[Senate Hearing 109-232]
[From the U.S. Government Publishing Office]
S. Hrg. 109-232
NOMINATIONS TO THE DEPARTMENT OF TRANSPORTATION
=======================================================================
HEARING
before the
COMMITTEE ON COMMERCE,
SCIENCE, AND TRANSPORTATION
UNITED STATES SENATE
ONE HUNDRED NINTH CONGRESS
FIRST SESSION
__________
APRIL 26, 2005
__________
Printed for the use of the Committee on Commerce, Science, and
Transportation
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SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
ONE HUNDRED NINTH CONGRESS
FIRST SESSION
TED STEVENS, Alaska, Chairman
JOHN McCAIN, Arizona DANIEL K. INOUYE, Hawaii, Co-
CONRAD BURNS, Montana Chairman
TRENT LOTT, Mississippi JOHN D. ROCKEFELLER IV, West
KAY BAILEY HUTCHISON, Texas Virginia
OLYMPIA J. SNOWE, Maine JOHN F. KERRY, Massachusetts
GORDON H. SMITH, Oregon BYRON L. DORGAN, North Dakota
JOHN ENSIGN, Nevada BARBARA BOXER, California
GEORGE ALLEN, Virginia BILL NELSON, Florida
JOHN E. SUNUNU, New Hampshire MARIA CANTWELL, Washington
JIM DeMint, South Carolina FRANK R. LAUTENBERG, New Jersey
DAVID VITTER, Louisiana E. BENJAMIN NELSON, Nebraska
MARK PRYOR, Arkansas
Lisa J. Sutherland, Republican Staff Director
Christine Drager Kurth, Republican Deputy Staff Director
David Russell, Republican Chief Counsel
Margaret L. Cummisky, Democratic Staff Director and Chief Counsel
Samuel E. Whitehorn, Democratic Deputy Staff Director and General
Counsel
Lila Harper Helms, Democratic Policy Director
C O N T E N T S
----------
Page
Hearing held on April 26, 2005................................... 1
Statement of Senator Allen....................................... 5
Statement of Senator Inouye...................................... 3
Prepared statement........................................... 3
Statement of Senator Lautenberg.................................. 2
Statement of Senator McCain...................................... 2
Statement of Senator Stevens..................................... 1
Prepared statement........................................... 7
Witnesses
Cino, Maria, Deputy Secretary-Designate, Department of
Transportation................................................. 7
Prepared statement........................................... 9
Biographical information..................................... 9
Clinton, Hon. Hillary Rodham, U.S. Senator from New York......... 4
Scheinberg, Phyllis F., Assistant Secretary of Transportation for
Budget and Programs/Chief Financial Officer-Designate,
Department of Transportation................................... 13
Prepared statement........................................... 13
Biographical information..................................... 14
Appendix
Response to Written Questions Submitted by Hon. Daniel K. Inouye
to:
Maria Cino................................................... 27
Phyllis F. Scheinberg........................................ 29
NOMINATIONS TO THE DEPARTMENT OF TRANSPORTATION
----------
TUESDAY, APRIL 26, 2005
U.S. Senate,
Committee on Commerce, Science, and Transportation,
Washington, DC.
The Committee met, pursuant to notice, at 10:03 a.m. in
room SR-253, Russell Senate Office Building, Hon. Ted Stevens,
Chairman of the Committee, presiding.
OPENING STATEMENT OF HON. TED STEVENS,
U.S. SENATOR FROM ALASKA
The Chairman. While we are waiting for our Co-Chairman, let
me thank you all for coming. Perhaps we could have an
opportunity to have the two nominees introduce their family who
are here. Ms. Scheinberg, would you like to tell us who is with
you for the record today.
Ms. Scheinberg. Thank you, Senator. I would like to
introduce: my father, Jacob Factor; my husband, David Turner;
and my son, Eric Turner.
The Chairman. Thank you very much. It is nice to have you
here.
Ms. Cino, I understand you have----
Ms. Cino. I have my Northern Virginia family here.
The Chairman. It is a notorious family you brought with you
this morning.
[Laughter.]
Ms. Cino. Yes, sir, I have been told.
But I have my two godchildren here, Mattie and Emma
Carville.
The Chairman. Good morning, thank you.
Ms. Cino. And many members of my wonderful friends that are
here to support me and have really been responsible for me
being here.
The Chairman. Thank you very much.
Jim and Mary, we are happy to have you here. It is nice of
you to come.
We want to wait just a second here for Dan if we can. I
would say for the record that we are meeting today on short
notice on the nominations of Mario Cino and Phyllis Scheinberg.
The President nominated Mario Cino to be Deputy Secretary of
Transportation on April 6th and Ms. Scheinberg was nominated on
April 14th. Each has come to us with tremendous recommendations
and there has been an expression of urgency that we proceed
with these nominations.
Senator Inouye is on the way, John. But do you have a
statement to make first?
STATEMENT OF HON. JOHN McCAIN,
U.S. SENATOR FROM ARIZONA
Senator McCain. I am sure that our distinguished Senators
Allen and Clinton will say whatever is necessary. I would like
to say, Mr. Chairman, if we are waiting for Senator Inouye,
that I do happen to know both nominees and I think they are
highly qualified. I also think, if I could mention Ms.
Scheinberg in particular, she has done some outstanding work on
pipeline safety, on Amtrak, on a number of other issues that I
think have been really, really enormously helpful to the work
of this Committee, and I welcome both nominees.
I thank you, Mr. Chairman.
The Chairman. Yes, I would join that. I read through your
background and the statements you filed, and the enormous
number of reports that you are responsible for over the years.
It is just something else.
We are waiting for Senator Inouye. Senator, would you like
to make any comments?
STATEMENT OF HON. FRANK R. LAUTENBERG,
U.S. SENATOR FROM NEW JERSEY
Senator Lautenberg. If I may. I would just like to say that
I thank you for holding this hearing on these two important
positions. I am concerned about the Administration's
transportation policy. First, the administration for the first
time during war years decided to reduce revenues by ordering
tax breaks for the wealthiest among us. That of course then
makes less funds available for other projects that require some
attention. Faced with record deficits, the Bush tax cut forces
us to slash programs that middle class families depend on every
day, including transportation programs.
There can be no mistake about it. Americans are totally
dependent on transportation--our country built its economy and
its culture on our national transportation system, which
includes highways, waterways, railroads, and airports. Security
and safety are among the most paramount things in all of these
modes.
The federal leadership and support of our national
transportation system helps commuters, students, businesses,
everybody in our country. In short, federal transportation
programs make our Nation safer, more secure, and more
prosperous. To shortchange federal transportation programs in
these areas I think would be a terrible mistake.
Instead of making the investments that would improve our
transportation system, it has been proposed that $119 billion
less be spent on our country's surface transportation system,
the amount needed to maintain the status quo, and that is
according to U.S. DOT. In addition, the President's 2006 budget
proposal calls for bankrupting our passenger rail system. To do
this in the wake of 9/11, when that was the one mode of
transportation that worked when our aviation system was shut
down, is outrageous.
The administration continues, I think, to risk the safety
and security of air travelers by pursuing the outsourcing and
privatization of air traffic control and aviation security
functions. Did we not learn anything from 9/11, when the
terrorists were able to board planes with deadly weapons? When
it comes to airline security, we have got to put passengers
first.
We take our highways, our rail system, and our airports for
granted. But the future efficiency and safety of our
transportation systems are not guaranteed unless we provide the
leadership in building a national transportation system for the
21st century.
If present trends continue, freight traffic on our highways
will double, adding lots more trucks to our roads. Commuters
will spend more time stuck in traffic and as highway congestion
becomes commonplace in more places we are going to have more
pollution resulting. The lines and delays at airports are going
to get worse.
If we follow the course laid out by the Administration, we
are looking at gridlock on our roads and on our airport runways
and few choices for travelers. I travel by air frequently
between here and home and often we are stuck at the airport
waiting for traffic to clear. We have narrowed the separation
between airplanes to try and accommodate more airplanes in the
sky and to suddenly think that we can be better off without our
national passenger railroad system just does not make sense.
It is a grim picture. I know many of my colleagues share my
concerns and I hope we can make a difference.
I thank our witnesses for being here today, for their
intention to help move transportation concerns further along
with our needs. I look forward to working with them.
Mr. Chairman, thank you very much.
The Chairman. Senator Inouye, do you have any comments to
make?
STATEMENT OF HON. DANIEL K. INOUYE,
U.S. SENATOR FROM HAWAII
Senator Inouye. Mr. Chairman, I thank you very much. I wish
to congratulate our two ladies, Ms. Scheinberg and Ms. Cino,
and welcome our colleagues. I have a prepared statement I would
like to make part of the record.
The Chairman. Without objection, it will be put in the
record.
[The prepared statement of Senator Inouye follows:]
Prepared Statement of Hon. Daniel K. Inouye, U.S. Senator from Hawaii
Good Morning, Ms. Cino and Ms. Scheinberg. Thank you for appearing
before us as we consider your nominations to become Deputy Secretary of
the Department of Transportation and Assistant Secretary for Budget and
Programs and Chief Financial Officer to the Department of
Transportation, respectively.
I look forward to hearing your views of how your past experiences
will assist you in addressing the challenges posed by these positions.
Ms. Cino, we are depending on you to offer steady leadership at the
Department, and to make certain that the safety of our nation's
transportation system remains the top priority at the agency.
At the same time, you must provide the necessary guidance to
develop and advance credible concepts to enhance the national
transportation system and improve the movement of goods and people
across the United States.
I am extremely concerned by the Administration's funding plans for
the nation's aviation programs in recent years. The Federal Aviation
Administration (FAA) has seen massive cuts to their Facilities and
Equipment (F&E) account since Fiscal Year (FY) 2004, which will place
our international leadership in the realm of aerospace in jeopardy and
damage our ability to address the pending capacity and congestion
crisis in our skies.
