With a 1/3 of the money out the door already, the stimulus was able to work, in part, because the money was spent relatively quickly. But spending money quickly often relies on formulas and methods that are outdated, or — as evidenced in a report last month by the Transportation Equity Network (TEN) and Good Jobs First —  inequitable. Minority-owned businesses have received only 10.2 percent of stimulus funds toward federal contracts, while women-owned businesses received 5.9 percent.

There were similar shortcomings at the state level. The head of the California Hispanic Chamber of Commerce has said he was “not aware of a single one of our members who’s received a contract related to the stimulus package.”  In Colorado, the Denver Post reported that the state Department of Transportation failed to meet its minority hiring target of 7.5 percent.

These numbers have been noticed in Washington.  The Congressional Black Caucus is pushing Democratic leaders to make sure the in-progress jobs bill provides real relief to many of their majority-minority districts, and President Obama has pressed governors to step up their efforts as well. If and when the Senate takes up job-creation legislation similar to the House version passed in December, it will provide an opening to learn from the stimulus and ensure everyone takes part in America’s economic recovery.

The transportation spending priorities in the jobs bill, set for a vote in the House of Representatives today, will provide much needed short-term funding for our roads, bridges and transit systems that will put Americans to work across the country. These “stopgap” provisions will save and create jobs, and give states and localities the opportunity to start bringing their crumbling transportation systems back into a state of good repair.

Riders of public transportation systems all over the U.S. will benefit in particular from the provision allowing large transit systems to use 10 percent of the $6.15 billion in formula funding for operations, a critical provision during this crisis in transit funding. This emergency operating assistance will save jobs and prevent debilitating fare increases and services cuts that make it more difficult for working people to get where they need to go.

But to get the biggest bang for the buck in job creation and increase accountability for transportation funding, the Senate can make meaningful changes that will focus investments in a smarter more responsible way towards projects that create the most jobs, fastest and build for the long-term health of our economy.

In adjusting the jobs bill the Senate should:

• Include language to ensure the $27.5 billion allocated to the traditional highway program goes towards projects that restore our transportation networks to a state of good repair. The American Society of Civil Engineers has estimated current road repair needs at $94 billion per year. These “fix-it-first” projects are ready to go faster than other projects and create 16 percent more jobs than new highway construction. Unfortunately, the current draft fails to include language ensuring highway money is prioritized to fix crumbling roads and bridges.
• Include funding for Intelligent Transportation Systems (ITS) and the Department of Transportation’s High Speed Rail and TIGER programs to create good green jobs modernizing our transportation system and provide significant long-term benefits for the nation. The merit-based investments in the TIGER program increase accountability of spending and ensure we are funding projects that would create the most jobs and deliver the biggest benefits. The $1.5 billion TIGER grants available in the ARRA attracted $57 billion in applications, leaving more than $55 billion unfunded.
• Include workforce development provisions to target new transportation construction jobs to the people who need them most. This can be done by dedicating one percent of all funding for apprenticeship and construction careers programs in the transportation sector and by targeting 30 percent of all construction work hours to local, lower-income workers.

This jobs bill will provide needed funding for transportation projects to stem the tide of continuing job losses. But short-term measures, based on an outmoded, 1950s-era transportation program, simply are not sufficient to meet the economic challenges of the 21st century.

We applaud the House leadership for addressing the short-term needs for job creation while keeping a focus on taking up the successor legislation to the expired SAFETEA-LU law in earnest in this Congress. We look forward to supporting Congress and the Administration in bring about a bold new vision for our transportation program that supports long-term economic growth and creates a safer, cleaner, smarter system for everyone.

Later today, the House will vote on a separate $174 billion jobs bill. Tucked inside that bill is a longer extension of the 2005 transportation bill that would extend SAFETEA-LU all the way to the end of September 2010.

With the health care logjam preventing the Senate from considering any other meaningful or controversial legislation, House leaders know the chances of the Senate acting on their jobs bill before January are virtually nil. But the Senate is expected to approve the defense spending bill that includes the two-month extension before Christmas. We assume House members hope the Senate will come back from recess and pass the jobs bill with the longer extension early in 2010.

