SECTION: CAPITOL HILL HEARING TESTIMONY

LENGTH: 3180 words

COMMITTEE: HOUSE GOVERNMENT REFORM

SUBCOMMITTEE: DISTRICT OF COLUMBIA

HEADLINE: MASS TRANSIT IN THE DC METRO AREA

TESTIMONY-BY: JENNIFER L. DORN, ADMINISTRATOR

AFFILIATION: FEDERAL TRANSIT ADMINISTRATION

BODY:
Statement of Jennifer L. Dorn Administrator Federal Transit Administration

Before the House Committee on Government Reform Subcommittee on the District of Columbia

September 21, 2001

Madam Chairman and Members of the Subcommittee, good morning. Thank you for the opportunity to testify on behalf of the Federal Transit Administration regarding the management, operational and budget challenges facing the Washington Metropolitan Area Transit Authority and the accessibility of the WMATA system to customers with disabilities. You have asked me to provide a Federal perspective on the state of the public transportation industry, the challenges and opportunities it faces over the next several years as well as how the Washington Metropolitan Area Transit Authority fits into this overall picture.

First, I would like to say a word about the terrible events of last week. On Tuesday, September 11, 2001, terrorists struck two of the strongest symbols of our democratic society - the World Trade Center in New York and the Pentagon, just across the river from the very building in which we sit today. We all watched in horror as the New York City skyline lost its symbol of commerce and the Pentagon was engulfed in flames. And just when we wondered how to bear the magnitude of these tragedies, we learned of the tragic plane crash in Pennsylvania. September 11th was a day that will forever change America. It was also a day that will change transportation in our country.

I would like to spend just a few moments to share with you how public transportation systems across the country responded to the aftermath of those horrific events.

Grounded some 3,000 miles away in Los Angeles, I spoke with Peter Kalikow, chairman of the New York Metro Transit Authority, 36 hours after the crash. He said to me, "If you were to have told me that 24 hours after the World Trade Center building had collapsed, New York City transit would be almost completely operational in the rest of the city, I would not have believed it."

We all saw the images of devastation on our television screens. It is a tribute to the transit leaders and workers in New York, and the thousands of people who helped, that mobility and access in New York City was restored within days. By Monday, commuters returning to work in New York City had several transit options, including frequent service on PATH trains, the New York Waterway ferry and buses.

Elsewhere in the country, transit systems took steps to further ensure the public's safety. In Boston, the Massachusetts Bay Transportation Authority began running special observation trains, staffed by their own police, throughout all of the subway tunnels to check for bombs. Security was immediately increased and employees were put on a heightened state of alert. At SEPTA in Pennsylvania, in coordination between state and local police, rail transit tracks were swept for several nights in a row and police were stationed on board the first trains out in the morning. The Maryland Mass Transit Administration initiated their terrorism plan. The Chicago Transit Authority significantly beefed up its security. In Los Angeles, the Metropolitan Transportation Authority activated its Emergency Operations Center. Guards stood at each entrance and exit of subway portals in San Francisco.

Here in Washington, D.C., Metrorail continued to operate effectively, while most of the region's ground transportation and all of its air transport were either gridlocked or halted.

The national picture of public transportation today is indeed one of very good news. Public transportation is a true success story. In community after community we see greater ridership, increasingly efficient operations and key public support for its services.It is also due to some very hard work by transit managers and employees, and to the investment of substantial resources by local and state governments, as well as the Federal government. Transit agencies are also increasing their use of innovative marketing techniques and other modern business management practices.

Public transportation has not yet reached its full potential, however. It is poised for even greater growth and improvement - as it must be. There has never been a more important time for communities to ensure public mobility by expanding choice and enhancing accessibility through public transportation. While there is more to be done, transit has made major strides in promoting access to transportation for people with disabilities, including access to jobs.In order to enhance these goals, the Administration has requested $145 million in fiscal year 2002 for its New Freedom Initiative.

As has been noted here today, WMATA has reported record ridership in each recent month. Metrorail ridership last month was more than 16 million for the third consecutive month - an 8.8 per cent increase from last year and a 31 per cent increase from five years ago. By comparison, I recently saw a report from the American Public

Transportation Association that indicated public transportation ridership up 2.8 per cent in the first quarter of this year over last year and 19.9 per cent over the same quarter five years ago.

As good as all this is -- and in part because of these successes - Washington and the nation face great transit challenges. One of the biggest challenges will be to secure the resources necessary to meet the increasing demand for transit and to ensure that the transit infrastructure is up to the task. The Department of Transportation's biannual report on the conditions and performance of the nation's surface transportation systems, released last year, noted that record levels of Federal highway and transit investment -$34.5 billion in 2000 alone -- have greatly improved safety and enhanced system conditions, but further progress is necessary.

