WCI Reacts To President's 2017 Budget Request

Waterways Council, Inc. (WCI) reacted to the FY 2017 budget request made by President Obama earlier today, as detailed below.

The budget

•proposes $4.620 billion for the U.S. Army Corps of Engineers’ Civil Works program, a 29.8% cut from the $5.989 billion FY’16 appropriation for the program;

•$1.090 billion for the Construction account, a 41.5% reduction from FY16’s $1.862 billion;

• $2.705 billion for the Operations and Maintenance (O&M) account, $5 million less than the Administration requested last year for the account, but a $432 million cut (13.8%) from what Congress appropriated for the current fiscal year;

•$85 million for General Investigations, but provides no funds for Preliminary Engineering and Design (PED) for the Navigation Ecosystem Sustainability Program (NESP), authorized in WRDA 2007;

•a $1.289 billion inland waterways user fee.  Similar proposals in the past have been soundly rejected by Congress;

•$986 million be appropriated from the Harbor Maintenance Trust Fund (HMTF), down from $1.25 billion in FY 2016.

Also, today, the Corps released its work plan for FY 2016 funding allocations made available by Congress as follows: 

•Lock and Dam Project will receive $268 million (a $55.3 million increase above the $212.7 million it got in the final FY15 work plan and $88 million more than the Administration requested;

•Mon 2, 3, 4 will get $58.9 million (a $3 million increase);

•Lock will receive $45.4 million ($30.7 million higher than the FY15 work plan’s $14.7 million and $45.4 million more than the Administration requested in FY'16;

•Lock will get $29.9 million ($26.9 million higher than the FY15 work plan’s $3 million) and $29 million more than was included in the Administration budget request;

•Lock and Dam (Major Rehab) received $1.4 million to award contract modifications to finish the project; 

•is no funding for NESP. Lockport Lock and Dam (Major Rehab) was awarded $1.4 million for contract modifications to close out the project. 

•is no funding for NESP.

“The Administration’s FY ’17 budget request for the U.S. Army Corps of Engineers’ Civil Works mission proposes a 30% cut and is the most disappointing budget to date.  Our nation’s waterways, and lock and dam modernization, are critical to the transportation supply chain and to world competition for shippers, yet we continue to see slashed funding,” said Michael J. Toohey, President/CEO, WCI.  “With Congressional FY '16 appropriations funding finally at efficient levels, we simply cannot go backwards when the freight outlook ahead is so robust.  Congress has consistently demonstrated its understanding of the importance of infrastructure investment.  WCI will work vigorously to reverse the Administration’s recommendations in the halls of Congress,” he continued.