Copyright 2002 eMediaMillWorks, Inc.
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Federal Document Clearing House
Congressional Testimony
April 17, 2002 Wednesday
SECTION: CAPITOL HILL HEARING TESTIMONY
LENGTH: 3618 words
COMMITTEE:
HOUSE TRANSPORTATION
HEADLINE: HOW
TRANSIT SERVES AND BENEFITS U.S COMMUNITIES
TESTIMONY-BY: JENNIFER L. DORN, FEDERAL TRANSIT
ADMINISTRATOR
AFFILIATION: UNITED STATES DEPARTMENT OF
TRANSPORTATION
BODY: STATEMENT OF
JENNIFER
L. DORN FEDERAL TRANSIT ADMINISTRATOR UNITED STATES DEPARTMENT OF TRANSPORTATION
Before the SUBCOMMITTEE ON
HIGHWAYS AND TRANSIT Of the
COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE UNITED STATES HOUSE OF
REPRESENTATIVES
April 17, 2002
Mr. Chairman and Members of the
Subcommittee, thank you for this opportunity to talk with you about the
importance of stable
funding for public transportation in
America's communities. As we begin to discuss reauthorization of the Federal
transit programs under the Transportation Equity Act for the 21st Century (TEA-
21), I cannot think of a more important issue than the relationship between the
quality, availability, and accessibility of public transportation services in
our communities and the quality of life and economic vitality of our
communities. Public transportation benefits people who choose to ride it, and it
benefits those who have no choice; even people who choose not to ride public
transportation benefit from the more vibrant, healthy community that it fosters.
In recent years, transit has experienced the highest percentage of
ridership growth among all modes of surface transportation, growing over 28
percent between 1993 and 2001. Last year, people rode our Nation's public
transportation systems 9.6 billion times -- traveling to and from work, medical
appointments, school, and social events. Nearly two-thirds of these trips were
on buses. While most public transportation trips continue to occur in major
metropolitan areas, public transportation is becoming increasingly important in
smaller urban and rural areas, as well. Among transit agencies that receive
Section 5311 funds, the number of passenger trips reached an estimated 154
million in 2000, an increase of 62 percent since 1994. During the same period,
miles traveled increased by an estimated 93 percent, meaning that people are not
only taking public transportation more often, but also for longer distances.
Not coincidentally, these increases in ridership have occurred during a
period when the condition of our Nation's public transportation assets improved
markedly and the availability of public transportation increased substantially.
Why have transit ridership and availability grown so much? The answer, I
believe, can be found in the fact that public transportation connects
communities - and communities are recognizing and capitalizing on the benefits
of more efficient, comfortable, and effective public transportation systems.
This recognition has spurred unprecedented levels of investment in public
transportation. In fact, the total capital investment in public transportation,
including State, local and Federal funds, has increased by nearly 90 percent
over the last ten years (1991 to 2000). The role of the Federal Government has
been stable during this period, accounting for approximately 50 percent of
capital investment in transit.
In 1991, the Intermodal Surface
Transportation Efficiency Act (ISTEA) introduced the flexibility that allowed
Federal funds to be used for local priorities. In 1998, TEA-21 established a
level of
funding stability that has facilitated unprecedented
investment and growth. Dependable levels of
funding - for both
formula funds and full
funding grant agreements - have improved
the ability of transit agencies to finance, plan, and execute projects.
Dependable
Funding For large transit agencies,
dependable Federal
funding is often essential to the creation
of similarly stable local
funding mechanisms. New Jersey is one
good example of this effect. The Hudson-Bergen Light Rail Project includes
almost 15 miles of rail line, 59 light rail vehicles and represents a total
investment of $
2.2 billion. Phase II of the Hudson-Bergen full
funding grant agreement provides $
500 million
in Federal New Starts
funding over five years. New Jersey
Transit was able to issue $
450 million in grant anticipation
bonds based largely on this New Starts commitment. The bonds are structured for
repayment through 2011. However, the availability of capital now allows
construction to be completed by 2005, even though the first Full
Funding Grant Agreement (FFGA) funds will not be received until
2004. The result of a dependable Federal
funding source is that
the project will be completed three years early and cost $
300
million less.
