transportation funding levels as unnecessarily restraining, particularly for highway programs funded with earmarked trust fund revenues. The Committee recommends a $9.2 billion highway obligation ceiling rather than the $8.5 billion recommended by the President. The Committee recommends an additional $200 million in budget authority and $70 million in outlays for air trust fund program authorizations in anticipation of proposed legislation.

The Committee on the District of Columbia recommends Washington METRO construction of $400 million in budget authority

and outlays, $125 million more that the President's budget authority and $376 million more in outlays.

The Interstate and Foreign Commerce Committee recommends an additional $50 million in budget authority and $548 million in outlays above the President's request. The larger increases recommended are $40 million in budget authority and $166 million in outlays for the National Rail Passenger Corporation (Amtrak), an additional $310 million in outlays for the Consolidated Rail Corporation (ConRail), and an additional $64 million in outlays for the rail service assistance program.

The Merchant Marine and Fisheries Committee recommends $358 million in budget authority and $347 million in outlays above the President. Most of the increase reflects the position that the Panama Canal Commission should be established as an appropriated fund agency rather than a wholly owned U.S. Government Corporation as proposed by the President.

The Appropriations Committee generally supports the President's proposed transportation funding levels. The Appropriations Committee cites strong pressure for increases in air and highway modes and possible changes in requested rail program funding. They recommend that mass transportation funds reprogrammed in fiscal year 1979 be restored in fiscal year 1980.

III. PRESIDENT'S BUDGET

The President's revised budget requests $19,146 million in budget authority and $17,589 million in outlays. The revised request includes a $44 million increase in budget authority for air facilities and equipment program and a $20 million outlay reduction in the maritime capital subsidy program. In addition, the President's budget reflects $22 million in outlays associated with fiscal year 1979 supplementals.

For surface transportation programs, the President's request includes $8,956 million in budget authority and $7,477 million in outlays for highways, $2,473 million in budget authority and $2,539 million in outlays for mass transportation, and $1,695 million in budget authority and $1,780 million in outlays for railroad programs.

The highway request is $405 million in budget authority and $348 million in outlays higher that the estimate for fiscal year 1979; the mass transportation request is $57 million in budget authority and $163 million in outlays higher.

The President's highway program allows for accelerated interstate road and bridge construction but does not support almost $500 million in categorical highway grants subject to appropriations and recommended for review, termination, or funding from other sources. In mass transportation, the President does not recommend approximately $475 million in authorized programs including a number of narrow categorical grants.

The President's rail program includes $250 million in budget authority and $40 million in outlays for a new rail assistance program. In addition, the President projects major spending in the Northeast Corridor project, a reduction in the Amtrak system of 43 percent of the route mileage, and a reduction in ConRail subsidy

43-422 O-79-7

from past levels of approximately $700 million to a minimum of $440 million and a maximum of $550 million.

For air programs, the President's request is $3,804 million in budget authority and $3,635 million in outlays. The President does not project major air funding changes until fiscal year 1981.

For water-mode programs, the President's request is $2,096 million in budget authority and $2,037 million in outlays. The President proposes to continue both the maritime operating and capital subsidy programs as in the past and proposes establishment of the Panama Canal Commission as a wholly-owned U.S. Government Corporation, reflected as a revolving fund in the budget.

For all other transportation programs, the President's request is $171 million in budget authority and outlays for the Interstate Commerce Commission, Office of the Secretary of Transportation, and research and development activities.

IV. EXTRA-BUDGETARY ACTIVITIES RELATED TO THIS FUNCTION

I. HOUSE BUDGET COMMITTEE RECOMMENDATIONS

The Committee recommends $8,303 million in budget authority and $7,348 million in outlays for this function, a decrease of $2,956 million in budget authority and a decrease of $23 million in outlays below the President's budget, and a decrease of $5,197 million in budget authority and a decrease of $852 million in outlays below the House committee views and estimates.

Economic assumptions adopted by the Budget Committee do not project a need for extensive actions to ease the fiscal strain of an economic downturn among States and local governments. However, the Committee recognizes the uncertainty of economic projections. In the event that dramatic changes occur in the economy by the second half of the year, the Committee will review the assumptions adopted in time to make any revisions necessary in the Second Concurrent Resolution.

A description of this function including the major programs included within it appears in Appendix A.

Explanation of Committee Recommendation

1. Fiscal Year 1980 Impact of Fiscal Year 1979 Supplementals The Committee assumes that two urban initiative supplementals for the Livable Cities and Neighborhood Self-Help Development programs, resulting in $12 million outlays in fiscal year 1980 will be enacted in fiscal year 1979. The recommendation assumes that the pending fiscal year 1979 supplemental request for $620 million for the Small Business Administration Disaster Loan program will not be enacted.

2. National Development Bank Replacement

The Committee assumes $500 million in budget authority and $50 million in outlays for a consolidation of economic development assistance programs recently proposed by the administration. The recommendation also includes an additional $275 million in budget authority and $40 million in outlays for an expanded Urban Development Action Grants (UDAG) program. The President's budget originally proposed $3,530 million in budget authority and $195 million in outlays for a National Development Bank. This request was later revised to propose a restructuring of economic development programs and an expansion of the HUD UDAG program. The Committee believes that the amounts included in the Resolution are adequate for legislation to consolidate economic and community development programs.

2. Inland Energy Impact Proposal

The Committee assumes that the proposed inland energy impact assistance program will not be funded in fiscal year 1980. Similar legislation was proposed but not enacted last year. The Committee understands from the Administration that existing Federal programs and a portion of the expanded funding for the Economic Development Administration assumed in this budget will be used to help finance infrastructure costs for communities undergoing rapid population growth due to energy development.

4. Small Business Administration Disaster Loans

The Committee assumes $60 million in budget authority and $20 million in outlays for the SBA Disaster Loan program. The Committee recognizes the sizable contingency of this program if legislative reforms are not enacted and hence strongly supports legislative reforms in the SBA program to eliminate crop and livestock