SECTION: CAPITOL HILL HEARING TESTIMONY

LENGTH: 2510 words

COMMITTEE: HOUSE TRANSPORTATION AND INFRASTRUCTURE

HEADLINE: TRANSIT SYSTEM BENEFITS

TESTIMONY-BY: MR. WILLIAM MILLAR, PRESIDENT

AFFILIATION: AMERICAN PUBLIC TRANSPORTATION ASSOCIATION

BODY:
CORRECTED COPY

TESTIMONY OF THE AMERICAN PUBLIC TRANSPORTATION ASSOCIATION BEFORE THE HIGHWAYS AND TRANSIT SUBCOMMITTEE OF

THE HOUSE TRANSPORTATION AND INFRASTRUCTURE COMMITTEE ON HOW PUBLIC TRANSPORTATION SERVES AND BENEFITS U.S. COMMUNITIES

April 17, 2002

SUBMITTED BY Mr. William Millar President American Public Transportation Association

APTA is a nonprofit international association of over 1,400 public and private member organizations including transit systems and commuter rail operators; planning, design, construction and finance firms; product and service providers; academic institutions; transit associations and state departments of transportation. APTA members serve the public interest by providing safe, efficient and economical transit services and products. Over ninety percent of persons using public transportation in the United States and Canada are served by APTA members.

INTRODUCTION

The American Public Transportation Association (APTA) appreciates the opportunity to testify on how public transportation serves and benefits U.S. communities.

APTA's 1,400 public and private member organizations serve the public by providing safe, efficient, and economical public transportation service, and by working to ensure that those services and products support national energy, environmental, community, and economic goals. APTA member organizations include transit systems and commuter railroads; design, construction, and finance firms; product and service providers; academic institutions; and state associations and departments of transportation. More than ninety percent of the people who use public transportation in the U.S. and Canada are served by APTA member systems. Public Transportation and its Rebirth in America

Through improved mobility, safety, security, economic opportunity, and environmental quality, public transportation benefits every segment of American society-individuals, families, businesses, industries, and communities-and supports important national goals and policies. Public transportation is taking on an increasingly important role in America's multimodal transportation network, and federal investment is critical to fulfilling that role. During the past five years, increased investment in the federal transit program, authorized and guaranteed under the Transportation Equity Act for the 21st Century (TEA 21), has been the key to the public transportation industry's ability to address mobility issues around the country. We appreciate what the legislation, and its reliable and predictable annual funding, has meant for our industry and the millions of Americans who rely on our services. Whether it's expanded personal mobility choices or a myriad economic and commercial returns or cleaner air, all Americans receive the benefits of public transportation investment.

Public Transportation Ridership is at Record Levels

Of all TEA 21's tangible results, none is more evident than its impact on transit ridership. More and more people are choosing to use public transportation every day, and the numbers speak for themselves. Thanks in large part to Congress' investment in the federal transit program, public transportation is experiencing a renaissance. Americans used public transportation a record 9.5 billion times in 2001, and transit ridership has grown 23% since 1995. This represents the highest level in more than 40 years. Over the last six years, transit use has grown faster than the population (8.4%), highway use (14.7%), and domestic air travel (12.5%; 19% prior to 9?11?01). Although the 2001 transit ridership numbers will not be finalized until later this month, preliminary indications are that, despite the economic downturn, transit ridership continued its upward climb with 2% growth over 2000 levels.

This ridership growth can be tied to TEA 21, which has brought specific improvements to transit infrastructure. For example, since 1997 the average age of buses has fallen from 8.7 years to 6.9 years; of light rail vehicles, from 21.8 years to 17.9 years; and of vanpool vehicles, from 3.3 years to 2.3 years. And communities around the country are responding. There have been favorable referenda on transit in California; Pierce County, Washington; Salt Lake City, Utah; Seattle, Washington; Toledo, Ohio; Providence, Rhode Island; King County, Washington; Houston, Texas; Glendale, Arizona; and in Portage County, Ohio, and on and on around the country.