Along with proposed reductions to the Airport Improvement Program
(AIP), President Bush has cut more than $1 billion in critical aviation
funding in the past two years. You must provide direction at the
Department to make certain aviation needs are properly funded.
I am also concerned about the lack of compromise that has delayed
important transportation laws. Currently, Congress is working to pass
the highway funding legislation, but we have been stuck in this log jam
since last Congress. I believe we could have passed a good bill that
would have provided crucial funding and important job opportunities if
the Administration would show flexibility and provide the needed
guidance to get this done.
Similarly, the Department's radical Amtrak reauthorization plan and
budget proposal to bankrupt the railroad, developed without
consultation with our Committee, suggests that the Administration is
more interested in making grand statements than sincerely working with
the Congress to improve intercity passenger rail service in our
country. I believe, and I hope you agree, that building the bridges of
communication with the legislative branch is an essential task of every
nominee.
The position for which you are nominated will be particularly
important in the immediate future, especially as we work toward
domestic and international agreements in various aspects of aviation.
We need someone who will work with Congress.
Ms. Scheinberg, you also have a great task before you as fiscal
belt tightening is occurring across the Federal Government while the
nation's transportation system has greater funding needs than ever.
Again, thank you for appearing before us today. I look forward to
hearing your testimony.
The Chairman. Senator Clinton, we would be pleased to have
you introduce Ms. Cino.
STATEMENT OF HON. HILLARY RODHAM CLINTON,
U.S. SENATOR FROM NEW YORK
Senator Clinton. Thank you, Mr. Chairman, and thanks to you
and Senator Inouye, Senator McCain, and Senator Lautenberg for
allowing me to come today and introduce a native New Yorker to
you.
Mary Cino is currently serving as Counselor to the
Secretary of Transportation and she has been nominated by the
President to serve as the Deputy Secretary of Transportation.
She was born and raised in Buffalo, New York, which is one of
the greatest cities in the country. She is a graduate of St.
John Fisher College in Rochester, New York, another great city
in upstate New York, and she worked for years for former
Congressman Bill Paxon, eventually becoming his chief of staff.
She has recently served as Assistant Secretary and Director
General of the United States and Foreign Commercial Service at
the U.S. Department of Commerce.
As you consider her nomination, I know the Committee has
several important policy matters that are before you. Senator
Lautenberg referred to some of them. The Department of
Transportation is the key agency responsible for overseeing the
formulation of national transportation policy and promoting
intermodal transportation across our Nation. This is an
important job at any time, but I think it is particularly
crucial at this moment in our country's history.
Mary Cino comes with a lot of energy, a lot of
intelligence, and certainly a great network of friends and
extended family. She introduced James Carville and Mary Matalin
and their daughters Mattie and Emma, who are her goddaughters.
She has a great desire to serve in public service.
I am very concerned about a lot of the issues that she will
be responsible for dealing with and I hope that as we consider
the new transportation bill that will be before the Senate this
week we will consider the role of national passenger rail, we
will consider the possibility of being visionary enough to look
at high-speed rail. It would be a great boon to upstate New
York to have high-speed train between Cleveland and Buffalo,
between Buffalo and New York City.
I also hope that we will look at some of the aviation
issues. Mr. Chairman, the New York TRACON is one of the busiest
air traffic control facilities in the Nation and the number of
errors have been reported to be increasing due to increased
demand on the controllers. As someone who flies in and out of
New York airports every single week, I am very concerned and
will continue to work with the Department of Transportation,
the FAA, and this Committee to make sure that air travel is
safe in the air as well as when we board our planes because of
the increased need for security.
I hope the Committee will also work with Ms. Cino and the
Department of Transportation to ensure that Essential Air
Service remains funded. It is designed to provide air service
to small isolated communities and, although I know many of my
colleagues, when you think of New York, you think of Manhattan,
but it has huge areas of isolation and sparse population and
essential air service in the north country near Fort Drum, as
well as in western New York near Buffalo, where Ms. Cino grew
up, is very important to our continuing economic prosperity.
Also, going hand in hand with that is the plans recently
announced to close air traffic control facilities. Towers at
the greater Rochester, Albany, and Syracuse Hancock
International Airports could be potentially impacted, which
would close control towers from midnight to 5 a.m., which would
have consequences for aviation across our state.
So it is exciting to see someone from New York, who
understands these problems, being nominated for this important
position. I look forward to working with you on the Committee
and, should Ms. Cino be confirmed, working with her to deal
with so many of the issues that are important to New York and
America.
I thank you for the courtesy of allowing me to appear.
Thank you.
The Chairman. Senator Allen, would you introduce Ms.
Scheinberg, please.
STATEMENT OF HON. GEORGE ALLEN,
U.S. SENATOR FROM VIRGINIA
Senator Allen. Thank you. Mr. Chairman, Senator Inouye,
Senator McCain, Senator Lautenberg: I am here to introduce two
highly qualified Virginians who have been nominated to serve at
the Department of Transportation. Both have distinguished
careers in public service and will help tackle the daunting
tasks and problems that face our Nation's transportation
system.
Let me first start with Maria Cino. She may be from
Buffalo, as are Jack Kemp, Jim Kelly, Bruce Smith at one time
and Marv Levy, but I am glad she moved to Virginia. I will not
list all Virginia transportation priorities other than to say I
am glad that she is in Virginia and will have to cross over
bridges, understands the importance of high-speed rail, and we
are happy to work with her to re-open Reagan National Airport
to general aviation, an issue for this Committee.
Senator McCain. These are issues for the Committee.
Senator Allen. Excuse me? They are. I have a bill and I
know you will all be supportive of it, and I do not think it is
actually the Department of Transportation that is the problem.
My relationship and friendship with Maria go back to 1991
when she was chief of staff to Bill Paxon. She has worked in a
number of positions in the private as well as public sector. As
was stated by Senator Clinton, she was appointed by President
Bush and also confirmed by the U.S. Senate as Assistant
Secretary and Director General of the U.S. and Foreign
Commercial Service. In that role--it is important to understand
the management and the responsibility in that role--she managed
a worldwide group that helped small and medium-sized businesses
export their product or provide their services abroad and also
sought to protect our small businesses overseas.
She oversaw and distributed an annual budget of $200
million and supervised 1,700 employees at 105 domestic offices
and 162 international offices. While at Commerce, where showing
good management and making sure you have a capable, skilled
work force are so important, she worked to create the
professional development department to provide consistent and
ongoing training for headquarters, domestic, and international
staff.
She also has worked in the private sector as a public
policy and government affairs consultant to the law firm of
Wiley Rein and Fielding in Washington, DC. During this time she
used her management, legislative and political experience to
represent corporations and trade associations on a wide range
of issues before Congress.
I have worked with her over the years and I can say to my
colleagues she is an outstanding individual. She has strong
management skills. She has a good, calm head on her shoulders
and she gets the job done. I think with her cheerful
personality and successful leadership, Maria Cino will be an
outstanding Deputy Secretary of Transportation.
It is also my pleasure to introduce and present to the
Committee Phyllis Scheinberg as the nominee for Assistant
Secretary for Budget and Programs and Chief Financial Officer
at the Department of Transportation. Phyllis has also served in
a number of roles in government. She comes to this nomination
as the Deputy Assistant Secretary of Transportation for Budget
and Programs, overseeing the development and presentation of
the Department of Transportation's budget requirements.
Prior to joining the Department of Transportation, Ms.
Scheinberg was the Director of Transportation Issues at the
General Accounting Office, where she directed reports,
testimony, and briefings on a multitude of surface
transportation issues. In this capacity, she testified before
Congress on topics including the financial viability of
Amtrak--I know that is a key concern of this Committee,
particularly to Senator McCain--and also on a particularly
relevant topic today, the reauthorization of TEA-21.
Before working on transportation issues at GAO, Phyllis
served as a Senior Budget Examiner for Transportation and
Natural Resources at the Office of Management and Budget. She
originally came to Washington, DC, as a presidential management
intern in 1979.
She has been a resident of the Commonwealth of Virginia for
26 years. She and her husband David Turner live in North
Arlington. Both her children, Diane and Eric, attend public
schools. Eric is currently a student at the Thomas Jefferson
High School for Science and Technology. She also recruited her
80-year-old father to move to Virginia as well.
So, Mr. Chairman, thank you for holding a hearing in a
prompt manner on these two outstanding, exceptional, well
qualified nominees who have shown good judgment. They could
live in a lot of different places when coming to this region.
Both chose wisely in going to Virginia.
Thank you very much.
The Chairman. Thank you very much, Senator.
Without objection, I will print the statement I would have
made at the beginning of the hearing and turn to Ms. Cino for
any comments she wishes to make.
[The prepared statement of Senator Stevens follows:]
Prepared Statement of Hon. Ted Stevens, U.S. Senator from Alaska
The Committee will come to order.
I thank the Committee for meeting on short notice for today's
hearing on the nominations of Maria Cino and Phyllis Scheinberg.
President Bush nominated Maria Cino to be Deputy Secretary of
Transportation on April 6, 2005.
Her previous positions in government include 2 years as Assistant
Secretary of Commerce and Director General of the Foreign Commercial
Service.
She led the Administration's export promotion effort at the
Commerce Department. She managed 1,700 employees at an agency with
offices in more than 80 countries.
The President nominated Phyllis Scheinberg to be Assistant
Secretary of Transportation on April 14, 2005.
Ms. Scheinberg has a distinguished career in federal service
devoted to transportation issues. She has served as Deputy Assistant
Secretary of DOT, as a director of transportation issues at GAO, and as
a budget examiner at OMB.
She brings vital experience to a department with enormous financial
responsibilities, including the aviation and highway trust funds and
new rail infrastructure projects.
I thank the witnesses for their testimony today.
