Transit grants out the federal door, but what about the cuts?
March 8, 2010By Stephen Lee Davis
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| Park and Ride Ribbon Cutting Originally uploaded by WSDOT |
Secretary of Transportation Ray LaHood is (rightfully) touting the great news on his blog this morning that the Federal Transit Administration met their ambitious deadline for distributing 100% of the transit funds from the stimulus package. That’s great news, but it should be accompanied by the sobering reminder that these public transportation systems that get people to work each day largely couldn’t use that money to keep from having to cut service at a time when it’s needed the most.
The FTA has now doled out 881 grants totaling $7.5 billion since the stimulus was signed last year, and LaHood notes that these grants have funded the purchase of nearly 12,000 buses, vans and rail vehicles; construction or renovation of more than 850 transit facilities; and $620 million in preventive maintenance to keep systems running smoothly.
But what about the hundreds of agencies cutting back service, raising fares, or laying off workers — like the terrible story from Atlanta we chronicled last Friday, where 25-30% of all service may be history come June?
Unfortunately, the FTA’s hands were tied with the rules for the grants set by Congress, which meant that almost all of the money had to be used to purchase new equipment or perform maintenance, even if those agencies couldn’t afford to hire or train the new drivers to operate the buses or railcars. We say “most of the money,” because a group of lawmakers were able to successfully include a provision in a separate bill during the summer that made it possible for local transit agencies to spend up to 10% of their transit stimulus money on operations. But in many places like St. Louis, where the deficit was ten times the $4.6 million they could now spend on service, that’s not enough to keep from having to make drastic cuts or lay workers off, even while getting an influx of federal money.
With a full transportation bill likely months away, in the short term we need to urge the Senate to include money in any future jobs bills to help keep transit systems running.
With millions who depend on these systems each day to get to work, making sure that reliable transit service doesn’t disappear will help get them to their jobs quickly and conveniently each day, ensuring that many of them stay employed.
Transit riders in Atlanta face massive cuts, “wholesale restructuring” of service
March 5, 2010By Stephen Lee Davis
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| Eastbound Originally uploaded by robholland |
| A family on an eastbound MARTA rapid rail train in Atlanta. |
Transit riders in Metro Atlanta will soon require a new system map to find their way because the current map is about to be ancient history, a document fit for use only by archivists and history buffs. Of course, this would only apply to those who still have a bus or train to wait for after MARTA goes through with massive cuts this year. This story from the Atlanta Journal Constitution was included in a few headline posts from the usual suspects earlier this week, including one of ours, but the desperate situation in Atlanta is worth a closer look.
Wrap your head around this number: MARTA is facing a budget deficit of $120 million, on an operating budget of $399.1 million, making their deficit nearly a full third of the operating budget.
As a result, the cuts the agency is forced to consider are downright shocking. More than half of Atlanta’s 131 bus routes could be cut entirely, and rail service will be cut severely. Wait times for a train could be as much as 30 minutes on weekends before 7 a.m. and after 9 p.m., and even rush-hour train intervals could be as much as 12 minutes. The AJC pegs the cuts as approximately 25-30 percent of all service.
While the loss of routes or the inconvenience of long waits and increased transfers will result in some riders going back to their cars or finding other options, what about the thousands who depend on MARTA as their transportation lifeline to reach work, get to the doctor or pick up their kids at school? The “lucky” ones might have an alternative, a longer wait or less convenience. But too many riders will be left completely stranded, unable to get to important destinations as routes disappear entirely in the South’s biggest metro and the economic core of the state.
The popular refrain among some Atlantans is that MARTA is a bloated bureaucracy that wastes money. The truth is far different. MARTA enjoys the lowest cost per-mile of passenger rail service for any heavy rail system in the United States, and survives on a penny sales tax from two counties, with no dedicated funding stream from the State of Georgia. They are the largest transit agency with no such dedicated funding source in the country.
| Atlantans: Tell us your story of how these cuts will affect you. |
This year’s situation was narrowly avoided last year when the Atlanta Regional Commission, the Metropolitan Planning Organization (MPO) for the region, found a way to transfer $25 million in last year’s stimulus funds to MARTA. In return the agency spent $25 million of capital funds on infrastructure improvements around their stations like better sidewalks, crosswalks, and other vital bike and pedestrian improvements to improve access.