The benefits of stable
funding are not
limited to large agencies and large FFGA's. Phoenix Transit is a small agency
with a fleet of 350 buses, making 33 million passenger trips each year. Because
of its limited
funding stream, it cannot access capital markets
on its own. However, this agency has effectively leveraged its Federal Transit
Administration (FTA) formula
funding to speed up the
procurement of Clean Natural Gas (CNG) vehicles and fueling infrastructure by
utilizing bonds. The City of Phoenix issued $
18 million in
grant anticipation bonds to Phoenix Transit based solely on the stream of
formula funds guaranteed through TEA-21. Phoenix Transit was able to upgrade its
fleet of vehicles and install the fueling infrastructure to keep the buses
rolling, all within a single year. Without the ability to leverage the stability
of its formula funds, Phoenix Transit would have needed three or more years to
purchase the same number of vehicles and install the required infrastructure.
Further, Phoenix Transit estimates that it saved an average of
$
30,000 per bus - a total of $
1.65 million -
because it was able to purchase a larger quantity of vehicles at one time.
Dependable formula funds help agencies do more with limited resources.
Innovative Financing
Dependability can offer even more
opportunities to leverage resources when coupled with innovative financing
techniques. Under TEA-21, Congress established the Transportation Infrastructure
Financing Investment Act (TIFIA) financing mechanism, a loan and loan guarantee
program for surface transportation projects. Recently, Staten Island Ferry
signed a TIFIA loan agreement for $
159 million to purchase
three additional ferryboats and complete the reconstruction of its ferry
terminal. After September 11, when ferries carried over 60,000 people safely out
of Manhattan, reliable ferry service has become even more important to mobility
in the New York metropolitan region. Staten Island Ferry was able to leverage
$
57 million in FTA and Federal
Highway funds,
along with an additional $
264 million of State and local
monies, to secure the TIFIA loan. In the absence of TIFIA, the purchase of
ferryboats and terminal modernization would have been delayed until additional
funds could be accumulated to complete the project.
TEA-21 made a total
of $
10.6 billion in lending authority available for surface
transportation projects. To date, approximately $
3.1 billion
has been borrowed and leveraged to support over $
10 billion in
surface transportation projects. Although TIFIA is by no means the only
innovative financing mechanism available to the industry, it illustrates how
such techniques can reduce the total cost of projects, speed up implementation,
and leverage Federal investments. The Department looks forward to working with
Congress to identify additional ways in which reauthorization can promote and
support innovative financing.
Flexible
Funding
With the dependable formula and capital grant
funding
made available under TEA-21, FTA has helped many communities realize better,
safer, more efficient public transportation systems. Many leaders now realize
that public transportation must diversify its product line and offer services
that are more tailored to the needs of the traveling public. While fixed route
systems are likely to continue to be the backbone of our public transportation
systems, many communities have recognized that they must do more. So communities
are working hard to design services that take individuals where they want to go,
when they want to go, in an efficient, comfortable and convenient way.
One implication of this approach is that more attention is being paid to
the fact that customers need more than one mode of transportation available to
them, often for the same trip. Transit must connect to airports and train
stations;
highways must connect to transit; people must have a
place to park cars at key transit junctions. Reauthorization is not and should
not become a transit versus
highways issue. The fact is, good
transit doesn't work well without good
highways; good
highways don't work well without good transit; and neither
works as well as it can without good community planning.
Under TEA-21,
communities considering major transit projects begin by listening. The best
projects emerge through the meaningful involvement of all interested parties in
a community. How this is done varies from the proactive engagement of the
general public, to the creation of task forces to address special needs. Some
communities use a more traditional public hearing approach; others have gone
"high tech." In Portland, Oregon, for example, they have created "Let's Talk," a
regional discussion focused on growth, complete with an interactive 2040 concept
map that shows how a neighborhood might look 40 years from now.
The
success of such efforts is evident in communities like Boulder, Colorado, where
the GO Boulder program has been helping to preserve the quality of life by
encouraging individuals and businesses to make alternative transportation a part
of their lives. Boulder's unique "Hop, Skip, Jump, Leap and Bound" system was
designed with the goal of holding traffic to 1994 levels and a commitment to a
multi-modal transportation system. Using community meetings, surveys, focus
groups, and even a citizen design group, Boulder created a system that is so
convenient, enjoyable, and responsive that fully 60 percent of the 100,000
Boulder residents have purchased public transportation passes.