STATEMENT OF MARIA CINO, DEPUTY
SECRETARY-DESIGNATE, DEPARTMENT OF TRANSPORTATION
Ms. Cino. Thank you, Chairman Stevens, Senator Inouye, and
Members of the Committee. It is an honor for me to appear
before you today as President Bush's nominee to serve as the
next Deputy Secretary of Transportation. I would especially
like to thank Senator Clinton from my home State of New York
for her kind words, and I would like to thank my friend Senator
Allen, from my now home State of Virginia, for his kind words.
I am grateful to President Bush and our Secretary of
Transportation, Norm Mineta, for the support of my nomination.
I am a great admirer of Secretary Mineta. He is a statesman in
the truest sense of the word and he is incredibly knowledgeable
and passionate about our Nation's transportation system.
As the Members of this Committee understand so well,
transportation is the engine that drives the American economy.
It is imperative to keep the Department responsible for this
vital network operating at peak efficiency as we approach the
challenging road ahead.
The Deputy Secretary is the chief operating officer of the
Department, responsible for seeing this Nation's vast network
of highways and railways, seaways, airports, pipelines, and
transit systems continue to operate safely, reliably, and
efficiently, all the while looking ahead to anticipate and
prepare for tomorrow's transportation demands in an
increasingly interconnected world.
While I could not claim to have Secretary Mineta's vast
expertise on transportation, what I will be able to bring to
the Department should I be confirmed is the benefit of nearly
25 years of managing and leading field-based operations,
developing and adhering to complex budgets, setting short and
long-term strategic goals, building coalitions, developing,
motivating, and mentoring staffs.
Included in this experience is an understanding of the
importance of working with Members of Congress on both sides of
the aisle and an extensive network of contacts in federal,
state, and local agencies. During the President's first term, I
had the privilege of being confirmed by the Senate for the
position of Assistant Secretary and Director General of the
United States Foreign Commercial Service. In fact, it was 4
years ago almost to the day on which I appeared here before
this Committee and the Committee on Banking, Housing, and Urban
Affairs.
My experience as Director General of the Commercial Service
instilled a deep appreciation of the dedicated and
compassionate public servants who work for America. I relied on
their expertise and advice to do my job and I believe that my
leadership skills and management strengths helped them to do
their jobs.
At the Commercial Service, my job was helping connect U.S.
businesses with export opportunities, giving me a firsthand
look at the critical role of transportation networks in a
global economy. Transportation links were major considerations
and major factors in our success, whether it was the
availability of air service to connect potential buyers and
sellers or the entire intermodal system chain that served as
the essential artery through which international commerce
flows.
I know of no Department that affects more people's life as
directly as Transportation. If confirmed, I look forward to the
opportunity to help this essential Department and its employees
continue to excel and to make sure that the Department invests
its resources wisely and well to deliver the infrastructure
that will keep America and the American economy moving forward.
Again, I thank you for this opportunity to appear today and
I am happy to answer any questions.
[The prepared statement and biographical information of Ms.
Cino follows:]
Prepared Statement of Maria Cino, Deputy Secretary-Designate,
Department of Transportation
Thank you, Chairman Stevens, Senator Inouye, and Members of the
Committee.
It is an honor for me to appear before you today as President
Bush's nominee to serve as the next Deputy Secretary of Transportation.
I am grateful to President Bush and Secretary of Transportation
Norm Mineta for their support of my nomination. I am a great admirer of
Secretary Mineta. He is a statesman in the truest sense of the word,
and he is incredibly knowledgeable and passionate about our Nation's
transportation system.
As the Members of this Committee understand so well, transportation
is the engine that drives the American economy. It is imperative to
keep the Department responsible for this vital network operating at
peak efficiency as we approach a challenging road ahead.
The Deputy Secretary is the Chief Operating Officer of the
Department responsible for seeing that this Nation's vast network of
highways and railways, our seaways, airports, pipelines, and transit
systems continue to operate safely, reliably, and efficiently all the
while looking ahead to anticipate and prepare for tomorrow's
transportation demands in an increasingly interconnected world.
While I cannot claim to have Secretary Mineta's vast expertise on
transportation, what I will be able to bring to the Department, should
I be confirmed, is the benefit of my nearly 25 years of managing and
leading field-based organizations; developing and adhering to complex
budgets; setting short- and long-term strategic goals; building
coalitions; and developing, motivating, and mentoring staffs.
Included in this experience is an understanding of the importance
of working with Members of Congress on both sides of the aisle, and an
extensive network of contacts in federal, state, and local agencies.
During the President's first term, I had the privilege of being
confirmed by the Senate for the position of Assistant Secretary and
Director General of the Department of Commerce's United States and
Foreign Commercial Service. This office is charged with export
promotion and at that time had offices in 85 countries and 47 states
and 1,700 employees.
In fact, it was 4 years ago, almost to the day, on which I appeared
before this very Committee as well as the Committee on Banking, Housing
and Urban Affairs for confirmation hearings for that position.
My experience as Director General of the Commercial Service
instilled a deep appreciation of the dedicated and compassionate public
servants who work for America. I relied on their expertise and advice
to do my job, and I believe that my leadership skills and management
strengths helped them to do their jobs better.
At the Commercial Service, my job was helping connect U.S.
businesses with export opportunities, giving me a first-hand look at
the critical role of transportation networks in the global economy.
Transportation links were major considerations, and major factors
in our success, whether it was the availability of air services to
connect potential buyers and sellers or the entire intermodal supply
chain that serve as the essential artery through which international
commerce flows.
I know of no Department that affects more peoples' lives as
directly as Transportation. If confirmed, I look forward to the
opportunity to help this essential Department and its employees
continue to excel, and to make sure that the Department invests its
resources wisely and well to deliver the infrastructure that will keep
America, and the American economy, moving forward.
Again, thank you for the opportunity to appear before you today,
and I will be happy to answer any questions you may have.
______
a. biographical information
1. Name (Include any former names or nicknames used): Maria Cino.
2. Position to which nominated: Deputy Secretary for the Department
of Transportation.
3. Date of Nomination: April 6, 2005.
4. Address (List current place of residence and office addresses):
Information not released to the public.
5. Date and Place of Birth: April 19, 1957 in Buffalo, New York.
6. Provide the name, position, and place of employment for your
spouse (if married) and the names and ages of your children (including
stepchildren and children by a previous marriage): Single, no children
7. List all college and graduate degrees. Provide year and school
attended.
School: St. John Fisher College
Attended: 1975-1979
Degree: BA-Political Science
Degree Granted: May 1979
School: University of Dayton School of Law
Attended: 1979-1980
Degree: Did not complete.
Degree Granted: None.
8. List all management-level jobs held and any non-managerial jobs
that relate to the position for which you are nominated.
Republican National Committee
Deputy Chairman
June 2003-April 2005
Department of Commerce
Assistant Secretary for Commerce and Director General of the
United States and Foreign Commercial Service
April 2001- June 2003
Republican National Committee
Deputy Chairman for Political Operations and Congressional
Affairs
Washington, DC
May 2000-March 2001
Bush for President, Inc.
National Political Director
Austin, TX
March 1999-April 2000
Wiley, Rein & Fielding
Government Affairs Consultant
Washington, DC
March 1997-March 1999
National Republican Congressional Committee
Executive Director
Washington, DC
January 1993-March 1997
Congressman Bill Paxon
Chief of Staff
Washington, DC
January 1989- January 1993
Paxon for Congress
Campaign Manager
West Seneca, NY
August 1988-December 1988
American View Point
Research Analyst
Alexandria, VA
January 1986- July 1988
Republican National Committee
Executive Assistant to the Political Director, January 1985-
January 1986
State and Local Programs Director, January 1983- January 1985
Program Director, Political Education, July 1981- January 1983
Washington, DC
Bo Sullivan for Governor
Assistant Research Director
Bo Sullivan for Governor Committee
Essex, New Jersey
January 1981- June 1981
9. List any advisory, consultative, honorary or other part-time
service or positions with federal, state, or local governments, other
than those listed above, within the last 5 years.
Department of Commerce
Senior Advisor
April 2001- June 2003
10. List all positions held as an officer, director, trustee,
partner, proprietor, agent, representative, or consultant of any
corporation, company, firm, partnership, or other business, enterprise,
educational or other institution within the last 5 years.
Wish List--Political Group
Board Member
1997-1999
VIEW PAC--Political Group
President
1997-2000
Enterprise Works--Non-Profit
Trustee
1988-2001, resigned 02/01
11. Please list each membership you have had during the past 10
years or currently hold with any civic, social, charitable,
educational, political, professional, fraternal, benevolent or
religious organization, private club, or other membership organization.
Include dates of membership and any positions you have held with any
organization. Please note whether any such club or organization
restricts membership on the basis of sex, race, color, religion,
national origin, age or handicap.
National Republican Congressional Committee, Executive
Director, 1993-1997
Bush for President, Inc., National Political Director, 1999-
2000
Republican National Committee, Deputy Chairman of Political
Operations and Congressional Affairs, 2000-2001
Wish List, Board, 1997-1999
VIEW PAC, President, 1997-1999
12. Have you ever been a candidate for public office? If so,
indicate whether any campaign has any outstanding debt, the amount, and
whether you are personally liable for that debt: No.
13. Itemize all political contributions to any individual, campaign
organization, political party, political action committee, or similar
entity of $500 or more for the past 10 years.
Political Contributions:
VIEW PAC $1,000
Wish List $1,500
Collins for Senate $500
Swift Committee $500
Lazio 2000, Inc. $1,000
Bush for President $2,000
14. List all scholarships, fellowships, honorary degrees, honorary
society memberships, military medals and any other special recognition
for outstanding service or achievements.
St. John Fisher College--Honorary Doctorate
15. Please list each book, article, column, or publication you have
authored, individually or with others, and any speeches that you have
given on topics relevant to the position for which you have been
nominated. Do not attach copies of these publications unless otherwise
instructed.
I have not authored any books, articles, columns or
publications. Speeches I have given over the past decade are
related to political updates and the political environment.
Additionally, while at the Department of Commerce, U.S. Foreign
Commercial Service, I gave speeches promoting President Bush's
Free Trade Agreement and the importance of trade.