The creative deal with the ARC was necessary because by a curious — and old — piece of state law, MARTA has to evenly split their tax revenues between operations and capital funds (they have a capital budget of $388 million this year), meaning they aren’t even able to set their own operating budget.
The Georgia State Senate passed a bill that would have removed that rule, allowing MARTA the flexibility to set their own operations and capital budgets. This would have enabled the agencyto basically plug budget holes with a share of (formerly) capital funds — never an ideal situation, but one that would have staved off dramatic fare increases and wholesale cancellation of service. Unfortunately for Atlantans, that bill died in the Georgia State House on the last day of the legislative session, leaving many upset and frustrated at the State’s failure to act.
Even with the funds from the ARC, MARTA had to raise their base fare $0.25, and weren’t able to restore all of the service that had been proposed for cuts, though they did avoid the drastic step of closing down service entirely one day a week.
MARTA Board Chairman Michael Walls pointed out that this was no permanent solution to the crisis, noting “this is a one-time infusion of funds” in a MARTA press release. “We are facing increasing deficits in the coming fiscal years. It is imperative that we identify a permanent, dedicated source of funding for transit as soon as possible in order to avoid more drastic cuts in the future,” he said.
That future has become the present, so what will the State do this time? Will they remove the barrier that prevents MARTA from making their own budget? At a broader level, what help will the federal government provide for the hundreds of other transit agencies facing this same crisis? Will they turn their back on the millions who depend on public transportation each day?
Want to do something? Here are three things you can do:
- Tell Senator Harry Reid to include funding for keeping transit systems running in the next round of jobs-creation legislation he’s planning to bring to Congress.
- Tell us your story! How are these cuts going to affect you in your daily life? Will you be going back to your car? Will you be stuck with no way to get to work? We want to know.
- If you’re in Atlanta, join up with the Citizens for Progressive Transit or the Area Coalition for Transit Now Facebook page calling for Gov. Perdue to call a special legislative session. These groups are also joining with others in Atlanta to organize a “Ride MARTA” day in late March to drum up support statewide.
Opposition to Senate extension results in looming shutdown of federal transportation programs
February 26, 2010By Stephen Lee Davis
| Do you live in Kentucky? Call Sen. Bunning’s State HQ and tell him to end his roadblock. Click here for more information on making a call. |
At a point in history when American trust in Congress is at or near all-time lows, it’s probably not a great time to interrupt regular programming to announce that a single Senator kept the Senate from passing an emergency one-month extension of the current transportation bill before adjourning today, leaving it to expire over the weekend and threatening the flow of money to transportation programs — federal and state.
The transportation bill, which has already been extended four times since its initial expiration in 2009, funds federal and state transportation programs. Which means that come Monday or Tuesday (it’s uncertain which at this point), federal transportation agencies from the Department of Transportation to the Federal Transit Administration will be furloughing employees and in a state of near shutdown.
Perhaps most importantly, and of much greater concern to most people than the fact that federal transportation officials in D.C. might be sent home for a few days, the government checks that go out every two weeks to state departments of transportation to reimburse them for their ongoing contracts for transportation projects will not be sent out on Monday as usual, regardless of what happens Monday, according to several of our sources.
As Elana Schor (@eschor) pointed on Twitter this afternoon, this means “$184 [million] per day in lost transpo reimbursements for road repairs, bridge building, and transit.”
Chairman Jim Oberstar held a press conference to talk about the issue this afternoon, calling Sen. Jim Bunning’s obstruction “astonishing” and comparing it to the government shutdown of 1995. He detailed the specifics of what will happen at federal and state transportation agencies as the flow of money that funds highway and bridge repair, transit agencies and programs will shut off Monday. Later this afternoon, he said in a press release on Facebook that “I find it outrageous that one senator can kill a piece of legislation and cause chaos for our cities and states. Thanks to this one person’s intransigence, Minnesota will not be reimbursed for its federal share of highway projects until we get this mess sorted out.”
He points out that some states may have to suspend work on projects — something that Missouri has already done by announcing that they won’t open up several new projects for bid next week with their funding stream so up in the air.