Among the
most important tools at a community's disposal as it develops
community-responsive transportation plans are the "flexible
funding" provisions of TEA-21. These provisions permit
communities to develop transportation solutions that meet their unique needs,
and enable decision makers to consider the cost-effectiveness of all
transportation options, as well as their potential impact on traffic congestion,
air pollution, urban sprawl, economic development, and quality of life. Under
ISTEA and TEA-21, more than $
7.7 billion has been transferred
from title 23
highway programs to public transportation
programs; during the same period, less than $
50 million has
been transferred from transit programs to
highway programs.
Public/Private Partnerships in Joint Development
Communities are
also taking advantage of FTA's Joint Development rules under TEA-21 that allow
transit agencies to create new revenue streams, while encouraging development
around stations and transportation centers to help communities in their efforts
to discourage sprawl. Consider, for example, the efforts of Prince William
County, Virginia - a community under tremendous population growth pressure.
There, the transit agency and a local developer are working together to ensure
the success of a new "town center" and commuter rail station. The developer will
be
funding both the capital investment and ongoing maintenance
expenses for 550 commuter parking spaces and road access to the planned rail
station. The new rail station is expected not only to encourage local residents
to visit the new town center, but also to bring daily commuter business to the
retail stores and restaurants in the development.
In fact, the entire
Washington, DC area is a prime example of how transit can spur economic
development. A Washington area Council of Governments study found that, during
the 1990s, 40 percent of the real estate development in the area (nearly
$
15 billion in private development) took place on just 3
percent of the land - the land around MetroRail stations.
Similar
economic and community enhancement stories can be found in many communities. The
MetroLink light rail system in St. Louis, Missouri, for example, was a catalyst
for the development of a $
266 million convention center hotel,
a $
60 million performing arts center, and the
$
5.8 million Jackie Joyner Kersey Sports Complex. And the Busch
Stadium MetroLink station provides easy access to the $
646
million Ballpark Village, the largest single development in the city's history.
Programs like Location Efficient Mortgages and Commuter Choice are also
providing communities with new tools to enhance livability. Under their
Transportation for Livable Communities program, for example, the Metropolitan
Transportation Commission in San Francisco has allocated $
62.5
million in Federal and local funds to Bay Area cities in order to revitalize
neighborhoods and commercial districts, and support compact, mixed-use
pedestrian-, bike- and transit-oriented development that promotes smart growth
principles. Under their Housing Incentive Program, about $
9
million will go to 15 cities when they break ground on high- density housing
near public transportation. This program is the first in the Nation to use
Federal transportation dollars as an incentive to build compact housing near
transit.
Of course, as one local Washington area councilman noted, it is
not enough to simply build projects on top of Metro stations. "Smart growth," he
said, "has to be coupled with smart transit solutions." Communities and
developers must work to ensure that new development doesn't add even more cars
to already congested roads - with solutions like offering shuttle bus services,
managing parking, underwriting transit fares and coordinating ride-share
programs.
Personal Freedom and Mobility
Having sought personal
independence and mobility through the automobile in the decades following World
War II, many Americans are reassessing their almost exclusive devotion to the
car. Even today, however, for most people "mobility" still means the family car.
But people whose age, income, or disability prevents the use of a car
are often unable to avail themselves of the many opportunities our society
provides without public transportation. In a recent survey, the American Public
Transportation Association found that 20 percent of transit riders would not
have made their current trip without transit, and nearly 70 percent did not have
access to a car at the time the trip was made.
Among public assistance
recipients, almost 94 percent do not own cars, and rely on public transportation
for basic mobility. Under TEA-21, the Job Access and Reverse Commute program
brings together transportation planners and operators to tackle the unique
challenges of job-seekers from low income areas. And it is successfully
producing a diverse set of services to meet these needs. Many of the services
are paratransit services, such as guaranteed-ride home programs, special shuttle
and van services, demand-responsive dial-a-ride services, and late-night and
weekend services.
In the Charlottesville area of Virginia, the community
has utilized Job Access and Reverse Commute
funding to
establish a 24- hour-a-day, seven-days-a-week transportation program for
qualified low-income persons in a 2,000 square mile service area. One urban
rider who works a third shift hospital job and has children in day care says
that if it weren't for the transportation program, she wouldn't be able to keep
her job. And social workers in the area say that this system has completely
eliminated transportation as an obstacle to finding and keeping a job for
welfare recipients.
