The major debate in Congress at this moment is funding.

March 31, 2003 - This week Congress is busy determining funding levels in the non-binding but politically important Budget Resolution, which will provide the authorizing committees parameters for how much they will be able to spend in the new transportation bill.

The House Transportation & Infrastructure Committee leadership has taken a stand for a $380 billion authorization. The Senate committees have called for increased funding, but without a specific funding amount. Last week, 65 Senators signed on to a letter requesting an increase in funding for public transportation.

The Bush Administration has stated very clearly that it opposes any increase in taxes to grow the highway and transit programs at the level being proposed by the congressional committees. The Administration proposal for reauthorization is now being circulated among government agencies, and should be released in the next few weeks.

We do know that the Administration (based on their FY 2004 budget proposal) intends to shift the local match for New Starts projects to 50%, is interested in establishing greater financial accountability on major transportation projects, and is interested in streamlining environmental permitting processes to speed up the construction of major transportation projects. As a rule the Administration is also going to turn most DOT discretionary programs into formula grants to the states in order to discourage congressional earmarking. Transit funding is kept more or less level, but there is an increase in funding for rural transit programs.

Among programs that serve transit-dependent populations, the Administration will likely keep Job Access/ Reverse Commute (JARC) and 5310 (Elderly and Disabled) funding at the same level, and create a new program called the New Freedoms Initiative. The Administration has signaled its interest in better coordinating these programs, and applying the JARC planning process to all three programs.

Congress is in the final stages of developing a list of special projects to be included in the next federal funding bill

The political reality of this big funding framework bill is that it passes only when each member has an investment in the bill and the list of special projects helps to achieve this. The rumor is that this approach could mean that Chairman Young (R-Alaska) may need as much as $375 billion in revenues to finance a transportation bill that would be the largest public works spending measure in modern times, and a whopping 60 percent increase over the last highway bill that was itself a big-budget legend. Now the policy debate on the direction of the bill begins.

Of concern is:
The administration's proposal is to reduce the federal portion for some transit programs from 80% to 50%, while maintaining the current rate for highways at 80%. This proposal makes it more costly to choose transit investment and places the incentives in the wrong direction.

A move is on to "streamline" environmental regulations, including the requirements for public involvement and consideration of a project's impact on the community in which it is placed. This could substantially reverse the healthy direction of more open debate about how transportation money is invested in a community and who benefits from this investment.

Resources

Both the Transportation Equity Network (http://www.transportationequity.org/ten_platform.shtml) and Surface Transportation Policy Project (http://www.transact.org) have developed a platform of good ideas for reauthorization.

Texas Roster:

House Transportation and Infrastructure Committee: Cong. Nick Lampson, Cong. Eddie Bernice Johnson, and Cong. Michael Burgess

Senate Banking, Housing, and Urban Affairs: Senator Cornyn & Senate Appropriations; Commerce, Science and Transportation: Senator Kay Bailey Hutchison

JTA Leads Texas Effort to Gather Endorsements for the New Transportation Charter

The Surface Transportation Policy Project, one of JTA's national partners, has developed their Blueprint for Reauthorization of TEA-21. TEA-21, the nation's surface transportation law, will expire on September 30, 2003. This law governs how Highway Trust Fund money, mostly federal gas tax revenues, is spent - roughly $38 billion per year. The law both sets policy for how the money is spent, funding levels for spending categories such as National Highways, Surface transportation, Transit, CMAQ, Bridges, Enhancements, and Safety. About 5% of ISTEA and TEA-21 funds were earmarked for specific projects. Traditionally, the U.S. DOT prepares a proposal which is then significantly revamped by Congress. Thus the focus of STPP's TEA-21 renewal campaign will be on the three Congressional committees that will author the bill.

At least 60 Texas organizations participated in helping to develop this via surveys, going to a regional workshop in Denver, or just giving the staff feedback.

To view a list of the endorsers, see http://www.antc.net/charter/signers.asp.