16. Please identify each instance in which you have testified
orally or in writing before Congress in a non-governmental capacity and
specify the subject matter of each testimony: None.
b. potential conflicts of interest
1. Describe all financial arrangements, deferred compensation
agreements, and other continuing dealings with business associates,
clients, or customers: None.
2. Do you have any commitments or agreements, formal or informal,
to maintain employment, affiliation or practice with any business,
association or other organization during your appointment? If so,
please explain: None.
3. Indicate any investments, obligations, liabilities, or other
relationships which could involve potential conflicts of interest in
the position to which you have been nominated.
Please refer to the U.S. Department of Transportation Office of
General Counsel's Opinion Letter.
4. Describe any business relationship, dealing, or financial
transaction which you have had during the last 5 years, whether for
yourself, on behalf of a client, or acting as an agent, that could in
any way constitute or result in a possible conflict of interest in the
position to which you have been nominated: None.
5. Describe any activity during the past 5 years in which you have
been engaged for the purpose of directly or indirectly influencing the
passage, defeat, or modification of any legislation or affecting the
administration and execution of law or public policy.
While employed at the Department of Commerce, U.S. Foreign &
Commercial Service, I promoted President Bush's Free Trade
Agreement and the importance of trade.
6. Explain how you will resolve any potential conflict of interest,
including any that may be disclosed by your responses to the above
items.
Please refer to the U.S. Department of Transportation Office of
the General Counsel's Opinion Letter.
c. legal matters
1. Have you ever been disciplined or cited for a breach of ethics
by, or been the subject of a complaint to any court, administrative
agency, professional association, disciplinary committee, or other
professional group? No.
2. Have you ever been investigated, arrested, charged, or held by
any federal, state, or other law enforcement authority of any federal,
state, county, or municipal entity, other than for a minor traffic
offense? No.
3. Have you or any business of which you are or were an officer
ever been involved as a party in an administrative agency proceeding or
civil litigation? If so, please explain.
While serving as Executive Director of the National Republican
Congressional Committee (01/1993-03/1997) and as Deputy
Chairman of the Republican National Committee (06/2003-04/
2005), complaints were lodged against the Committees by the
Federal Election Commission.
It is very common to have political organizations file
complaints with the Federal Election Commission, especially
during an election year. The National Republican Congressional
Committee and the Republican National Committee, likewise file
complaints against other political organizations.
4. Have you ever been convicted (including pleas of guilty or nolo
contendere ) of any criminal violation other than a minor traffic
offense? No.
5. Please advise the Committee of any additional information,
favorable or unfavorable, which you feel should be disclosed in
connection with your nomination: None.
6. Have you ever been accused, formally or informally, of sexual
harassment or discrimination on the basis of sex, race, religion or any
other basis? No.
d. relationship with committee
1. Will you ensure that your department/agency complies with
deadlines for information set by congressional committees? Yes.
2. Will you ensure that your department/agency does whatever it can
to protect congressional witnesses and whistle blowers from reprisal
for their testimony and disclosures? Yes.
3. Will you cooperate in providing the Committee with requested
witnesses, including technical experts and career employees, with
firsthand knowledge of matters of interest to the Committee? Yes.
4. Are you willing to appear and testify before any duly
constituted committee of the Congress on such occasions as you may be
reasonably requested to do so? Yes.
The Chairman. Thank you very much.
Ms. Scheinberg, do you have a statement?
STATEMENT OF PHYLLIS F. SCHEINBERG, ASSISTANT
SECRETARY OF TRANSPORTATION FOR BUDGET AND
PROGRAMS/CHIEF FINANCIAL OFFICER-DESIGNATE,
DEPARTMENT OF TRANSPORTATION
Ms. Scheinberg. Yes, sir. Thank you, Mr. Chairman, Senator
Inouye, Senator McCain, and Senator Lautenberg. I want to thank
Senator Allen for his kind introduction. It is an honor for me
to appear before you today, having been selected by Secretary
Mineta and President Bush for the position of Assistant
Secretary for Budget and Programs and Chief Financial Officer
of the Department of Transportation. If confirmed, I look
forward to working with you closely and this Committee on
transportation issues.
Throughout almost 26 years of federal service, I have
worked in the area of transportation finance and oversight.
During this time I have come to understand and appreciate the
vital role that a safe, secure, and dependable transportation
system plays in keeping our economy strong. I also understand
the importance of the Executive and Legislative branches
working together as a team to improve the Nation's
transportation policies, programs, and financing.
For many years I have worked closely with the Congress and
this Committee in particular. If confirmed, I look forward to
working with all of you as we develop new solutions to our
Nation's transportation needs.
I recognize the significant investment American taxpayers
have made in developing, maintaining, and improving our
transportation system. That is why as Assistant Secretary and
CFO, my top priority would be to ensure that our financial
investment in transportation is managed as effectively and
efficiently as possible.
I am committed to continued improvement of the processes
and systems needed to ensure proper oversight of the funds
entrusted to us. We have a responsibility to ensure that the
traveling public and our business community receive the
greatest return on their transportation investment.
As a career public servant, I am deeply honored to be
considered for this important position. Over the years, I have
seen firsthand the positive benefits that open exchange of
information and collaboration can provide in addressing
transportation issues. I am proud to have dedicated my career
to this important mission.
If confirmed as Assistant Secretary and CFO, I pledge to
work closely with the Congress, to be a good steward of
American transportation dollars, and to safeguard the financial
resources of the Department of Transportation.
Thank you again and I look forward to any questions you may
have.
[The prepared statement and biographical information of Ms.
Scheinberg follows:]
Prepared Statement of Phyllis F. Scheinberg, Assistant Secretary of
Transportation for Budget and Programs/Chief Financial
Officer-Designate, Department of Transportation
Thank you, Mr. Chairman, Senator Inouye and Members of the
Committee. It is an honor for me to appear before you today and to have
been selected by Secretary Mineta and President Bush for the position
of the Assistant Secretary for Budget and Programs and Chief Financial
Officer at the Department of Transportation. If confirmed, I look
forward to working closely with this Committee on transportation
issues.
Throughout almost 26 years of federal service, I have worked in the
area of transportation finance and oversight. During this time, I have
come to understand and appreciate the vital role that a safe, secure,
and dependable transportation system plays in keeping our economy
strong. I also understand the importance of the Executive and
Legislative Branches working together as a team to improve the nation's
transportation policies, programs, and financing. For many years, I
have worked closely with the Congress and this Committee, in
particular. If confirmed, I look forward to working with all of you as
we develop new solutions for our nation's transportation needs.
I recognize the significant investment American taxpayers have made
in developing, maintaining, and improving transportation. That is why,
as Assistant Secretary and CFO, my top priority would be to ensure that
our financial investment in transportation is managed as effectively
and efficiently as possible. I am committed to continued improvement of
the processes and systems needed to ensure proper oversight of the
funds entrusted to us. We have a responsibility to ensure that the
traveling public and our business community receive the greatest return
on their transportation investment.
As a career public servant, I am deeply honored to be considered
for this important position. Over the years, I have seen first hand the
positive benefits that open exchange of information and collaboration
can provide in addressing transportation issues. I am proud to have
dedicated my career to this important mission. If confirmed as
Assistant Secretary and CFO, I pledge to work closely with the
Congress, to be a good steward of American's transportation dollars,
and to safeguard the financial resources of the Department of
Transportation.
______
a. biographical information
1. Name: (Include any former names or nicknames used):
Phyllis Factor Scheinberg
Phyllis Ann Factor
Phyllis Turner
2. Position to which nominated: Assistant Secretary of
Transportation for Budget and Programs and Chief Financial Officer.
3. Date of Nomination: April 14, 2005
4, Address: (List current place of residence and office addresses).
Residence: Information not released to the public.
Office: U.S. Department of Transportation 400 7th Street, SW,
Room 10101 Washington, DC 20590.
5. Date and Place of Birth: 02/20/48--Everett, Massachusetts.
6. Provide the name, position, and place of employment for your
spouse (if married) and the names and ages of your children (including
stepchildren and children by a previous marriage):
Husband: David Lee Turner
Telecommunications Engineer
U.S. Fish and Wildlife Service
Fairfax Drive
Arlington, VA.
Children:
Dianne Barbra Scheinberg, 30
Eric Lee Turner, 16
7. List all college and graduate degrees. Provide year and school
attended.
1974-1979 University of California, Irvine--M.S.
1965-1969 Simmons College, Boston, MA--B.A.
8. List all management-level jobs held and any non-managerial jobs
that relate to the position for which you are nominated.
04/01-present Deputy Assistant Secretary, DOT, Washington, DC
07/90-04/01 Director, U.S. General Accounting Office,
Washington, DC
08/81-07/90 Budget Examiner, OMB, Washington, DC
01/81-08/81 Policy Analyst, FEMA. Washington, DC
07/79-01/81 Presidential Management Intern, U.S. GPO,
Washington, DC
9. List any advisory, consultative, honorary or other part-time
service or positions with federal, state, or local governments, other
than those listed above, within the last 5 years: None.
10. List all positions held as an officer, director, trustee,
partner, proprietor, agent, representative, or consultant or any
corporation, company, firm, partnership, or other business, enterprise,
educational or other institution within the last five years.
General Partner, Vista Apartments, Palo Alto, CA.
11. Please list each membership you have had during the past 10
years or currently hold with any civic, social, charitable,
educational, political, professional, fraternal, benevolent or
religious organization, private club, or other membership organization.
Include dates of membership and any positions you have held with any
organization. Please note whether any such club or organization
restricts membership on the basis of sex, race, color, religion,
national origin, age or handicap.