Along with the nine-month extension of SAFETEA-LU, the jobs bill also provides $36.7 billion to states for transportation investments. Elana Schor had an early breakdown on Streetsblog Capitol Hill, but read on below the jump for some details about the money included for transportation.

For the most part, the balance of funding is the same as the economic recovery act (ARRA) from February, with a few notable exceptions. There are no competitive TIGER grants or additional money for high speed rail in this version, but it does include the flexibility to use 10 percent of transit funds on operating assistance to preserve service and jobs.

Highway Funding: $27.5 billion total

• $60 million for competitive grants to serve ‘priority primary routes’
• $20 million for disadvantaged business enterprises bonding assistance
• 3% set-aside for Transportation Enhancements (We’re checking on this. This number seems lower than it should be)
• 30% sub-allocated to metropolitan areas
• Priority should be given to projects in economically distressed areas and those that can be completed within a 3-year timeframe

Transit Funding: $8.4 billion total

• $6.15 billion for formula grants
• $100 million for discretionary greenhouse gas grants to transit agencies
• $500 million for New Starts/Small Starts
• $1.75 billion for Fixed Guideway (Rail) Modernization
• Allows up to 10% of formula funding to be used for operating assistance
• Priority to economically distressed areas

Total Intercity Rail Funding: $800 million

• $800 million for Amtrak for fleet modernization (Streetsblog DC points out the connection to GE’s clean locomotives here)

Stay tuned via twitter with @t4america and @eschor if you want to follow the likely vote this afternoon.

The two called for funding “ready-to-go” projects on the order of $48 billion for highways and $15 billion for public transportation. In an effort to jump start transportation jobs, the two chairmen and Appropriations Committee Chairman David Obey are also reported to be discussing a two-year continuation of the current transportation program, possibly financed by the general fund or other non-motor fuel source, to pay for these 9,500 projects.

In response to these developments, James Corless, director of Transportation for America, issued the following statement:

We applaud the chairmen for pointing out that the rehabilitation of our over-taxed highway and transit systems is as imperative as it is effective at putting people to work on a timely basis. Among infrastructure-related investments, such ‘state-of-good-repair’ projects will create more jobs, faster than other investments. As we have argued since before the first stimulus, it makes perfect sense to restore our existing infrastructure as we prepare to lay the groundwork for a more transformational vision.

However, we are deeply concerned that a two-year continuation will once again provide an excuse for some members of Congress to defer this country’s desperate need to create a new, long-term plan for investing in the infrastructure we need to remain competitive in a rapidly evolving, global economy. As we noted in a letter to Congressional leaders this week:

Any short-term jobs package for transportation should be limited to no more than one year, providing a strong boost to the American economy in 2010, while making sure this Congress finishes its work on a longer-term transformational transportation authorization bill that can bring our nation’s transportation policy and programs into the 21st Century.

With Congress mulling a potential “jobs bill,” in the coming weeks and months, Transportation for America also sent this letter to House Speaker Nancy Pelosi. Click to read it in full.

Download this full document (.doc)

Surface Transportation Program

The conference agreement provides $27,500,000,000, instead of $30,000,000,000 as proposed by the House and $27,060,000,000 as proposed by the Senate.

• 50% of funds distributed to State DOTs by STP formula
• 50% of funds distributed to States under the FY08 obligation
• State DOTs have 120 days to use the funds or lose them to other States, but they can petition DOT for a one-year extension.
• 30% of all State funds are suballocated to local areas, which are not subject to the use-it or lose-it redistribution requirements.
• 3% set aside for Transportation Enhancements.
• There is no requirement to prioritize repair and maintenance; project selection priority is given to projects that can be completed within 3 years and are located in economically distressed areas.
  • Flexibility provided to State DOTs to fund passenger and freight rail transportation and port infrastructure projects.
• $60 million included as discretionary capital grants by USDOT for projects that can be completed in 2 years.
• $40,000,000 included for DOT oversight and administration.