According to the National Organization on
Disability, 60 percent of adults with disabilities report that access to transit
service has improved since the Americans with Disabilities Act (ADA) was signed
into law in 1990. Today, over 80 percent of transit buses are accessible, we
have built almost 30 new accessible rail systems across the country, and more
than half of the key stations in the older rail systems in places like New York
and Chicago are now accessible.
Despite this progress, transportation
challenges continue to confront persons with disabilities. Thirty percent of
adults with disabilities still cite inadequate transportation as a problem in
daily living. In contrast, among non-disabled adults, only 10 percent report
inadequate transportation as an impediment to their basic mobility.
The
ADA requires that existing public transportation be accessible; but it does not
address the gaps that exist in transportation services for persons with
disabilities. The President's New Freedom Initiative would expand the
transportation mobility options available to persons with disabilities beyond
the minimum required under the ADA, helping to fill the gaps in service that
limit employment opportunities.
Keeping our Communities Safe and Secure
Secretary Mineta recently noted that public transportation must play an
important role in achieving the President's three important goals of winning the
war against terrorism, protecting our homeland, and getting the American economy
moving again.
Public transportation has long played an important role in
helping communities cope with natural disasters. In 1989, San Francisco's rapid
transportation system was critical to the community as it coped with the
collapse and reconstruction of major roads after the Loma Prieta earthquake.
And, 1999, public transportation systems in North Carolina evacuated residents
and transported relief workers in response to Hurricane Floyd.
But the
events of September 11 gave our communities an even better understanding of the
role of public transportation during emergency situations. In New York and
Washington, public transportation safely evacuated millions of people from the
center cities, and, throughout the nation, public transportation systems came to
the aid of people who were stranded at unexpected destinations when air travel
was halted.
One important lesson of September 11 has been that the
safety and security of our communities is significantly enhanced when public
transportation systems are linked to police, fire, medical and other emergency
response agencies through community-wide planning, emergency response drills,
and centralized emergency command centers. I am proud that FTA is taking the
lead to bring these important community leaders together at emergency response
planning forums around the county.
Soon after the September attacks, FTA
began implementing a major security initiative, focused first on the nation's
high risk/high consequence transit assets. Generally, that means the subway
tunnels and stations where the large numbers of people converge and where an
attack would cause the greatest disruption to transportation services. As part
of this initiative, FTA has engaged teams of experts in security,
anti-terrorism, and transit to conduct voluntary security assessments of 33
public transportation systems. Chosen because of their high ridership levels,
the potential vulnerability of subway systems, and the potentially serious
consequences of a successful terrorist attack, all 33 agencies are voluntarily
participating in the assessment program. The assessments will be completed by
the end of May.
Each assessment includes a threat and vulnerability
analysis, an evaluation of the security and emergency response plans, and a
focused review of the community's unified emergency command structure. Based on
the findings of the assessment, FTA is offering direct technical assistance to
enhance security, modify emergency response plans, conduct practice drills, and
train employees.
The assessments are proving to be an effective tool for
both the FTA and the participating agencies. We have identified important
concerns at even the most well- prepared agencies, and have recommended
solutions to manage these risks. At the same time, we are identifying best
practices for training and response protocols, and are sharing these with the
industry. Recently, for example, guidance on responding to a chemical attack in
a subway environment was distributed to transit agencies with underground
stations; similar guidance with regard to biological attacks will be issued
soon. We are also working to make standard operating procedures applicable to
bus, light rail and other transit environments, and will make that available as
soon as possible. We will continue to look for new opportunities to enhance
transit security, while maintaining the open and accessible nature of our public
transportation systems. Conclusion
Mr. Chairman, under TEA-21, real
success has been achieved when public transportation has been given the
opportunity to work with citizens and with State and local decision makers to
envision, plan and develop economically vital communities. Public transportation
is, indeed, the key to connecting communities - ensuring that every American has
access to the employment opportunities, services, and recreational facilities in
the community, and helping businesses gain access to and attract customers and
employees. From small communities to our largest urban centers, TEA-21 has
fostered increased mobility, more choices, and more economically vital
communities for millions of Americans. Today, as we begin to consider the
reauthorization of our Nation's surface transportation laws, we have an
important opportunity to further strengthen the fabric of our communities and
our Nation.
Mr. Chairman, thank you again for the opportunity to testify
today. I would be happy to respond to questions.
LOAD-DATE: April 24, 2002