Director, American Association for Budget & Policy Analysis
Falls Church, VA
(non-profit professional organization, 1995-2000)
Member, Parent Teachers Association at the following Arlington
Public Schools
Jamestown Elementary School (1994-2000)
Williamsburg Middle School, Arlington, VA (2003-2003)
Thomas Jefferson High School for Science & Tech, Fairfax, VA
(2003-present)
Member, Temple Rodef Shalom, Falls Church, VA, 1982-present
(None of these organizations restricts membership)
12. Have you ever been a candidate for public office? If so,
indicate whether any campaign has any outstanding debt, the amount, and
whether you are personally liable for that debt: No.
13. Itemize all political contributions to any individual, campaign
organization, political party, political action committee, or similar
entity of $500 or more for the past 10 years: None.
14. List all scholarships, fellowships, honorary degrees, honorary
society memberships, military medals and any other special recognition
for outstanding service or achievements.
2002 Transportation 9/11 Medal
2003 Presidential Rank Award of Meritorious Executive
15. Please list each book, article, column, or publication you have
authored, individually or with others, and any speeches that you have
given on topics relevant to the position for which you have been
nominated. Do not attach copies of these publications unless otherwise
instructed.
While at the General Accounting Office (currently the
Government Accountability Office), I authored or co-authored
the following GAO Reports and Testimony:
03/21/01 Intercity Passenger Rail: Assessing the Benefits of
Increased Federal Funding for Amtrak and High-Speed Passenger
Rail Systems, GAO-01-480T.
02/14/01 Highway Infrastructure: FHWA's Model for Estimating
Highway Needs Has Been Modified for State-Level Planning, GAO-
01-299.
01/31/01 Motor Vehicle Safety: NHTSA's Ability to Detect and
Recall Defective Replacement Crash Parts Is Limited, GA0-01-
225.
11/17/00 Metropolitan Washington Airports Authority:
Information on Contracting at Washington Dulles International
Airport and Ronald Reagan Washington National Airport Between
1992 and 1999, GAO-01-185R.
11/9/00 Mass Transit: Review of the South Boston Piers
Transit-way Finance Plan, GAO-01-174R.
09/29/00 Intercity Passenger Rail: Decisions on the Future of
Amtrak and Intercity Passenger Rail Are Approaching, T-RCED-00-
277.
09/15/00 Mass Transit: Project Management Oversight Benefits
and Future Funding Requirements, RCED-00-221.
08/30/00 Transit Grants: Need for Improved Predictability,
Data and Monitoring in Application Processing, RCED-00-260.
07/31/00 Hazardous Materials Training: DOT and Private Sector
Initiatives Generally Complement Each Other, RCED-00-190.
07/17/00 Commercial Motor Vehicles: Effectiveness of Actions
Being Taken to Improve Motor Carrier Safety is Unknown, RCED-
00-189.
06/29/00 Highway Funding: Problems With Highway Trust Fund
Information Can Affect State Highway Funds, RCED/AIMD-00-148.
06/05/00 Highway Infrastructure: FHWA's Model for Estimating
Highway Needs Is Generally Reasonable, Despite Limitations,
RCED-00-133.
05/31/00 Intercity Passenger Rail: Amtrak Will Continue to
Have Difficulty Controlling Its Costs and Meeting Capital
Needs, RCED-00-138.
05/15/00 Pipeline Safety: The Office of Pipeline Safety Is
Changing How It Oversees the Pipeline Industry, RCED-00-128.
04/28/00 Mass Transit: Implementation of FTA's New Starts
Evaluation Process and FY 2001 Funding Proposals, RCED-00-149.
04/25/00 Transit Grants: Department of Labor's Certification
Process,
T-RCED-00-157.
03/31/00 Mass Transit: Review of the Bay Area Rapid Transit
District's Airport Extension Finance Plan, RCED-00-95R.
03/31/00 Mass Transit: Review of the Tren Urbano Finance Plan,
RCED-00-09R.
03/15/00 Intercity Passenger Rail: Increasing Amtrak's
Accountability for Its Taxpayer Relief Act Funds, T-RCED-00-
116.
03/08/00 Mass Transit: Challenges in Evaluating, Overseeing,
and Funding Major Transit Projects, T-RCED-00-104.
03/02/00 Commercial Motor Vehicles: Significant Actions Remain
to Improve Truck Safety, T-RCED-00-102.
02/29/00 Intercity Passenger Rail: Amtrak Needs to Improve Its
Accountability for Taxpayer Relief Act Funds, RCED/AIMD-00-78.
10/15/99 Mass Transit: Mobility Improvements Is One of the
Many Factors Used to Evaluate Mass Transit Projects, RCED-00-
6R.
09/27/99 Transportation Infrastructure: Better Data Needed to
Rate the Nation's Highway Conditions, RCED-99-264.
09/24/99 Transportation Infrastructure: FHWA Should Assess and
Compare the Benefits of Projects When Awarding Discretionary
Grants, RCED-99-263.
08/19/99 Mass Transit: Status of New Starts Transit Projects
With Full Funding Grant Agreements, RCED-99-240.
07/09/99 Intercity Passenger Rail: Amtrak's Progress in
Improving Its Financial Condition Has Been Mixed, RCEC-99-181.
06/23/99 Highway Safety: Effectiveness of State .08 Blood
Alcohol Laws, RCED-99-179.
06/09/99 Transportation Infrastructure: Impacts of Utility
Relocations on Highway and Bridge Projects, RCED-99-131.
06/01/99 Transportation Infrastructure: Advantages and
Disadvantages of Wrap-Up Insurance for Large Construction
Projects, RCED-99-155.
04/26/99 Mass Transit: FTA's Progress in Developing and
Implementing a New Starts Evaluation Process, RCED-99-113.
04/16/99 Railroad Regulation: Changes in Railroad Rates and
Service Quality Since 1990, RCED-99-93.
03/17/99 Truck Safety: Effectiveness of Motor Carriers Office
Hampered by Data Problems and Slow Progress on Implementing
Safety Initiatives,
T-RCED-99-122.
02/26/99 Railroad Regulation: Current Issues Associated With
the Rate Relief Process, RCED-99-46.
02/23/99 Truck Safety: Motor Carriers Office's Activities to
Reduce Fatalities Are Likely to Have Little Short-term Effect,
T-RCED-99-89.
01/14/99 Surface Infrastructure: High-Speed Rail Projects in
the United States, RCED-99-44.
06/05/98 Intercity Passenger Rail: Prospects for Amtrak's
Financial Viability, RCED-98-211R.
05/20/98 Mass Transit: FTA's New Starts Funding Criteria,
RCED-98-189R.
05/20/98 Rail Transportation: Federal Railroad
Administration's Safety Programs, T-RCED-98178.
05/19/98 Transportation Infrastructure: Supplemental
Information on the Federal Highway Administration's Project
Selection Process for Five Discretionary Programs, RCED-98-
179R.
05/14/98 Intercity Passenger Rail: Financial Performance of
Amtrak's Routes, RCED-98-151.
04/24/98 Highway Trust Fund: Financial Condition as of
September 30, 1997, RCED-98-171R.
04/21/98 Surface Transportation: Issues Associated With
Pipeline Regulation by the Surface Transportation Board, RCED-
98-99.
03/31/98 Surface Transportation: Issues Associated With
Pipeline Regulation by the Surface Transportation Board, T-
RCED-98-127.
03/24/98 Intercity Passenger Rail: Outlook for Improving
Amtrak's Financial Health, T-RCED-98-134.
03/02/98 Intercity Passenger Rail: Issues Associated With a
Possible Amtrak Liquidation, RCED-98-60.
02/27/98 Surface Transportation: Improvements in the Bureau of
Transportation Statistics' Commodity Flow Survey, RCED-98-90R.
02/12/98 Surface Infrastructure: Costs, Financing and
Schedules for Large-Dollar Transportation Projects, RCED-98-64.
02/06/98 Highway Trust Fund: Possible Impact If It Had
Financed All Highway Expenditures, RCED-98-78R.
12/19/97 Highway Safety: NHTSA's Motorcycle Helmet Activities,
RCED-97-44R.
11/21/97 Transportation Infrastructure: Highway Pavement
Design Guide Is Outdated, RCED-97-9.
11/07/97 Transportation Infrastructure: Review of Project
Selection Process for Five FHWA Discretionary Programs, RCED-
97-14.
11/04/97 Federal Highway Programs: Status of Federal Highway
Programs in the Absence of Reauthorization, T-RCED-97-38.
11/03/97 Commercial Motor Carriers: DOT is Shifting to
Performance-Based Standards to Assess Whether Carriers Operate
Safely, RCED-97-8.
08/08/97 Commercial Passenger Vehicles: Safety Inspection of
Commercial Buses and Vans Entering the United States From
Mexico, RCED-97-194.
07/23/97 Rail Transportation: Federal Railroad
Administration's New Approach to Railroad Safety, RCED-97-142.
06/30/97 Federal-Aid Highway Program: Impact of the District
of Columbia Emergency Highway Relief Act, RCED-97-162.
06/25/97 Highway Safety: NHTSA's Activities Concerning State
Motorcycle Helmet Laws, RCED-97-185R.
06/05/97 Highway Funding: The Federal Highway Administration's
Funding Apportionment Model, RCED-97-159.
05/30/97 Surface Transportation: Regional Distribution of
Federal Highway Funds, RCED/HEHS-97-167R.
04/29/97 Surface Transportation: States Are Experimenting With
Design-Build Contracting, RCED-97-138R.
04/23/97 Intercity Passenger Rail: Amtrak's Financial Crisis
Threatens Continued Viability, T-RCED-97-147.
04/09/97 Commercial Trucking: Safety Concerns About Mexican
Trucks Remain Even as Inspection Activity Increases, RCED-97-
68.
03/13/97 Intercity Passenger Rail: The Financial Viability of
Amtrak Continues to be Threatened, T-RCED-97-94.
03/12/97 Intercity Passenger Rail: Amtrak's Financial
Viability Continues to be Threatened, T-RCED-97-80.
03/06/97 Surface Transportation: Prospects for Innovation
Through Research, Intelligent Transportation Systems, State
Infrastructure Banks, and Design-Build Contracting, T-RCED-97-
83.