Passenger and Freight Rail Programs

The conference agreement provides:

• $8,000,000,000 for high-speed rail corridors and intercity passenger rail service. Funds are allocated by DOT between the Capital Assistance to States program and a new High Speed Passenger Rail program.
• Projects do not have to be in a state rail plan and there is a 100% federal share.
• DOT will submit a strategic funding plan within 60 days and issue interim guidance covering grant terms, conditions and procedures within 120 days.
• $1,300,000,000 for AMTRAK instead of $800,000,000 in the House and $850,000,000 in the Senate. Of the total funds, $450,000,000 is for capital grants for security improvements. No more than 60% of the remaining funds shall be spent for capital improvements on the Northeast Corridor.

Transit

The conference agreement provides:

• $6,900,000,000 for transit capital projects instead of $8,400,000,000 proposed by the Senate and $7,500,000,000 proposed by the House.
  • 80% allocated by FTA urbanized formula, 10% is FTA rural, and 10% is FTA growing states and high-density formula.
  • Includes $100,000,000 (instead of the $200,000,000 proposed by the Senate) for discretionary grants to public transit agencies for capital investments that will assist in reducing the energy consumption or greenhouse gas emissions of their public transit agencies.
  • Transit agencies have 180 days to use the funds or lose them to other States, but they can petition DOT for a one year extension.
• $750,000,000 instead of $2,000,000,000 as proposed by the House for Rail Modernization and Repair
  • Funds also have 180 day use-it or lose-it provisions.
• $750,000,000 instead of $2,500,000,000 in House for New Starts and Small Starts projects that are? already in construction or are nearly ready to begin construction.
  • Priority for projects already under construction or able to obligate within 150 days. The funds are available through Sept. 30, 2012.

Supplemental Discretionary Grants

$1,500,000,000 instead of $5,500,000,000 proposed by the Senate for projects with national, metropolitan, or regional significance.

• Continues intermodal focus, noting interstate and bridge maintenance and repair, freight and passenger rail, intermodal ports, and new starts/small starts are specifically eligible.
• Changes funding eligibility to include transit agencies directly.
• Projects that require less than a 100% Federal share are prioritized.
• DOT selection criteria will be published within 90 days; projects nominated within 180 days; and the winners selected within 1 year. Projects must be complete within 3 years.
• The program includes $1.5 million for DOT administration and oversight.

Other key elements in the bill related to transportation:

Recovery Zone Bonds

Creates a new category of tax credit bonds for investment in economic recovery zones. Authorizes $10 billion in recovery zone economic development bonds and $15 billion in recovery zone facility bonds to be issued during 2009 and 2010. Each state would receive a share of the national allocation based on that state’s job losses in 2008 as a percentage of national job losses in 2008 (each state will receive a minimum allocation of these bonds) which will be sub-allocated to local municipalities. The funds may be spent to invest in infrastructure, job training, education, and economic development in areas within the boundaries of the State, city or county (as the case may be) that has significant poverty, unemployment or home foreclosures. This proposal is estimated to cost $5.371 billion over 10 years.

Modify Speed Requirement for High-Speed Rail Exempt Facility Bonds

Under current law, States are allowed to issue private activity bonds for high-speed rail facilities as long as the facility will transport passengers between metropolitan areas using vehicles that are reasonably expected to operate at speeds in excess of 150 miles per hour between scheduled stops. This provision would allow these bonds to be used to develop rail facilities that are used by trains that are capable of attaining speeds in excess of 150 miles per hour. This proposal is estimated to cost $288 million over 10 years.