The estimated average annual total capital investment from all sources (Federal, state and local) required to simply maintain the current conditions and performance of transit systems is $10.8 billion. Capital spending, again from all sources, on transit nationally would need to increase 28 percent from the 1999 level of $8.4 billion to reach the $10.8 billion projected cost to maintain transit systems, although over the life of TEA- 21, this difference has declined and is expected to decline further. If we are to improve the conditions and performance of transit systems by eliminating deficiencies, however, a total of $16 billion would be needed annually.

Some of our transit systems are 100 years old. Some are brand new. Some, like the Washington area Metro system, are still under construction, studying expansion to meet increasing demand, while undertaking very large capital maintenance and rehabilitation programs. Regardless of age, every bus, every heavy rail car, every light rail and paratransit vehicle - and the shops and yards that maintain them -- need investment in their upkeep every day so that safe, efficient and convenient transportation is available to the people of America.

How is the nation and how are transit agencies around the country coping with these challenges? Congress has provided record levels of transportation investment in the Transportation Equity Act for the 21St Century, and, as a result, we expect to see a narrowing of the gap between what is needed and what is provided, thus addressing both existing and potential need. One relatively new way for our communities to address their transit demands is to take advantage of the flexibility provided by ISTEA and now TEA21 in using surface transportation funds for locally determined priorities. I am pleased to note nationally nearly $1.6 billion was "flexed" in fiscal year 2000, as well as $1.291 billion so far in fiscal 2001 with over $7 billion flexed since the start of ISTEA. In fact, WMATA received about $13.3 million in flexed funding in fiscal year 2000 and $25.6 million so far in 2001.

Congress has also provided a range of innovative financing tools, which, I am pleased to report, our nation's transit providers take advantage of in order to meet their need for funds. Here, WMATA has also been a leader. Indeed, the recent GAO report commends the agency for its use of innovative financing. WMATA was the first transit agency to receive a loan guarantee of $600 million under the Transportation Infrastratucture Finance and Innovation Act (TIFIA), earlier this year. This loan guarantee will help to expedite WMATA's rehabilitation plans over the next several years.

Perhaps one of the most important things for transit agencies to accomplish in order to meet these challenges is to assure stable and reliable state and local sources of funding for capital and operating needs. Many agencies, such as the Bay Area Rapid Transit District (BART), have dedicated sources of funding. State funds dedicated to BART include general taxes, transit dedicated taxes, and a variety of statewide bond sources that are typically specific to an activity, such as construction, vehicle acquisition, or rehabilitation.Local funding sources include a half-cent sales tax in the three county district, property assessments, and other locally programmed funds. The Metropolitan Atlanta Regional Transportation Authority (MARTA) receives a one- cent sales tax from Fulton and DeKalb Counties of which no more than 50 percent can be used for operating assistance. In contrast, and as the GAO report highlights, WMATA has no directly dedicated funds, but relies on federal sources for capital assistance and state and local jurisdictions for both capital and operating funds.

The most important lesson here is for transit agencies to develop an understanding of their needs and develop plans to deal with them. FTA's financial planning guidance dealing with how we would review the financial plans which we require for candidate.

New Starts projects call for a twenty year capital and operating plan which accounts for the costs of operating the transit system, assuring that the capital stock is maintained and upgraded, and providing resources for the New Starts investment. The plan is to identify the funding sources already available, and any additional sources that would be needed to bring the plan in balance. Our guidance expects the plan to be complete and assumptions well supported.While this guidance applies specifically to New Starts projects, the principles apply just as well to any transit agency project.

While FTA does not specify particular measures to be used in assessing local performance, we are bringing service quality measures, such as wait time, system speed, and reliability, into our definitions of transit performance used in FTA's report to Congress on Transit Conditions and Performance. We are also developing a better understanding of the benefits that transit produces, by addressing the characteristics of transit users and the kinds (and value) of the trips they are making. Our Transit Performance Monitoring System, now under development, in cooperation with the American Public Transportation Association (APTA), is designed to provide better information in these areas. In addition, we are now in the process of redesigning our basic source of information about transit, the National Transit Database; to better reflect a broader range of measures of transit cost, use, and benefits. We continue to look at a variety of service quality factors in our reviews of transit agencies' paratransit transit service and are addressing questions of transit accessibility to persons with disabilities in the performance goals in FTA's Strategic Plan. Transit agencies all across the country are developing customer-based service standards and doing surveys of existing (and potential) customers. Transit agencies are also looking to broaden their definition of performance to be more customer oriented.

Now let me address FTA's role in overseeing transit agencies in general and WMATA in particular. FTA's primary role is to provide financial and technical assistance. But we also believe that we should work to assure that the funds provided are used as intended. To achieve this latter goal, my Agency undertakes a range of oversight activities focusing on the grantees' effectiveness. I believe that FTA has made significant strides in improving our oversight role in order to be careful stewards of the Federal funds we provide. The General Accounting Office has testified "FTA has improved the quality of the federal grants oversight program since the early 1990's ... for example, FTA improved the guidance and training provided both to its staff and all grantees and developed standardized oversight procedures. FTA has also established a process to target its limited oversight resources. In addition, our ongoing work shows that FTA is improving its oversight of grantees with large-dollar transit projects." However, FTA recognizes its continuing management and oversight challenges, particularly in the New Starts program area.