02/28/97 Transportation Infrastructure: Managing the Costs of
Large-Dollar Highway Projects, RCED-97-47.
02/26/97 Transportation Infrastructure: States' Implementation
of Transportation Management Systems, T-RCED-97-79.
01/13/97 Transportation Infrastructure: States' Implementation
of Transportation Management Systems, RCED-97-32.
12/04/96 Commuter Rail Service in Wisconsin and Illinois,
RCED-99-29R.
10/31/96 State Infrastructure Banks: A Mechanism to Expand
Federal Transportation Financing, RCED-97-9.
09/17/96 Urban Transportation: Metropolitan Planning
Organizations' Efforts to Meet Federal Planning Requirements,
RCED-96-200.
09/06/96 Surface Transportation: Research Funding, Federal
Role, and Emerging Issues, RCED-96-233.
08/30/96 BART Airport Extension Update, RCED-96-246R.
07/26/96 Transportation Enhancements: Status of the $2.4
Billion Authorized for Non-motorized Transportation, RCED-96-
156.
07/24/96 Amtrak's Strategic Business Plan: Progress to Date,
RCED-964-187.
06/28/96 DC Emergency Highway Relief Act, RCED-96-196-187.
06/27/96 Northeast Rail Corridor: Information on Users,
Funding Sources, and Expenditures, RCED-96-144.
05/31/96 Mass Transit: Actions Needed for the BART Airport
Extension, RCED-96-176.
04/01/96 Railroad Safety: DOT Faces Challenges in Improving
Grade Crossing Safety, Track Inspection Standards, and
Passenger Car Safety, T-RCED-96-114.
04/01/96 Railroad Safety: DOT Faces Challenges in Improving
Grade Crossing Safety, Track Inspection Standards, and
Passenger Car Safety T-RCED-96-115.
09/07/95 Niagara Falls Bridge Commission: Audit of Capital
Development Efforts and Selected Financial Practices, RCED-95-
92.
08/02/95 Railroad Safety: Status of Efforts to Improve
Railroad Crossing Safety, RCED-95-191.
Testimony before the U.S. Congress on behalf of Department of
Transportation:
05/20/03 Surface Transportation Board's Budget before the
House Transportation and Infrastructure Rail Subcommittee.
09/25/03 Innovative Financing of Transportation Infrastructure
Projects before the Joint Hearing of the Senate Committees on
Environment and Public Works and Finance.
Speeches
10/27/02 Present and Future of Core Federal Funding at the 3rd
National Transportation Finance Conference of the
Transportation Research Board in Chicago, Illinois.
16. Please identify each instance in which you have testified
orally or in writing before Congress in a non-governmental capacity and
specify the subject matter of each testimony: None
b. potential conflicts of interest
1. Describe all financial arrangements, deferred compensation
agreement, and other continuing dealings with business associates,
clients, or customers: None.
2. Do you have any commitments or agreements, formal or informal,
to maintain employment, affiliation or practice with any business,
association or other organization during your appointment? No.
3. Indicate any investments, obligations, liabilities, or other
relationships which could involve potential conflicts of interest in
the position to which you have been nominated.
General Partner-Vista Apartments, Palo Alto, CA.
Please refer to the opinion letter of the DOT Office of General
Counsel.
4. Describe any business relationship, dealing, or financial
transaction which you have had during the last 5 years, whether for
yourself, on behalf of a client, or acting as an agent, that could in
any way constitute or result in a possible conflict of interest in the
position to which you have been nominated: None.
5. Describe any activity during the past 5 years in which you have
been engaged for the purpose of directly or indirectly influencing the
passage, defeat, or modification of any legislation or affecting the
administration and execution of law or public policy: None.
6. Explain how you will resolve any potential conflict of interest,
including any that may be disclosed by your respons to the above items.
Please refer to the opinion letter of the DOT Office of General
Counsel.
c. legal matters
1. Have you ever been disciplined or cited for a breach of ethics
by, or been the subject of a complaint to any court, administrative
agency, professional association, disciplinary committee, or other
professional group? No.
2. Have you ever been investigated, arrested, charged, or held by
any federal, state, or other law enforcement authority of any federal,
state, county, or municipal entity, other than for a minor traffic
offense? No.
3. Have you or any business of which you are or were an officer
ever been involved as a party in an administrative agency proceeding or
civil litigation? No.
4. Have you ever been convicted (including pleas of guilty or nolo
contendere) of any criminal violation other than a minor traffic
offense? No.
5. Please advise the Committee of any additional information,
favorable or unfavorable, which you feel should be disclosed in
connection with your nomination: None.
6. Have you ever been accused, formally or informally, of sexual
harassment or discrimination on the basis of sex, race, religion or any
other basis? No.
d. relationship with committee
1. Will you ensure that your department/agency complies with
deadlines for information set by congressional committees? Yes.
2. Will you ensure that your department/agency does whatever it can
to protect congressional witnesses and whistle blowers from reprisal
for their testimony and disclosures? Yes.
3. Will you cooperate in providing the Committee with requested
witnesses, including technical experts and career employees, with
firsthand knowledge of matters of interest to the Committee? Yes.
4. Are you willing to appear and testify before any duly
constituted committee of the Congress on such occasions as you may be
reasonably requested to do so? Yes.
The Chairman. Thank you very much.
You both come very highly recommended and I will say that
Secretary Mineta called me personally over the weekend to see
if we could schedule this hearing so that he could have the
assistance of the two of you, and urged that we proceed as
rapidly as possible because of the problems he faces without
the positions that you will hold being filled.
So I want you to know that I read through the background
statement that each one of you provided the Committee last
night. I commend you on your careers to date and believe that
you really have the background that is necessary, each of you,
for the positions that the President has nominated you to fill.
I really, in view of what I read last night, do not have
any questions concerning that. Senator Inouye, do you have any
questions of the ladies?
Senator Inouye. I have just one question, Mr. Chairman. A
few days ago we conducted a hearing in which we discussed
financing for the security operations, TSA and other security
operations, and we learned that over 90 percent of the funds
available go for one purpose, airlines. What are your concerns
about the other modes of transportation?
The Chairman. Ms. Cino?
Ms. Cino. Senator, I know, with regards to security, that
is an issue that we work very closely with Homeland Security on
and they take the lead in developing our strategy and
procedures for security. I know that we are very, very
fortunate to have the new Deputy Secretary of Homeland
Security, Michael Jackson, who served with us at the Department
of Transportation the first 2 years of the Administration. I
look forward to working with him to do everything we possibly
can with regards to ensuring safety and, if confirmed, I look
forward to working with this Committee to ensure that our
fellow Americans on transportation modes are secure in all that
they do.
Senator Inouye. One more. Several suggestions have been
made that if we go below $1.3 billion for Amtrak it would put
them on the route to bankruptcy. Is there any credence to that?
Ms. Cino. I think, Senator, in my conversations with the
Secretary, Secretary Mineta is committed to doing all he can
for Amtrak, so much so that he has traveled around the country,
he has met with elected officials, he has met with rail
workers, and even has had conversations with our daily
commuters, those folks that use the rail system.
With regards to that, I know that the Secretary and the
Administration are committed to saving Amtrak with the
fundamental changes and the reforms that will be necessary to
see this entity go on. If confirmed, I look forward to working
with this Committee to make sure that we have a bill that we
can enact and the President will sign.
In addition, I think we have already made some good
progress with regards to having proposals. We have the
Administration proposal, obviously, but in addition Amtrak
presented last week their proposal, and I believe that last
week we were also encouraged by Senator Lott in expressing his
desire to have a bipartisan bill in the next couple of weeks.
Again, we look forward to making sure, both the
Administration and Secretary Mineta, that we are able to save
Amtrak with the fundamental changes and the reforms that we
think are necessary.
Senator Inouye. Thank you very much, Ms. Cino.
The Chairman. Senator McCain.
Senator McCain. Thank you, Mr. Chairman. I again want to
congratulate both the nominees. We are pleased at your
willingness to serve in these very, very difficult times.
As far as Amtrak is concerned, Ms. Cino and Ms. Scheinberg,
we are going to continue to pump money in and it is going to
continue to fail and things are going to happen as this latest
failure of the Acela trains because, as we all know, rushed
into service, billions of dollars, taxpayers' dollars, will be
spent.
The Administration proposal, Ms. Cino, is good. The
President's proposal is very good for Amtrak. Will it happen?
Probably not, probably not. But I applaud the President's
courage in saying something has got to be done.
Very few benefits of old age that I have found, but one of
them is to remember when heads, presidents of Amtrak, came
before this Committee and said: We are on a glide path to
financial solvency; do not worry because we have got this new
train; and let us continue to subsidize these long distance
rail services which lose hundreds of dollars per passenger. And
Members of this Committee continue to strongly support money-
losing propositions when less than 1 percent of the passengers
in America ride on railroads.
Billions and billions of the taxpayers' money will continue
to be spent frivolously and outrageously. Yes, I believe that
we need a Northeastern Corridor of rail and I have strongly
supported it. But to support the so-called Sunset Limited that
I believe is a $105 or $205 per passenger subsidy--I still
remember the great story in the New York Times Magazine about
the guy that rode it one time, and finally ended up taking a
bus for the last quarter of the trip.
So we will continue to pump money into Amtrak. We will
continue to lose, to subsidize money-losing routes, and the
taxpayer is the one that is going to suffer. This latest Acela
thing is one in a long series of Amtrak difficulties that have
cost the taxpayers billions of dollars, and again after being
assured time after time by then-heads of Amtrak that everybody
is fine and that everything is going to be just fine.
So I applaud the President's courage in coming forward with
an initiative that at least will educate the American people.
Will it pass the Congress? No. But I certainly do applaud the
President's courage in saying we have got to do something about
this dramatically money-losing enterprise that was designed
years ago to be turned over to the private sector after just a
few years, which probably will not be in my lifetime.