As usual, Elana Schor at Streetsblog DC has some of the most thorough coverage of the issue, though it is making headlines in Politico, CQ and other outlets.
We’ll have more intel and reaction on Monday, and hopefully news about a solution to the bill’s expiration.
Have you seen an announcement (like Missouri’s) in your state of halted projects, delayed contracts, or furloughed workers? Let us know in the comments.
T4 jobs proposal would create nearly half a million jobs, according to Economic Policy Institute
February 17, 2010By Sean Barry
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| Photo: Dan Burden |
The Economic Policy Institute ran the numbers on Transportation for America’s jobs proposal and concluded that our plan for increased transportation spending would create 480,000 jobs.
The Senate’s first jobs bill currently has no money for transportation, other than a transfer of general fund dollars to cover the looming gap in the Highway Trust Fund while extending the transportation bill (SAFETEA-LU) until the end of the year. (Senate Majority Leader Harry Reid is said to be planning several separate bills, one of which may focus on transportation).
Our proposed package for Congress directs $34.3 billion toward a mix of public transportation, highways and bicycle and pedestrian projects, closely resembling EPI’s own plan. Our proposal contains roughly $16 billion for transit, $8.1 billion for the Surface Transportation Program (highways), $9.8 billion for competitive grants (like the TIGER grants announced today) and $1.5 billion for Active Transportation such as bike and pedestrian facilities to make walking and biking safer and more attractive.
(View the full detailed T4 America proposal here.)
According to EPI’s analysis, the Transportation for America proposal is especially strong at job creation for low-wage earners and Americans without a college degree. The plan is also effective at creating jobs for African-Americans and Hispanic workers, two demographic groups that have borne a disproportionate share of the economic downturn’s effects.
Ethan Pollack, a policy analyst for EPI, characterizes T4 America’s approach as “a well-tailored package of transportation investments” that can “help put people back to work.” The EPI numbers do not account for the increased consumer spending that will result from these newly employed Americans.
As the U.S. Senate continues to piece together its job-creation legislation, we encourage members to strongly consider substantial investment in infrastructure repair and money to keep transit systems running. Jobs legislation continues to create an opening for increased accountability and benchmarks for federal transportation policy, laying the foundation for more jobs and greater prosperity down the road.
For information about EPI’s report and to obtain a complete copy, click here: http://www.epi.org/publications/entry/ib271/
Obama’s 2011 budget gives a lift to livability and transportation
February 2, 2010By Sean Barry
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President Obama’s Fiscal Year 2011 budget is a step forward for transportation options and livable communities and contains $1 billion in programs and grants to help turn this positive vision into reality.
In this budget, the President and his advisers attempt to thread a needle between the urgency of unemployment and the longer-term implications of debt. Given these realities, it is gratifying that Obama chose to boost funding on transportation and livability as other programs face cuts. It shows that his team gets it. They understand that investing in the neighborhoods and communities of tomorrow can both create jobs and lay the foundation for future prosperity. Indeed, that dual purpose has been a theme of Obama’s domestic agenda throughout 2009.
The administration had signaled a new path last year with its creation of the Partnership for Sustainable Communities, a joint effort among the Environmental Protection Agency, the Department of Housing and Urban Development and the Department of Transportation. The administration recognized that making transportation choices, affordable housing and economic opportunity available to more Americans requires real collaboration among these key agencies. The partnership is on track to receive $830 million in the FY 2011 budget.
The budget also allocates $1 billion for high-speed rail, on top of the $2.5 billion in the current year’s budget and $8 million in grants from the 2009 American Recovery and Reinvestment Act.
Here are few other programs and pilots worth mentioning:
- $4 billion for the National Infrastructure Innovation and Finance Fund
- $150 for the Sustainable Communities Initiative, including an inter-agency research effort on the transportation and housing linkage
- $150 million for Catalytic Investment Competition Grants, a competitive program to support job-creation and large scale projects in disadvantaged areas
- $527 million for the Livable Communities Program
- $32 million for the Healthy Communities Initiative
This is a budget praise-worthy for both the help it delivers today and the investment ushered in for tomorrow. It deserves our support.