The nation's mayors also recognize the growing demand for public transportation. In February, at a meeting of more than 300 mayors from across the country, a survey was released that showed that 80 percent of respondents agreed that the idea of building light rail is a viable alternative to driving.

INVESTMENT IN PUBLIC TRANSPORTATION SHOWS RESULTS

The record ridership increases are a direct result of the increased federal investment in transit. TEA 21 authorized $41 billion for public transportation, and guaranteed $36 billion, a significant increase over the previous funding. The transit funding guarantees have been instrumental in ensuring that transit funding has increased as intended by TEA 21. Since the federal transit program is now primarily a capital investment program, the predictability and reliability of guaranteed funding has been a critical asset for transit agencies in developing long- term-capital plans. It lets them operate in a businesslike fashion, and the private markets are much more interested in public/private innovative investment plans with an assured level of federal funding.

The additional TEA 21 transit and highway investments have been put to work wisely and expeditiously on an existing array of sophisticated transportation improvements. Funds have been allocated nationwide for bus capital; modernization, upgrade, and replacement of capital facilities; rural public transportation; and specialized services for elderly persons and people with disabilities. Nearly 200 new or expanded rail or bus or rapid transit projects were authorized under TEA 21 for 88 areas in more than 40 states. THE BENEFITS OF PUBLIC TRANSPORTATION

To better demonstrate the many benefits of transit, APTA and Cambridge Systematics published "The Benefits of Public Transportation: An Overview," a report which we are pleased to submit for the record. Let me highlight the report's findings.

Links to National Goals and Policies

The report identifies transit's links to national goals and policies. Public transportation helps lead the nation toward its goals and policies of protecting the environment, conserving energy, and providing for the health, safety, and security of its citizens.

Emissions from road vehicles are the largest contributors to smog. High smog levels result in some 159,000 trips to emergency rooms, 53,000 hospital admissions, and 6,000,000 asthma attacks each summer. The good news is that transit use can help reduce the gases that cause smog. Public transportation saves 1,500 million gallons in auto fuel consumption each year. In fact, for every 10,000 solo commuters who leave their cars at home and commute on existing transit for one year, the nation reduces fuel consumption by 2.7 million gallons.

Transit systems provide safe and secure mobility. The National Safety Council estimates that riding the bus is over 170 times safer than automobile travel. If the nation's roadway users had the same accident rate as buses, 21,000 motorist lives would be saved annually in collision accidents alone. New visual, voice, and data communications systems also provide more security than roadways. In fact, many transit systems now formally serve as safe havens for children and students moving throughout communities in the U.S.

Increased Resiliency and Redundancy - Helping in Emergencies

Security has been a priority for public transportation operators for many years. One of the best illustrations of this occurred during the September 11, 2001 terrorist attacks. On September 11, citizens in New York and Washington relied on public transportation as the mode of choice to evacuate from the urban core. In New York, millions of commuters were evacuated quickly and without injury on the area buses, subways, commuter trains, and ferries. Here in Washington, the Washington Metropolitan Area Transit Authority proved its value as a regional evacuation system running the equivalent of two rush hours back-to-back and moving thousands of citizens out of harm's way. This same story was true all across the country as transit systems helped evacuate citizens from closed airports and center cites. We have a report in this regard, "America Under Threat: Transit Responds to Terrorism," which we are pleased to submit for the record.

The availability of public transportation has also been critical in times of natural disaster and emergency. Public transportation systems in North Carolina transported volunteers, evacuated residents, and raised funds across the state for victims of Hurricane Floyd in 1999. In Flint, Michigan, transit helped evacuate a senior citizens' complex following a gas explosion. In 1998, public transportation brought firefighters to wildfires in Florida and evacuated tornado victims in Nashville, Tennessee. Following the 1989 Loma Prieta earthquake, San Francisco's BART system supported commuters and the regional economy after the collapse and reconstruction of major road segments.