One other area I wanted to discuss with you is, I was in
the Phoenix airport yesterday preparing to fly back to
Washington. There was a security brief, and we all paused for a
period of time. The thing that is most disappointing to me
about TSA is that to my knowledge since we organized TSA and
the security procedures at airports I have not seen one single
technological advance as far as passengers are concerned. There
should be a better way of moving people through airports, and
that is obviously through technology.
Hardly a day goes by that somebody--that I do not get a
letter from some small business or medium size business or
large corporation that says: Look, we have got some technology
here that we think will enhance security and expedite people
moving in and out of airports. You have got to start looking at
this technology so that we can remove the almost permanent
gridlock that we see in major airports across America today.
I admire and respect TSA employees, but it is not manpower
that is going to do it; it is technology.
Finally, Ms. Scheinberg, I want to especially thank you for
the great work you did at GAO. You were honest and
straightforward and I hope none of those candid and honest
opinions you gave will impede your nomination for this
position.
I want to congratulate the family members and friends of
both of the nominees who are here today. I know it is a very
proud time for you.
Would you want to respond to that diatribe, Ms. Cino or Ms.
Scheinberg?
Ms. Cino. Senator, I have not been at the Department very
long, but I think I will reserve the right to take your
comments and bring them back to the Department.
Ms. Scheinberg. Senator, I agree with you that we need to
work on technology and we at the Department of Transportation,
including Secretary Mineta who very strongly believes the same,
will be working with the Department of Homeland Security on
these issues.
Senator McCain. Well, I thank you.
Mr. Chairman, thank you. I again want to say that I believe
that technology is out there and there seems to be, at least in
the opinion of those who are trying to at least give serious
consideration for these technologies, kind of a bureaucratic
gridlock, that if we do nothing then we have not made a
mistake, and therefore the status quo is fine.
The status quo at airports is not fine, as you know,
particularly in the major airports around America. I in a way
am a little bit surprised at the incredible patience and good
humor that most Americans show as they are required to take off
their shoes, their bracelet, their jacket. I think it is a
testimony to the willingness of the American people, but I
think it is harmful to our airlines and I think it is harmful
to our ability to transport people from one place to another
throughout America.
I congratulate both of you. We look forward to working with
you and thank you for your willingness to serve.
Thank you, Mr. Chairman.
Ms. Cino. Thank you, Senator.
Ms. Scheinberg. Thank you, Senator.
The Chairman. Before I yield to Senator Lautenberg, let me
say that this afternoon we have a hearing scheduled at 2 p.m.
At that time, if we have a quorum I will ask consent to report
these two nominations, with the hopes that we might be able to
get them confirmed before the recess that starts on Friday.
I have also just been called to the floor, so I hope that I
can leave this in your gentle hands, Senator Inouye. I think
Senator McCain is leaving. So am I. I yield to Senator
Lautenberg.
Senator Lautenberg. All of us are veterans, all four of us,
so as a consequence we know how to deal with one another in
guarded fashion.
The Chairman. Very guarded.
Senator Lautenberg. Thank you very much, Mr. Chairman.
I am sorry that Senator McCain had to go because I was
pleased to hear him make a commitment that we are going to keep
pumping money into Amtrak. That was very nice of him to make
that kind of a suggestion.
The fact of the matter is that in my view Amtrak is
essential and I am sure that each of you is aware of the fact
that the entire aviation system shut down on 9/11 and the only
thing that was operating with any degree of reliability was
Amtrak. So how in this day and age of security consciousness
can we decide to cut out this one important mode of
transportation?
Twenty-five million people rode Amtrak last year, Senator
Inouye, and we continue to hope that we are going to make
Amtrak finally what it is supposed to be. That includes
government subsidy. There is not a country in the world that
has a reasonably decent operation on passenger rail that does
not subsidize it in some way. Even in the UK, where they turned
much of it over to private hands, now it gets more subsidy than
it did before, except that it passes through one stage where
people can take off a few pennies before, a few pence, whatever
they call it there, before it goes towards moving passengers.
I wanted to point out something else. We have a service
that we call Essential Air Service. It is designed to keep
communities from being so isolated that transportation in and
out is very difficult. It costs as much as $200 per passenger
for every passenger that is included on an Essential Air
Service route. And contrary to the impressions that my
distinguished colleague had about promises that were made by
chiefs of Amtrak that the railroad would soon be on a glide
path to fiscal sustainability, I do not remember, and I have
been here a long time--I know I just look like a freshman, but
I have been here a long time. The fact of the matter is that we
had statements from heads of the railroad who said we cannot
ever do the capital financing that we need and meet our
operating requirements. It just cannot be done.
So when we look at the costs, Mr. Co-Chairman, Acting
Chairman--and I wish you permanent chairmanship--the fact of
the matter is that rail service cannot be done without
recognizing that a subsidy is necessary. I hope that the
President can realize this fact.
Do either of you share a different view than I do about the
essentiality of Amtrak? How about Buffalo, Ms. Cino? It is a
very important city on our northern border--and I know the
places, not quite as well perhaps as Senator Clinton, but
Binghampton, Rochester. What would reliable, relatively high
speed service mean to a city like Buffalo or other cities that
are isolated like that?
Ms. Cino. Thank you very much, Senator. With regards to
Amtrak and the rail service, but in particular with regards to
Amtrak, I know that smarter people than I have been talking
about this issue for the last 35 years. But I must say in the
last 12 days, working days that I have actually been at the
Department of Transportation, I have probably spent 10 full
days working on Amtrak and rail issues. So while I am not quite
up to speed, I feel that I have had a pretty good lesson over
the last 12 days.
With regards to Amtrak, I believe again that the Secretary
is committed, the Administration is committed, to saving
Amtrak, but looking for some of the reforms that have been
talked about both in the Amtrak bill and certainly I think
perhaps even by Senator Lott with regards to making sure that
we preserve the rail system, but again incorporate the reforms
to help us become more solvent and sound.
Senator Lautenberg. Ms. Scheinberg, do you with your budget
experience have any views on what we do about Amtrak?
Ms. Scheinberg. Yes, Senator Lautenberg. I totally agree
with you, and the Secretary and the President agree with you,
that we cannot have an intercity passenger rail system in this
country without federal support. It makes sense that the
federal support be for capital investment, as it is with
highways and airports. The Federal Government supports capital
investment, and the state and local governments support the
operations of the mode of transportation. That is a cornerstone
of the President's reform package.
I know the Secretary has said that with reform will come
money, will come financing. But at the moment the system that
we have is broken. For over 30 years we have been providing
money to Amtrak and it is actually having more and more
problems. What we are trying to do with the President's
proposal is to reform the system so that we can spend our
federal dollars wisely and have a better intercity passenger
rail system.
Senator Lautenberg. Well, I can see that Secretary Mineta
has had a chance to impart his wisdom and knowledge to each of
you. The words are not really comforting, though they are
nicely said by intelligent people. When they talk about reform
around here now, it usually refers to turning a government
function over to private hands. Well, I remind everybody that
Amtrak was in private hands until the government was forced to
take it over, with bankruptcies being the spur to move these
things.
So if we look at what has happened, we took the airport
security screeners away from private hands because the airlines
did such a poor job, and now we are talking about going to
perhaps privatize the screeners once again.
I think, Mr. Chairman, that's part of what causes enormous
delay is the search for the tiniest scissor or tweezer or
things of that nature. I believe that this is a conspiracy by
the scissor manufacturers to make sure that they confiscate
your scissors so that you can go out and buy new ones.
But it is an outrageous thing, when the cockpit doors are
already sealed. I think we ought to be looking at requiring
installation of a cabin camera viewed in the cockpit, and if
someone sees somebody holding a cabin attendant with something
at their throat to be suspicious and maybe do something about
it. Instead, we continue to proceed with this incredible search
and this humiliation that goes with taking off your shoes,
especially if you have got holes in your socks. It is not nice,
not for Senators anyway. If the administration would fund less-
intrusive screening technology, travellers wouldn't be so
inconvenienced.
But we have to look at these things and see what they
really mean. If it makes travellers safer, we have got to do
it. But a constant reminder that terrorists are looking over
our shoulder is not particularly good for the morale of the
country. Many people are frustrated, disgusted, and annoyed. I
had talked with Secretary Chertoff yesterday and they are
looking at the possibility of avoiding this senseless search
for a little pair of scissors that do not mean anything when
you still have a plastic knife. Some airlines, by the way, give
you metal knives and some use only plastic knives. Now, I do
not think that one airline cares more about its passengers than
the other, so I'd like to know the government's role in
providing guidance on this topic.
In any event, I am pleased to see the two of you willing to
take on the assignments before you, that the Chairman and other
Members of the Committee are anxious to have your confirmation
in place. I will join them.
I have many questions and will submit them for the record.
I would ask in closing if we could get statistics on what
happened while the mandatory universal motorcycle helmet law
was in place. I was the author of that, and I know that we in
our hospitals in New Jersey had a reduction in neck, head and
neck trauma as a result. The federal requirement was repealed a
couple of years later, at the urging of people who wanted to be
freer, one of whom had a terrific motorcycle accident, Senator
Ben Nighthorse Campbell, at a later time.
So if you could supply that for me it would be helpful, and
I thank you both for again your willingness to serve.
Mr. Chairman, I thank you very much.
Senator Inouye. [presiding] Thank you very much, Senator. I
also join my Chairman in congratulating the ladies for your
spirit of public service. We thank you very much.
Like Chairman Stevens, I received a call from Secretary
Mineta. He must think very highly of you, ladies. He called me
up just before I went to bed. He was really at work. So we will
do our best to expedite your confirmation and do not be
surprised if you are in your positions tomorrow.
Ms. Cino. Thank you very much.
Senator Inouye. Thank you very much.
[Whereupon, at 10:48 a.m., the Committee was adjourned.]