Infrastructure Financing Tools – Tax Credit Bond Option for State and Local Governments (“Build America Bonds”)

The Federal government provides significant financial support to State and local governments through the federal tax exemption for interest on municipal bonds, which reduces the cash interest payments that a State or local government must make on its debt. Tax credit bonds differ from tax-exempt bonds in two principal ways: (1) interest paid on tax credit bonds is taxable; and (2) a portion of the interest paid on tax credit bonds takes the form of a Federal tax credit. The Federal tax credit offsets a portion of the cash interest payment that the State or local government would otherwise need to make on the borrowing. For 2009 and 2010, the bill would provide State and local governments with the option of issuing a tax credit bond instead of a tax-exempt governmental obligation bond. Because the market for tax credits is currently small given current economic conditions, the bill would allow the State or local government to elect to receive a direct payment from the Federal government equal to the subsidy that would have otherwise been delivered through the Federal tax credit for bonds. This proposal is estimated to cost $4.348 billion over 10 years.

Reinvestment in Renewable Energy – Parity for Transit Benefits

Current law provides a tax-free fringe benefit employers can provide to employees for transit and parking. Those benefits are set at different dollar amounts. This provision would equalize the tax-free benefit employers can provide for transit and parking. The proposal sets both the parking and transit benefits at $230 a month for 2009, indexes them equally for 2010, and clarifies that certain transit benefits apply to federal employees. This provision is estimated to cost $192 million over ten years.

WASHINGTON, D.C. – The transportation spending priorities in the stimulus bill conference report passed by the House of Representatives today are a significant departure from the status quo and ought to represent the leading edge of a major new thrust in our national infrastructure policy. The Senate is expected to pass the conference report as soon as tonight.

Given the need for haste in crafting the bill, congressional and Administration negotiators were handcuffed by backward-looking, existing programs even as they tried to shape investments for a future of reduced oil dependency, greater opportunity for Americans to join the middle class and cleaner transportation choices. Despite some shortcomings resulting from current transportation law, Congress has adopted a bill that if properly enacted by state and local authorities, could be a down payment on a new direction for America’s infrastructure:

• $27.5 billion allocated to the Surface Transportation Program (STP) that should go a long way to restoring our transportation networks to a state of good repair. Unfortunately, Congress neglected to include language ensuring this money is prioritized to fix crumbling roads and bridges, so now the onus is on state and local governments to ensure these funds are not spent improperly.
• Unprecedented flexibility for spending STP funds — traditionally spent mostly on highways — on ports, transit, passenger and freight rail or other projects as national, state or regional needs may require.
• A significant share of transportation dollars directed to local decision makers and metropolitan regions rather than state departments of transportation.
• $8.4 billion for public transportation, recognizing the strong and growing demand for transit service. However, none of these funds can be used to prevent cuts in service and jobs at transit agencies suffering from massive budget shortfalls. It is up to Congress to ensure this gap is filled in upcoming appropriations negotiations.
• $9.3 billion for intercity and high-speed passenger rail, an encouraging indication that Congress realizes how important it is to expand alternatives to our overburdened highway and aviation networks.
• The inclusion of up to $825 million for projects that will make our streets safer for walking and biking, providing help for commuters who have increasingly turned to these alternatives to save money and increase their physical activity.

When President Obama signs the American Recovery and Reinvestment Act, it will provide a down payment on the transportation investment needed to get our economy moving. But the urgency of recreating our national transportation program to address the challenges of the future is more starkly clear than ever.

Now Congress and the Obama-Biden administration must begin consideration of the successor legislation to the expiring SAFETEA-LU law — our current, 1950s-era federal transportation program. This critically important legislation must provide a new 21st Century vision for investment in our transportation system that is safer, healthier, cleaner, more equitable and smarter so that our nation can compete and thrive in the future economy.

—

We now have what appear to be the final numbers for transportation infrastructure in the stimulus. While the totals for transit and highway spending were both in the same ballpark as what they were in the original House and Senate bills, the sum for high-speed has drastically increased from the numbers in the first two versions. Here’s a rundown:

• $27.5 billion for highways and bridges
  
• $8.4 billion for transit
  
• $8 billion for high-speed rail
• $1.3 billion for Amtrak

Although it’s too early to know exactly how things played out behind the scenes, the Associated Press reports that President Obama and Senate Majority Leader Harry Reid helped push up the funding for high-speed rail.