We have raised the bar on accountability in use of federal transit assistance. WMATA, like other transit agencies, is being reviewed more often and more carefully, and being asked to respond more forcefully. In our view, WMATA, like most agencies, is doing a good job in using the funds we provide.

Briefly, I would like to provide an overview of how we review transit agencies' compliance with FTA requirements. The main focus of this process is in our Triennial Review. However, FTA also conducts other oversight reviews including financial management reviews, project management oversight, and reviews of compliance with current regulations and guidance on drug and alcohol testing, procurement, and civil rights. I should note again that, to date, our oversight of WMATA's federally funded activities shows no major deficiencies in these areas.In addition, and of particular interest to the subcommittee at this hearing, is WMATA's compliance with the Americans with Disabilities Act of 1990 (ADA).

FTA also ensures that grantees' activities are conducted in accordance with Federal Civil Rights requirements for non- discriminatory use of Federal funds by recipients of FTA assistance, including their sub-recipients and contractors. Nondiscrimination is ensured through oversight of grantees' implementation of required civil rights statutes, regulations and policy. Compliance reviews and assessments are conducted and complaints from the public are addressed to determine if the grantee's efforts are in compliance with Title VI of the Civil Rights Act of 1964 (including aspects of Environmental Justice), Equal Employment Opportunity (EEO), Disadvantaged Business Enterprise (DBE) programs, the ADA, and section 504 of the Rehabilitation Act.

In particular, FTA continues to monitor the implementation of the ADA to ensure that persons with disabilities have equal access to mass transit services, including those of WMATA, as required by law. FTA oversight concentrates on three primary areas: the provision of ADA Complementary Paratransit Service, the accessibility of the fixed route service, and the accessibility of rail service as required for existing designated key stations, newly built stations and those undergoing major alterations. In addition to the triennial review, and other oversight activities, we also investigate complaints from riders regarding the ADA. When FTA identifies a deficiency, it is our experience that the transit agency will voluntarily correct the problem.

The provision of ADA complementary paratransit continues to be a challenge for WMATA, as it has been for the industry at large. For example, there have been recent news articles highlighting complaints about Metro Access, WMATA's ADA complimentary paratransit service, involving late pickups, excessive trip lengths, overscheduling, improperly trained drivers, and inadequate telephone capacity. Be assured that FTA understands that its grantees must provide transportation services to people with disabilities as required in statute and regulation and we seek to ensure that these obligations are met through our continuing oversight activities of WMATA and other transit operators throughout the nation.

That being said, FTA acknowledges WMATA's efforts to provide accessible transportation for persons with disabilities. They, like most other transit providers in this nation, continue to find ways to meet the requirements of the law. For example, following a series of complaints about excessive gaps between the platform and the train door, which caused accessibility difficulties for wheelchair users, WMATA installed rubber gap reducers to bridge those gaps.In addition, to ensure safe accessibility to visually impaired riders, FTA worked with WMATA to install truncated domes along the platform edges in its key rail stations. And, as WMATA states, all 762 its rail cars are accessible, over 1,200 of its 1,445 buses are equipped with lifts or ramps, and all 83 of its rail stations have elevators. While WMATA has had difficulty with maintaining elevators and escalators, they are addressing all of these issues in a comprehensive manner through their elevator renovation project, to be completed in 2002.

WMATA faces the same challenges as virtually all of our grantees in major metropolitan areas, such as increasing demand for transit, the need to keep up with the costs of maintaining the infrastructure, finding sources of funding to handle these needs, and assuring that customers are happy. Operating in the nation's capital, WMATA faces the challenge of dealing with the Federal government as the single largest employer in the area. In some ways, however, this is easier than operating in markets with many smaller employers. For example, all Federal agencies in the National Capital Area provide the maximum tax-free transit benefit (now $65 per month) in addition to regular pay. While adjusting to additional ridership presents a short-term challenge, the long-term benefit of having the largest employer subsidize transit ridership is a positive development for the entire region.

Madam Chairman, I thank the subcommittee again for the opportunity to be here today to talk about the state of transit nationally and how WMATA fits into this picture.

I am particularly pleased to do so at a time in which transit agencies all across the country are reporting impressive ridership gains, when local, state, and most particularly Federal support for transit is at an all-time high, and when transit agencies across the country are becoming better able to serve their customers. The events of last week present new challenges and new opportunities for public transportation.I am confident that we will meet those challenges, and will emerge with a public transportation system that is even stronger, safer, and more accessible to the people of this great country. I look forward to answering any questions you might have.



LOAD-DATE: September 24, 2001