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In Hill event, local leaders make case for federal support for transportation needs

Before a packed room on Capitol Hill, local leaders from three very different communities shared one very specific message with a handful of Congressmen and at least four dozen staffers: If Congress doesn’t act to shore up the nation’s transportation fund before it goes insolvent later this year, their cities and communities would bear the brunt of the pain.

Ways and Means briefing overall

Along with Reps. Richard Hanna (R-NY) and Earl Blumenauer (D-OR), Transportation for America helped to bring local leaders to Washington to talk about what the looming insolvency of the Highway Trust Fund means for their communities. As we’ve noted here, states and local governments stand to lose nearly all access to federal transportation support next year if Congress doesn’t act to shore up the nation’s transportation fund sometime before the end of the summer. (The details of which were explored at length in a presentation by the day’s last panelist, Sarah Puro, Principal Analyst at the Congressional Budget Office.)

In between appearances by Reps. Blumenauer and Hanna, as well as comments from Rep. Jim McDermott of Washington and Rep. Rodney Davis of Illinois, three local officials painted pictures of their ambitious transportation plans, and what the lack of federal investment would mean for them.

Normal, IL, Mayor Chris Koos shared the story of how city leaders revitalized their town’s core — and how federal support was the only way they could make it a reality. (Read that full story here.) He noted that the private sector has since followed through with millions in new investments, but that they were unwilling to invest in Uptown Normal until they knew the public sector was truly committed.

 

Rep. Rodney Davis, a Republican from the 13th District that includes Normal, came up and offered his support for Normal Mayor Chris Koos and expressed pride in this project in his district — a model for how the federal government could support a smart local vision that also had strong local and state funding and support.

Koos and Davis

Rep. Rodney Davis (right) greets Mayor Chris Koos of Normal, Illinois after the Mayor shared the story of the revitalization of Uptown Normal — made possible by a federal TIGER grant.

While Mayor Koos was speaking in one hearing room, Transportation for America director James Corless was telling a different group of more than 20 members of Congress the same story from Normal, Illinois.

He was testifying alongside many of the transportation industry groups in an invitation-only congressional roundtable hosted by the House Committee on Transportation and Infrastructure to discuss the next transportation bill. He told the 20-plus members of Congress there, along with transportation lobbyists and advocacy groups, that because local economies are the heart of the American economy, the federal program should support more local initiatives like Normal’s.

“Normal should be “normal,” not the exception,” Corless said.

While Normal is a small college town, Nashville, Tennessee is a much larger, booming metropolis. They’ve been adding jobs and people over the last ten years, and are expected to add a million more in another 20-plus years.

Marc Hill, Chief Policy Officer of the Nashville Area Chamber of Commerce, explained how the business community and the chamber got together years ago and recognized that congestion threatens that economic prosperity.

“Six years ago, the Chamber began focusing on transit as a top priority — second only to improving public education.”

Marc Hill from the Nashville Chamber of Commerce

Marc Hill from the Nashville Chamber of Commerce

Why? They’ve certainly been inspired by watching and learning from some of their neighbors’ mistakes. “We don’t want to be another Atlanta. We don’t want to start working on transit 10 years after we’re in gridlock,” he said.

The business community is leading the way for making bus-rapid transit a reality in Nashville — and they hope that The Amp’s first line through the center of town is just the first component of what could be a wide-ranging regional bus-rapid transit system, the first of its kind in the South.

But, “there’s simply no way a local community can pull off something like this without a federal partnership,” he said. If the trust fund goes belly up and the federal contribution is curtailed for next year, Tennessee could be out $900 million and Nashville would lose $40 million.

Down in Florida, Tampa Bay is home to the 15th largest port in the nation and the closest to the Panama Canal in sea-miles. Charlie Hunsicker, director of the Manatee County Parks and Natural Resources Dept and also speaking on behalf of the Manatee Chamber of Commerce, urged the Ways and Means members to consider freight as they mull how to rescue the trust fund from insolvency.

“Ports constitute the most important first mile, or last mile, in world trade,” he said.

Charlie Hunsicker

Charlie Hunsicker, Director of the Manatee County Parks and Natural Resources Department.

The recurring theme today was clear: No matter how motivated and inspired, the American public and business community cannot do this alone.

Nashville is working on their local funding sources for The Amp, and hoping for the feds to support this region that’s “an economic driver, not just in Tennessee, but for the mid-South,” as Marc Hill put it. “There’s no lack of will locally to invest to be a full partner, a majority partner, but we absolutely can’t do it without that federal support.”

Messages and stories like these will continue to flow into Washington, DC from cities and towns and counties and districts all across the country.