Here is our side-by-side comparison on the transportation spending in the two versions. For the non-policy wonks out there, you’ll want to stick to the numbers at the top before it descends into the particulars of the second half of the table.

Check back here later Tuesday or Wednesday morning for our complete list of what we’re asking Congress to do in conference. (For example, keep the House’s $12 billion for transit.)

You’ll need to click through to see the full table if you’re on the main blog page.

Note: Transit funding is allocated to transit operating agencies directly through the Federal Transit Administration.

The Senate will move to vote on the overall stimulus package Monday or Tuesday. Then it moves to conference committee with the House to determine the balance between the two bills that will ultimately be voted on by both chambers and sent to the President’s desk.

Streetsblog Network members The Transport Politic and Greater Greater Washington both had good summaries of the Senate compromise. The Transport Politic breaks down the funding compared to the House version, and points out some crucial differences that will be hashed out in conference:

The final version of the compromise stimulus bill, which was formulated by a group of about 20 moderate senators, has been released by Senated Ben Nelson (D-NE). It does not decrease funds currently proposed to be allocated to high-speed rail or transit programs, but it does not meet the higher standards for funding for fixed guideways and New Starts that were provided in the amendment added to the House version of the bill by Representative Jerrold Nadler (D-NY).

Greater Greater Washington reminds us that while transit wasn’t raided and redirected to highway funding, there’s still no assurance that the highway funds will be directed to where they can be the most effective. Repair and maintenance will create more jobs, spend money more quickly, and will not come with the price tag of future billions in maintenance like new highways do.

People on the left and right have plenty of other complaints about this stimulus. And it still gives the lion’s share of money to states under the old formulas which favor highways. There’s no “fix it first” requirement making sure state DOTs repair crumbling bridges before building greenfield freeways. Still, we were able to stop the Senate from making things a lot, lot worse. That’s a start.

Nothing is truly finished yet. Until the Senate passes their version, amendments could still spring up and funding levels could change. If it passes, the House and Senate will conference together next week to determine how to balance out portions of the bill that are not in line with each other.

For example, the House has $12 billion for transit, while the Senate has less than $9 billion. As TP points out, “the bills are different enough that we won’t know what the final bill will look like until the Senate/House conference committee releases its report after it meets.”

Stay tuned here on the blog or on Twitter to follow updates next week as the bill proceeds. Watch Monday for news about urging the conference to keep the House’s higher transit figures.

In part, by cutting transit’s already paltry amount nearly in half, and raising the amount of highway spending by an undisclosed amount.

According to a Senate memo obtained by The Plum Line, there is a proposal to remove $3.4 billion from transit funding and raise the funds for highways above the $27 billion already earmarked for highway spending. If true, cutting $3.4 billion from public transportation (and increasing highway spending) would reduce the roads/transit split in this bill far below even the tepid 80/20 share that current federal spending reflects.

Tell your senator not to support any proposed change to the stimulus package that reduces funds for transit below those in the original Senate proposal, but rather to push for increasing the funds to meet the soaring demand for reliable, clean transportation. And tell them not to increase highway funding without increasing transit proportionally.

Call-in information removed in light of agreement reached in Senate.

For targeting purposes, the Senators reported to be in the room are Ben Nelson (D-NE), Mark Begich (D-AK), Tom Carper (D-DE), John Tester (D-MT), Mary Landrieu (D-LA), Evan Bayh (D-IN), Jim Webb (D-VA), Mark Warner (D-VA), Michael Bennett (D-CO), Claire McCaskill (D-MO), Jeanne Shaheen (D-NH), Mark Udall (D-CO), Joe Lieberman (I-CT), Susan Collins (R-ME), Arlen Specter (R-PA), Mel Martinez (R-FL), Lisa Murkowski (R-AK), and George Voinovich (R-OH).

Leave us notes in the comments on your calls if you like.