A P P E N D I X
Response to Written Questions Submitted by Hon. Daniel K. Inouye to
Maria Cino
Amtrak
Question. As Deputy Secretary, will you take on the role as the
representative for the Secretary on Amtrak's Board as some of your
predecessors have? What do you believe should be the qualifications of
Amtrak Board members? Do you believe the President and CEO of Amtrak
should be a voting member of the Board?
Answer. The decision by the Secretary to serve on the Amtrak Board
himself or to assign a representative is his alone, but I would be
pleased to take on this role if he requested it.
The Amtrak Reform and Accountability Act of 1997 directed that
Board members ``have technical qualifications, professional standing,
and demonstrated expertise in the fields of transportation or corporate
or financial management.'' President Bush and Secretary Mineta have
taken this direction seriously and have nominated individuals whose
backgrounds meet these criteria. The Act also named the Amtrak
President and CEO an ex officio member of the Board. The President's
reform proposal, which I support, does not seek to change either of
these Congressional mandates.
Airport Improvement Program/Facilities and Equipment
Question. The Administration has proposed dramatic cuts to the
Airport Improvement Program (AIP) and the Facilities and Equipment
(F&E) program in FY 2006. Over the past two years these programs have
been cut by more than $1 billion below their authorized levels.
Are you concerned that this year's planned $500 million cut in AIP
will create problematic formula adjustments that will essentially shut
many of the nation's smallest airports out of the funding equation?
What do you propose as the most effective solution for the Federal
Government to meet the needs of all of our nation's airports?
Does the Administration plan to continue cutting the F&E account in
future years? What will the effect of the current proposal be on
efforts to modernize the national airspace system?
Answer. I understand that the President's FY 2006 budget
specifically proposes legislative language to preserve the entitlement
grants for the nation's smallest airports. Further, the President's
budget also suggests a minimum amount of money for AIP discretionary
funds to allow FAA to target projects of highest priority. FAA believes
this will further enable the agency to support the needs of the smaller
airports in the system.
I have been reassured by FAA that the slight reduction in the FY
2006 Facilities and Equipment budget will not affect the FAA's
modernization plans or delay projects that directly contribute to FAA's
strategic safety and capacity goals. Obviously, I cannot predict future
levels of F&E funding, but if confirmed, I will work closely with
Secretary Mineta, the Committee on Commerce, Science and Transportation
and the FAA to ensure that adequate funds are budgeted to allow the FAA
to move forward with modernization projects that are critical to the
national airspace system.
Automated Flight Service Stations
Question. The Nation's Automated Flight Service Stations (AFSS)
were recently contracted out through the A-76 process. There have been
some indications that anticipated savings over the first 5 years of the
contract are far smaller than indicated.
Can you provide a detailed update of the status of the AFSS
contract? Do you support using the A-76 process on other components of
the nation's air traffic control system?
Answer. On February 1, 2005, the FAA awarded a contract to Lockheed
Martin for the services provided to general aviation pilots through a
network of 58 Automated Flight Service Stations located in the
continental United States, Puerto Rico and Hawaii. Three new Hubs will
be built in Leesburg, Virginia; Ft. Worth, Texas; and Prescott,
Arizona. Seventeen other existing facilities will be refurbished and
continue operation. Thirty-eight facilities will be closed. The FAA has
told me that the estimated savings from this contract substantially
exceed the required A-76 $1 billion level and that the process was
supported by general aviation pilots that use these services.
I understand that Secretary Mineta designated air traffic control a
``core function'' of the FAA and therefore not subject to competitive
sourcing. I am not aware that this issue is being revisited at the
Department.
Maritime--Title XI
Question. The Title XI ship financing program has recently
undergone significant reforms to meet Congressionally mandated
recommendations. Yet the financial safeguards the IG has imposed above
and beyond GAO and Congressional requirements, has lead to excessive
oversight, redundant reviews, and unpredictable bureaucratic red tape
by the newly formed Credit Council.
How do you intend to revitalize Title XI to focus the expertise of
the Maritime Administration and the Department's limited resources to
make this program functional once again?
Answer. It is my understanding that the Credit Council was created
to provide overarching credit policy direction for all of the
Department's credit programs. As with the implementation of any new
process, the Secretary views the new credit process as a work in
progress, which will be modified as needed to incorporate future
refinements over time.
With the obligation of Title XI subsidy for the Hawaii Superferry
project, I am told that there are effectively no subsidy funds
available for new Title XI loan guarantees. Consistent with the
Administration's intent to eliminate corporate subsidies, the
President's FY 2006 Budget did not request subsidy funds for new Title
XI loan guarantees. Thus, the Department's main focus is ensuring that
the Maritime Administration has the tools it needs to manage the
outstanding Title XI portfolio effectively.
Maritime--Port Infrastructure Development/SEA-21 Initiative
Question. Secretary Mineta has repeatedly and openly discussed the
Department's proposed Sea Transportation Efficiency Act of the 21st
Century Act (SEA-21) in numerous speeches throughout the country. I
know the Marine Transportation System National Advisory Council
(MTSNAC) presented their recommendations to Secretary Mineta in
November of 2003 and the Secretary has since proposed his
recommendation to the White House.
With our country woefully lacking in a comprehensive federal policy
for port infrastructure development, given the expected doubling of
growth over the next fifteen years, how does the department plan to
address these significant shortcomings in our Nation's transportation
systems?
Answer. Secretary Mineta believes that a comprehensive marine
transportation system improvement initiative would enhance the nation's
overall transportation system, and he has asked his staff to undertake
a comprehensive review of the marine transportation system and develop
a package of recommendations. The Secretary has also successfully
advocated for the creation of an Interagency Committee on the Marine
Transportation System--a cabinet-level committee that he will chair.
The Secretary's ultimate goal in developing a ``SEA-21'' proposal is to
deliver a marine transportation system that enhances the efficiency,
productivity, and capacity of our nation's intermodal transportation
system.
If confirmed, I look forward to working closely with the Secretary
and Members of the Committee on Commerce, Science and Transportation to
ensure that our maritime system is a vibrant piece of our national
transportation network.
Maritime--Review of Title XI Applications
Question. The National Defense Authorization Act for Fiscal Year
2004 (Pub. L. 108-36) has a statutory provision for independent reviews
of Title XI applications. The Committee report accompanying the
legislation makes clear that Congress did not intend for this authority
to be used in ``routine cases or where MARAD already has sufficient
expertise to assess full the risk or approving a loan guarantee
application.''
In view of clear Congressional intent, why is MARAD required to
obtain independent reviews from applications that appear to be routine
or clearly within MARAD's expertise?
Answer. I have been assured that MARAD is not required to obtain
independent reviews of Title XI applications that would be counter to
the guidance provided in the Conference Report accompanying the 2004
DoD Authorization Act. To date, there has been only one Title XI
application--Hawaii Superferry--for which an external advisor has been
retained. Although I was not here at the time, I have been told that
MARAD proposed--and the Department agreed--that an external advisor
should be retained in that case, because the project involved an
applicant with less than 5 years operating experience and service in a
new market.
Maritime--Credit Council Review of Title XI Applications
Question. It is my understanding that Title XI applications go
through three different reviews before they are presented to the Credit
Council. This seems to be very redundant and an inefficient use of
government resources.
In this era of serious personnel constraints, how is this
duplication of efforts justified?
Answer. It is my understanding that the reviews that occur prior to
an application being presented to the DOT Credit Council are concurrent
and are done with existing Department personnel. In light of past
concerns expressed by Congress and the findings and recommendations of
the DOT Inspector General and the Government Accountability Office, the
Department believes that these different reviews are an important part
of the Department's due diligence in the review of Title XI
applications. If confirmed, I will look for ways to refine the
Department's evaluation process and will certainly be open to
suggestions from the Congress for improvements in the process.
______
Response to Written Questions Submitted by Hon. Daniel K. Inouye to
Phyllis F. Scheinberg
Amtrak--Funding Stream
Question. Most of our federal capital grant programs for
transportation feature some sort of dedicated, multi-year, guaranteed
funding stream. Experts widely agree that the stability provided by
such dedicated funding is essential for the development of a successful
large-scale transportation program.
As Assistant Secretary for Budget and Chief Financial Officer for
the Department, will you support the creation of a dedicated, multi-
year, guaranteed funding stream for intercity passenger rail and
Amtrak? If so, how should this be structured?
Answer. The President's legislative proposal to restructure
intercity passenger rail transportation in the U.S. would establish a
permanent federal grant program for capital projects to public entities
that decide on infrastructure investments. This proposed authorization
is structured to parallel the existing capital assistance program for
public transit new starts projects.
The transit grant system is based on a full funding grant agreement
(FFGA) between the Federal Government and the local public project
sponsor. The FFGA identifies the total cost of the project and the
federal and local funding shares. The funding for transit capital
projects comes from the transit portion of the Highway Trust Fund. The
funding source for the proposed intercity passenger rail infrastructure
grants has not been identified.
If confirmed, I look forward to working with you to use the transit
model as a possible example in reforming the process and funding of
federal grants for intercity passenger rail infrastructure projects.
FAA Cost Accounting
Question. What is the status of the Federal Aviation
Administration's (FAA) cost accounting system methodology? What do you
hope to gain from it when it is developed?
Answer. As of April 2005, FAA has provided cost accounting
information for all of its FY 2004 data and for the first quarter of FY
2005 for two of its four lines of business. FAA plans to have Cost
Accounting in place throughout the agency by June 2006. It should be
noted that FAA has implemented a labor distribution reporting process
where over 43,000 employees now report their time by project and task.
To help stress the importance of finance, FAA has revamped its
executive and management training to include a focus on improved
financial accountability. FAA is committed to completing the
implementation of the Cost Accounting System and if confirmed, it would
be my expectation that FAA would use this valuable financial
information in making business decisions.
One example of where that is already being done is in the Air
Traffic Organization, which is establishing unit cost metrics to help
drive efficiencies within the organization. The recently published ATO
Annual Performance Report to Congress noted that FY 2004 costs per
flight fell an estimated $17. The support for this number came directly
from the FAA Cost Accounting System.