But the ball is in Congress’ court, and especially the Ways and Means Committee that’s responsible for funding a transportation bill. Without a solution to the funding crisis, writing great new transportation policies will be like crafting a beautiful saddle without the horse.

These local leaders are counting on Congress to come through for them.

Photos from the event

Sarah Puro of the CBO gives a presentation at the briefing organized by Reps. Blumenauer and Hanna, with Transportation for America. 2/26/14

Sarah Puro of the CBO gives a presentation at the briefing organized by Reps. Blumenauer and Hanna, with Transportation for America. 2/26/14

Rep. Richard Hanna speaking at the briefing organized by his office and Rep. Blumenauer, with Transportation for America. 2/26/14

Rep. Richard Hanna speaking at the briefing organized by his office and Rep. Blumenauer, with Transportation for America. 2/26/14

Rep. Earl Blumenauer speaking at the briefing organized by his office and Rep. and Hanna, with Transportation for America. 2/26/14

Rep. Earl Blumenauer speaking at the briefing organized by his office and Rep. Hanna, with Transportation for America. 2/26/14

Rep. Jim McDermott speaking at the briefing organized by Reps. Blumenauer and Hanna, with Transportation for America. 2/26/14

Rep. Jim McDermott stopped in to say a few words at the briefing organized by Reps. Blumenauer and Hanna, with Transportation for America. 2/26/14

Rep. Rodney Davis (R-IL) at the briefing organized by Reps. Blumenauer and Hanna, with Transportation for America. 2/26/14

Rep. Rodney Davis (R-IL) at the briefing organized by Reps. Blumenauer and Hanna, with Transportation for America. 2/26/14

JRS at Ways and Means Briefing

Transportation for America’s John Robert Smith — himself a former mayor — kicks off the briefing with a few remarks.

 

CBO: Highway Trust Fund hole even deeper than expected

New revenue projections for the Highway Trust Fund released this week from the Congressional Budget Office (CBO) show that, not only is the nation’s transportation fund going in the red sooner than expected, but the gap to maintain promised funding levels has increased by about $5 billion.

On Tuesday, CBO released its biannual projections of the Highway Trust Fund as part of their much larger “Budget and Economic Outlook: 2014 to 2024.”

The gloomy news from the CBO report is twofold: (1) The “transportation fiscal cliff” is likely to come before the end of September; and (2) fully funding MAP-21 for another year after it expires this September is projected to now require $19 billion — $5 billion more than originally thought.

Though the news from CBO is worse than many in DC expected, the bottom line hasn’t changed: If Congress doesn’t act sometime in the next eight months, nearly all of the federal transportation program will be halted in fiscal year 2015.

CBO Highway Trust fund annual shortfall projections Feb 2014

Specifically, the CBO report estimates the Highway Account of the Trust Fund will run out of cash to pay for day-to-day operations before the expiration of MAP-21 on September 30th. This is due in part to the fact that the Federal Highway Administration (FHWA) is supposed to reimburse states every business day, but gas tax receipts are deposited in the Trust Fund only twice a month. The uncertainty between gas tax receipts and cash outlays will require FHWA to slow payments to states and/or pay smaller sums should Congress not address the “transportation fiscal cliff” in a timely manner.

These forced actions by FHWA will result in states and local communities stopping investments in transportation projects that are critical to their long-term economic development. As a result, communities across the country that are raising their own taxes and hoping for a strong federal partner to support their efforts might have to shelve their ambitious plans.

Looking past the expiration of MAP-21 this September and into the future, the CBO report also gives us a sobering picture of just how much additional transportation revenue is needed to move forward. To fund a six-year authorization bill at the same spending levels as MAP-21, the trust fund needs an additional $100 billion in tax receipts or, however unlikely, transfers from the general fund for the fiscal period from 2015 to 2020. To fund a two-year bill similar to MAP-21 would require an additional $35 billion more than the trust fund currently brings in.

This picture won’t magically get any better, either. Inflation marches on and cars will continue using less and less gas. The roughly $39 billion of incoming gas tax revenues of today aren’t projected to grow a dime ten years from now, and many intelligent people think this projection could be too rosy, considering that the previously mentioned shifts in fuel efficiency and driving habits are expected to persist.

We absolutely must invest more money in America’s transportation system, and Transportation for America’s alliance of elected, business and civic leaders are working to move Congress toward timely action on this vital issue. Please read Transportation for America’s plan for an increase in federal transportation funding that rewards smart, locally driven transportation projects and guarantees local communities get the money they need to fix an aging system while also building the new infrastructure their economies depend on.