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DOT LogoMemorandum
U.S. Department of Transportation
Federal Highway Administration

ACTION: Allocation of FYs 1998-99 Funds Ferry Boat Discretionary (FBD) Program
(Reply Due: November 30, 1998)
November 3, 1998
Chief, Federal-Aid and Design Division


Division Administrators


Section 1207 of the Transportation Equity Act for the 21st Century provides discretionary funding for the construction of ferry boats and ferry terminal facilities. For FYs 1998-99, approximately $39 million is available from the Highway Trust Fund for the competitive portion of the FBD program. The FBD funds earmarked by law to Alaska, Washington, and New Jersey will be allocated by separate memorandum.

In developing a list of projects to receive funding, we reviewed 86 candidate projects submitted by 25 States and Puerto Rico. These projects had a total estimated cost of $153 million. Since only $39 million is available for allocation, we could not fund all the projects proposed by the States, and the allocation for some of the approved projects is necessarily less than the amount requested by the States.

We are pleased to advise you that FBD funds, appropriation code Q95, are allocated to you for the projects shown on the attached table. The Federal share is 80 percent. The allocation of FBD funds are available only for the projects selected for funding. Any transfers from one project to another are not allowed. Should additional funds be needed to accomplish the scope of work proposed, such funds should be secured from other sources.

For FY 1999, obligation of the FBD funds is controlled by a special requirement included in the FY 1999 Omnibus Appropriations Act (P.L. 105-277). The Act limits obligation of FBD funds during FY 1999 to $38 million. However, the FY 1999 allocations for FBD funds, which combine FY 1998 and FY 1999 authorizations, will amount to approximately $59 million. This includes the $39 million being allocated to States under the competitive portion of the FBD program plus $20 million in FBD funds earmarked to three States by statute. Consequently, there is not enough obligation authority available to the FBD program to cover all of the allocated funds.

We will be distributing the obligation authority on an "as needed" basis. To manage this, please advise my office by November 30, 1998, of the amount of the FBD allocation provided by this memorandum that the State can obligate by December 31, 1998. Based on the responses we receive, we will decide how to distribute the available obligation authority.

Please note that a State cannot use its regular obligation authority on the FBD funds distributed by this memorandum. These FBD funds may only be advanced with obligation authority specifically distributed by my office for these funds. For that portion of these FBD funds that are not obligated during FY 1999, we will withdraw the funds later in FY 1999 and will return them to the State in FY 2000.

By copy of this memorandum, we request the Budget Division of the Office of Budget and Finance to process these allocations. You may call Mr. Jack Wasley of the Federal-Aid and Design Division at 202-366-4658 if you have questions.

Signed by
Dwight A. Horne

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