President Obama hails high-speed rail as “the infrastructure of tomorrow”
January 28, 2010By John Robert Smith
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| John Robert Smith is co-chair of the Transportation for America campaign and former mayor of Meridian, Mississippi. |
Hearing President Obama call high-speed rail “the infrastructure of tomorrow” gave me great hope. Very rarely has transportation investment made the final cut in a presidential State of the Union address. The fact that it did make the cut this time really speaks to the president’s commitment to making high-speed rail a reality.
I’ve heard critics say over the years that the U.S. is too big for high-speed rail. China is the biggest country in the world and they built over the Himalayas and are now committing an additional $500 billion over the next 20 years. Saudi Arabia too is investing in high-speed rail in preparation for that certain day when oil reserves will no longer sustain the country. If they can do it, we can do it.
High-speed rail investment is about jobs, and not just temporary jobs, but long-term American jobs that cannot be outsourced. These jobs will employ Americans to build both rail networks and passenger rail equipment. This could be a real lifeline for unemployed automotive workers struggling to get and keep a new job. And these Americans will be going to work building a cleaner environment and more sustainable future for all of our children.
I have seen first-hand what investment in rail infrastructure and transit-oriented development can do to lift a mid-sized city like Meridian, Mississippi. Now there are people living in downtown, there’s entertainment downtown and a conference center has been built. It all started with a public sector investment done right. The vibrancy that returns to smaller communities as a result of rail service has improved the quality of life for millions of Americans. This is not about big city versus small, or urban versus rural. Chicago and Los Angeles will surely benefit from rail investment, but so too will places like Minot, North Dakota and Whitefish, Montana. This addresses the needs of our entire country and should be embraced by our representatives in Washington from all corners.
Of all the issues facing Congress, surely high-speed rail investment can transcend partisanship. As a Republican, I have worked with some the most liberal and conservative members of the United States Senate to protect Amtrak for people who depend on it. I see the potential for similar partnerships today and am heartened that we have a president who is leading the way.
Mayor John Robert Smith is co-chair of the T4 America Campaign, president of Reconnecting America, and former mayor of Meridian, Mississippi.
High speed rail grantees awarded, was your state included?
January 28, 2010By Stephen Lee Davis
As you may have heard by now, President Obama is following up his favorable mention of high speed rail in last night’s State of the Union address with a Tampa event to announce the winners of federal grants for high speed rail service. (In case you missed our official statement about the announcement, read that here.)
The President is due to make his announcement this afternoon, but the list of awardees has already been released. So who were the big winners? Certainly Florida and California, who got the biggest grants, netting $1.25 and $2.3 billion respectively. Although the lion’s share of funding is going toward a handful of corridors, 31 states will receive some portion of funding or benefit from new or improved rail service, according to reporting on the proposal. A few notable bloggers have already done superb analysis of the recipients of the $8 billion, starting with Yonah Freemark’s excellent corridor by corridor breakdown on the Transport Politic:
After months of speculation about which states will get funding from the Federal Railroad Administration to begin construction on new high-speed corridors, the news is in. As has been expected, California, Florida, and Illinois are the big winners, with more than one billion in spending proposed for each. But other states with less visible projects, including Wisconsin, North Carolina, and Washington will also get huge grants and begin offering relatively fast trains on their respective corridors within five years. The distribution of dollars is well thought-out and reasonable: it provides money to regions across the nation and prioritizes states that have made a commitment of their own to a fast train program.
Elana Schor at Streetsblog DC included a quote from Chairman Oberstar, who was certainly delighted at the first small step toward a true nationwide high speed rail network.
House infrastructure committee chairman Jim Oberstar (D-MN) hailed today’s first rail grants as “a transformational moment,” adding: “The development of high-speed rail in the United States is an historic opportunity to create jobs, develop a new domestic manufacturing base, and provide an environmentally-friendly and competitive transportation alternative to the traveling public.”
Information about all the corridors can be found in the White House briefing room online. We hope to post additional reaction and analysis later today or tomorrow.
