T4America Blog

Administration releases their principles for an 18-month transportation bill

When DOT Secretary LaHood was on Capitol Hill a few weeks ago discussing the Obama Administration’s plan for a transitional transportation bill, he mentioned that their plan for an 18-month extension would “enact critical reforms” while stopping short of a fundamental overhaul of the program — leaving that for the full six-year bill.

A lot of transportation advocates were left wondering what sort of reforms the administration would propose. Today we got a first look at their general proposal (via Transportation Weekly.)  Update: Elana Schor @ Streetsblog has the details on the National Infrastructure Bank.

As you may remember, Chairman James Oberstar and his House Transportation and Infrastructure Committee are at odds over the timing of the authorization bill. Oberstar and company want to pass a full six-year authorization bill by September, while the Administration favors an 18-month transitional bill to patch the soon-to-be insolvent Highway Trust Fund.

At the forefront of the administration proposal is a $20 billion transfer from the general fund to keep the Highway and Mass Transit Accounts in the Highway Trust Fund from going bankrupt, keeping them solvent until March 2011. They propose to return the money to the general fund over 10 years.

In a section titled “Downpayment on Reform,” the administration outlines three proposals, including $310 million to help states and metropolitan planning organizations (MPOs) voluntarily improve their project evaluation process, helping them choose worthy projects based on data , preparing them “for improved accountability standards and merit criteria in the long-term reauthorization.”

The second proposal would provide $10 million for “USDOT to develop performance goals and establish guidelines for states and localities on project evaluation.” And in language that sounds similar to the stimulus spending, the third proposal aims to improve the transparency and accountability in transportation spending, to “lay the groundwork for further accountability reforms in the long-term reauthorization.”

Lastly is a section on livable communities and improving regional access:

Livability: developing guidelines for community plans and providing funding for approved projects with special emphasis on convenience of transportation options, reductions in travel times, smart growth, preservation of open space, and more integrated responses to land use and transportation needs.

Chairman Oberstar is still opposed to any extension and it’s worth noting that any 18-month proposal would have to pass through his committee in the House. Read the full memo to Congress below.

ADMINISTRATION PROPOSAL FOR STAGE I REAUTHORIZATION

This document outlines the Administration’s proposal for the first stage of surface transportation reauthorization, consisting of an 18-month plan to address the Highway Trust Fund shortfall and implement discrete, leading-edge capacity-building measures that a long-term reauthorization should expand upon. The following are the Administration’s core principles for this proposed 18-month reauthorization, which should be considered “Stage I” of the broader reauthorization process:

• A general fund transfer to the Highway Trust Fund is necessary to maintain its solvency.
• The general fund transfer should be paid for. The Administration will work with Congress to identify revenue-raising measures that will reimburse the general fund for the transfer over ten years.
• Stage I reauthorization should include State and MPO capacity-building measures. These measures are a “downpayment” on longer-term improvements in data-driven decision making, transparency, and accountability.
• As appropriate, the Stage I reauthorization should include measures to improve regional mobility and access and enhance the livability of all communities.

HIGHWAY TRUST FUND SOLVENCY

Analysis by the Department of Transportation shows the Highway Trust Fund running short of cash in late August or early September of this year. To extend the program 18 months at the baseline funding level will require $18 billion for the highway account and $2 billion for the transit account. Legislation to address the HTF shortfall should pass before August recess to avoid disruptions to state cash management and further strain on state budgets.

The Administration believes this transfer should be repaid to the general fund over the next ten years. A revenue measure that repays the general fund contemporaneously (i.e., over the two year period) is not feasible given the economic situation and the pressing needs of the transportation system. Instead, the Administration would support a range of options, including international tax enforcement proposals the President included in his budget.

DOWNPAYMENT ON REFORM

Although an extension of the HTF is urgent, the Administration believes that this opportunity can be used to put in place a limited set of carefully thought-out reforms that can form the basis for further reforms in a full six-year reauthorization.

Investing for Performance

The Administration strongly supports improving investment decisions at the federal, state, and local levels of government. Establishing performance goals and basing project selection on merit criteria will increase returns to transportation investment, which have fallen precipitously in recent decades. The following are concrete reform proposals with 18-month costs:

Improving state and MPO project evaluation capacity (Cost: $300 million).  The Administration proposes funding to help states and localities build capacity for collection and analysis of data on transportation goals. States and MPOs that choose to participate would be given funding to establish project evaluation infrastructure, including information on usage or ridership, accidents and fatalities, average speeds and travel times, and environmental impacts. This voluntary program would provide participating entities the opportunity to integrate analysis into investment decisions and prepare for improved accountability standards and merit criteria in the long-term reauthorization.

Improving project assessment tools (Cost: $10 million).  As states and localities build informational and analytic capacity, the federal government must work to refine assessment tools and develop standards for cross-modal comparisons of projects. The Administration proposes funding for USDOT to develop performance goals and establish guidelines for states and localities on project evaluation.

Increasing transparency in state and local public reporting (Cost: Low).  The Administration also proposes stronger requirements for tracking and reporting on the projected and actual outcomes of transportation investments that use federal dollars. These requirements would include information on project costs, timelines, and selection process as well as expected and actual outcomes of individual projects. Improved reporting requirements would increase the transparency of transportation spending and improve state and local decision-making. These requirements would also lay the groundwork for further accountability reforms in the long-term reauthorization.

Regional Access and Livability Initiatives

The Administration supports efforts to improve regional access and mobility and enhance the livability of communities. Possible reforms in Stage I reauthorization could include:

• Regional Access: developing guidelines for multimodal regional access plans, establishing local transportation governance standards and best practices, and funding approved multimodal access plans.
• Livability: developing guidelines for community plans and providing funding for approved projects with special emphasis on convenience of transportation options, reductions in travel times, smart growth, preservation of open space, and more integrated responses to land use and transportation needs.