Benefits for Individuals and Families

In community after community, public transportation is making a real difference in the daily lives of individuals and households. Public transportation takes cars off the road, reducing road congestion and travel time for commuters. It is estimated that transit amounts to 60 cars for a full bus, 12 cars for a full van, and up to 200 cars for a full commuter rail car. Urban commuters spent an average of 36 hours-nearly 5 work days-in traffic delays in 1999. In the 68 urban areas it studied, the Texas Transportation Institute found that one-third of daily travel occurs under congested conditions.

Public transportation enhances economic opportunity by lowering household expenses and freeing up more income for other needs. For each dollar earned, the average household spends 18 cents on transportation, 98% of which is for buying, maintaining, and operating cars; the largest source of household debt after mortgages. In contrast, riders on the 80-mile Altamont Commuter Express train save over $2,500 annually- $2,688 by train compared to $5,282 by car. Americans living in transit-intensive metropolitan areas save $22 billion annually in transportation costs-savings enough to buy four-year public college educations for half a million students. Savings add up for everyone: every $10 million invested in public transportation saves more than $15 million annually, for both highway and transit users.

Benefits to Business and Industry

More than ever before, public transportation is an essential element for maintaining a vibrant business community and economic climate. U.S. businesses benefit through direct revenues, workforce improvements, and other related savings. Every $10 million invested in transit capital projects yields $30 million in business sales, and the same investment in transit operations produces $32 million. Employers are taking advantage of the expanded labor pool that public transportation provides. Employers are choosing to house their operations in transit- friendly locations, like BellSouth in Atlanta, which is consolidating all of its suburban offices into downtown locations, close to MARTA.

Traffic congestion causes an annual loss of $40 billion to U.S. businesses. Without transit, that loss would rise by an additional $14.8 billion per year. Businesses tied to public transportation are experiencing more employee reliability and less absenteeism and turnover. They also save on employee time lost to delay, accident, and injury on the road. In 2000, there were 23.8 million accidents involving passenger cars, light trucks, and SUVs; motor vehicle injuries resulted in the loss of $71.5 billion in wages and productivity. In addition, businesses in transit-intensive areas save on land required for parking and its associated costs.

Benefits for Communities and Local Governments

Increased congestion on the roadways threatens the economic future and the quality of life for urban residents. According to a recent study, public transportation use reduces roadway-related costs-traffic enforcement, emergency services, right-of-way acquisition-by an estimated $1 billion to $1.7 billion per year. The $32 billion U.S. public transportation industry generates up to a 6-to-1 net return on investment-which translates into higher revenues for cities and states. Transit means jobs, too. Every $10 million invested in public transportation capital projects generates over 300 jobs, and the same amount invested in operations generates 600 jobs.

APTA has produced a publication, "Public Transportation Means Business," which highlights the significant economic benefits of transit investment. The report illustrates how investment in transit sparks an economic chain reaction that generates business activity, creates jobs, boosts property values and tax earnings, maximizes transportation spending, and gets people to work. We would also like to submit that report for the record.

Benefits for Public Programs and Community Services

Public transportation produces savings in public programs such as education, human services, and healthcare. Transit is helping the education system, as well, by expanding access and reducing auto- related expenditures for students of all ages. Transit agencies and educational institutions-in Madison, Wisconsin; Wakegan, Illinois; and Flint, Michigan, for example-have established cost- saving partnerships. By the year 2020, 40% of the U.S. population will be senior citizens, many of whom will be unable to drive. Meeting the mobility needs of America's growing senior population, transit serves as a lifeline to family, friends, and a changing society. Transportation options are a vital link for citizens with disabilities, and the public transportation industry, with more than 86% of its buses fully accessible, is proud to serve in that capacity.

The availability of public transportation can reduce costs associated with healthcare, like duplicated paratransit, EMS, and ambulance services. In Dade County, Florida, the Medicaid Metropass program gives Medicaid clients a pass for unlimited travel for $1 a month to meet their medical and non-medical needs. The program saves the Dade County Medicaid agency over $600,000 each month-a total savings of $60 million since its inception in 1993. This successful program is a model for other communities, and serves about 5,000 citizens each month, with nearly 63,000 customers in fiscal year 2001.



LOAD-DATE: April 18, 2002