Building America’s Future brings bipartisanship to rebuilding the country
January 21, 2010By Sean Barry
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| President Obama at the White House with Building America’s Future co-founders: Mayor Michael Bloomberg (I-New York City), Governor Ed Rendell (D-Pennsylvania) and Governor Arnold Schwarzenegger (R-California) |
For two years now, Building America’s Future has been beating the drum for substantive investment in our nation’s roads, bridges, railways and ports. Yesterday, the bipartisan coalition ramped up its message to Washington with a press conference pushing for a National Infrastructure Bank.
BAF has walked the walk on coalition building from its inception: Founding members include California Republican Governor Arnold Schwarzenegger, Pennsylvania Democratic Governor Ed Rendell and independent Michael Bloomberg, the thrice-elected mayor of New York City. Yesterday’s event revealed a similar cross-section, with advocates from many corners of transportation.
Amid economic anxiety and disillusionment with “sausage-making” in Washington, BAF’s message is refreshingly simple: Let’s get serious about rebuilding our country and refuse to let politics get in the way.
A National Infrastructure Bank, the subject of legislation introduced by Representative Rosa DeLauro of Connecticut, would be an independent entity for selecting and financing major infrastructure projects. Connecticut Senator Chris Dodd, a Democrat, plans to shepherd companion legislation, which he originally introduced in 2007 with former Nebraska Senator Chuck Hagel, a Republican. Both are active in BAF.
Three features of the NIB lend to its bipartisan appeal:
First, a National Infrastructure Bank would choose projects based on merit, saving money by prioritizing federal funds where they’re most needed and boosting the economy by targeting projects that benefit more Americans.
Second, the bank would allow for a wider array of projects to be considered. It goes beyond paving roads and erecting bridges to include rebuilding broken classrooms, improving water treatment and storage, building high-speed rail and laying down broadband access throughout the country.
Third, the Bank would help break down the silos, so to speak, by compelling us to look at infrastructure in a broader context. Reauthorization of the federal transportation law has been more of an A-9 or Metro section issue. By making infrastructure more interesting and relevant, this proposal offers the potential to push the issue closer to page one.
Those are three good reasons Transportation for America is proud to partner with BAF on getting this bank in business, and we look forward to supporting a growing coalition of supporters to make it happen.
Cleaner buses can create jobs, improve the environment
January 14, 2010By Stephen Lee Davis
A new study by Duke University illuminates the fact that thousands of green jobs are waiting to be tapped in transit bus manufacturing — if the federal government will make a sustained commitment to investing in public transportation.
The Duke University Center on Globalization, Governance and Competitiveness released a new report this morning during a briefing at the Natural Resources Defense Council that evaluated the many U.S. job opportunities that can reduce carbon emissions in public transit buses. Jobs in and related to public transportation are some of the lowest hanging fruit in the push for green jobs, so what’s keeping the domestic manufacturing industry from ramping up?
The U.S. market for heavy-duty transit buses is small, currently delivering 5,000 to 5,500 buses per year. U.S.-based firms dominate the North American bus market, with an 88% share in total buses and a 51% share in heavy-duty transit buses. Under current U.S. transportation policy, which favors highway spending and de-emphasizes public transit, bus orders are small and sporadic; this makes it difficult for the bus industry to grow.
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| Non-comprehensive chart of the domestic supply chain for buses. From the Duke CGGC report, p.30 |
The report is well worth a read, but for a much simpler case study of what this means in real life, consider one piece of the complex supply chain for transit buses that we tend to take for granted: seats. On a crowded bus or train, you may not get the chance to sit in one, but when you do, you probably don’t think about the design or innovation that went into that seat. It probably didn’t occur to you that seats can add hundreds or thousands of pounds of weight that the bus needs energy to carry.
David McLaughlin, vice president of the American Seating Company, a U.S.-based manufacturer of seats for buses and railcars (among many other things), made it clear at this morning’s briefing that increased investment in transit would be good for business. But he also stressed that those benefits are not limited to American Seating alone. As a result of the stimulus bill from 2009, McLaughlin’s company calculated $2.9 million in new business, the bulk of which resulted from seat orders for buses and railcars ordered by transit agencies across the country with stimulus dollars.
“$2.9 million means 11 new jobs for us at American Seating,” he said. In another internal study, His company discovered that 1 job at American Seating sustained roughly 6 others in their immediate supply chain.
Take those two facts together and you begin to see the economic impact of the small public transit investment in the stimulus — and what could happen on a much larger scale. American Seating, just one manufacturer of one particular component that goes into transit vehicles, created the equivalent of 11 jobs through the stimulus. Those 11 jobs create or sustain 66 more at the company that supply them.
Stimulus spending will not be enough, however. Although the economic activity resulting from the stimulus was important, McLaughlin said his business needs investment that is reliable, consistent and predictable — like the funding that could result from a full six-year transportation bill. Stable funding sources will fuel the research and development that can cut seats weights even further and enable buses to use less energy.
“The stimulus package has been a good thing, but what we really need is sustained predictable investment, so we can make the investments we need to make to ensure our viability. This isn’t just a public issue, it’s a public-private issue. …It’s jobs,” he said.
The message from all fronts this morning was consistent. To spur job creation through manufacturing cleaner transit buses, the industry needs reliable, predictable investment and government policies that encourage innovation. Increasing the available federal funding for new transit lines and rolling stock is one aspect. Ensuring operation of these new transit lines remains affordable is another. Both are needed. As the report says:
If federal, state and local policy were to shift to a clear, sustained commitment to public transit, the nation would have the manufacturing capability to meet the resulting increased demand for transit buses. However, the transit bus industry is unlikely to have significant market growth in the absence of several major changes: better management of public transit funds and improved coordination with manufacturing firms; significant, sustained public funding; and perhaps most important, a comprehensive transportation policy shift that encourages public transit use.
Or, in other words, give transit agencies money to buy new rolling stock — and the money to operate them — and you’ll be creating green jobs on Main Street all across America. Buy new hybrid buses for New York City or San Francisco to reduce emissions there, and support new jobs in towns like Grand Rapids, Michigan that need jobs more than anything.
Feds announce change to consider livability in funding transit projects
January 13, 2010By Stephen Lee Davis
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| TriMet MAX on the Transit Mall Originally uploaded by paulkimo90 |
| From the Transportation for America Flickr group. |
Following through on a policy change hinted at for much of 2009, Transportation Secretary Ray LaHood announced this morning that federal transit officials would begin considering expanded criteria as they select which transit projects to fund, bringing a new focus on improving livability and sustainability.
At the Transportation Research Board’s annual conference this morning, Secretary LaHood made it clear that a wider range of positive benefits would be considered in the application process for new transit lines or systems. These applications were being unfairly burdened by the previous administration’s cost-effectiveness measurement, which left out such benefits as energy efficiency, economic development and reduced emissions.
“Our new policy for selecting major transit projects will work to promote livability rather than hinder it,” he said. “We want to base our decisions on how much transit helps the environment, how much it improves development opportunities and how it makes our communities better places to live.”
Of course, the one problem that this will not fix is the very high demand for a limited supply of New Starts funding. Even under the old narrow rules for winning approval, only a small percentage of the many applicants were receiving limited funding, and even then, the federal government was only matching about half of local funds, compared with at least 80 percent for road projects.
Still, this change is keeping in line with the positive reforms contained in Chairman Jim Oberstar’s draft reauthorization bill released back in the summer. In June, we quoted the bill’s section on New Starts reform, noting that the proposal to remove the cost-effectiveness requirement and include other “livability” criteria “equalizes the treatment of proposed transit projects and elevates the importance of the benefits that will occur in the community once the project is built.”
The Obama administration and all the leaders at USDOT and the Federal Transit Administration are to be praised for their leadership in changing this program for the better. The next step is securing a greater share of funds for public transportation in the upcoming reauthorization and improving federal match rates to equalize the choices state or regional leaders face between new highways and new transit lines.
Update: Chairman Oberstar responded with a statement of his own praising the change, also observing that New Starts needs greater funding to meet the overwhelming demand. ”Now we need increased investment dollars to follow this reform, so that we can move forward with transit projects that relieve congestion, reduce emissions, increase our energy independence, and promote more livable communities across the country,” he said. (From Elana Schor’s post on Streetsblog Capitol Hill)












