SECTION: CAPITOL HILL HEARING TESTIMONY

LENGTH: 3084 words

COMMITTEE: SENATE BANKING HOUSING AND URBAN AFFAIRS

HEADLINE: SURFACE TRANSPORTATION

TESTIMONY-BY: MR. WILLIAM MILLAR, PRESIDENT

AFFILIATION: AMERICAN PUBLIC TRANSPORTATION ASSOCIATION

BODY:
Prepared Statement of Mr. William Millar President American Public Transportation Association

Hearing on "Transit in the 21st Century: Successes and Challenges."

March 13, 2002

The American Public Transportation Association (APTA) appreciates the opportunity to testify on the upcoming reauthorization of the Transportation Equity Act for the 21st Century (TEA 21).

APTA's 1,400 public and private member organizations serve the public and the public interest 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. TEA 21 Has Sparked a Transit Renaissance

"The car was over crowded, folks were hanging on the straps, Girls had bundles in their laps, came from Macy's store perhaps; You couldn't carve your way out with a carving knife or ax Remember I am telling honest facts, . . .

Hold fast! Don't you lose your nerve! Grab your lady by the arm, we're going 'round the curve Keep your wits about you and you'll never get a jar, If you listen to the man who runs the trolley. . .car!"

Mr. Chairman, the above lyrics are from a 1901 song entitled "Hold Fast!" by Jerome and Schwartz, which is featured in the exhibit on transit and its unique relationship to the American City now at the National Building Museum. The lyrics come from a time when public transportation was the lifeblood of the American City and people packed onto transit cars as tight as sardines in a can. It has now been a century since "Hold Fast" was published, and thanks in no small part to Congress' investment in the TEA 21 federal transit program, once again the song's lyrics ring true. Public transportation is experiencing a renaissance in the United States and is enriching the lives of our citizens by giving them mobility and freedom of transportation choice. However, if transit's resurgence is to continue, we need to increase investment in public transportation infrastructure, maintain the TEA 21 guaranteed funding provisions, and streamline delivery of the transit program.

Transit Ridership is at Record Levels

Americans used public transportation a record 9.6 billion times in 2001 and transit ridership has grown 23 percent since 1995 according to preliminary ridership figures just released. This represents the highest level in more than 40 years. Over the last six years, transit usage has grown faster than the population (4.5%), highway use (11.8%), and domestic air travel (12%). In 2000, ridership was up in all modes and in all parts of the country. In the light rail category, Denver (41%), San Jose (34%), and New Jersey Transit (38%) experienced tremendous ridership success. New light rail service in Salt Lake City is exceeding estimates and was a big success during the recent Olympic Games. The commuter rail operations in Dallas (39%) and in Baltimore (7.5%) have had continued success. Heavy rail ridership increased by more than 7% in New York City, Washington, D.C., and Philadelphia, and it rose by nearly 4% in Chicago and by almost 13% in San Francisco. Bus service was up in large cities like Washington, D.C. (8.4%) and New York City DOT (6.7%), as well as in cities across the country like Birmingham, AL (5.7%) and Spokane, WA (5.1%).

INVESTMENT IN THE TEA 21 TRANSIT PROGRAM HAS PAID-OFF

The record transit ridership increases are a direct result of the increased federal investment in TEA 21. TEA 21 authorized $41 billion for public transportation, and guaranteed $36 billion, a significant increase over the previous funding. This funding increase benefited transit systems in both urban and rural areas. In 1997, before TEA 21, total funding for the rural program was $115 million. In 2002, the rural program is funded at $223.4 million, an increase of 95 percent. This compares with a 65 percent increase in the overall growth of the federal transit program over the same period. A crucial provision of TEA 21 has been the budgetary "firewalls," which guarantee that Transportation Trust Fund monies are used for transportation purposes.

The transit funding guarantee provision has been instrumental in insuring 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 funding under the guarantee has been a big plus for transit agencies that must develop 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 state-of-the-art transportation improvements. 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 TEA 21 investments have enriched the lives of Americans by giving them mobility and the freedom to do what they want and need to do, and created real success stories. To capture some of these success stories, APTA and the American Association of State Highway and Transportation Officials (AASHTO) jointly published a report called "Money at Work," which we are pleased to submit for the record.

Transit Plays Key Role in National Emergencies

Perhaps one of the best illustrations of the benefits of the investment in the transit program was the role that transit played 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, hundreds of thousands of citizens were evacuated quickly and without injury. Here in Washington, the Washington Metropolitan Area Transit Authority (WMATA) 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 harms way. This same story was true all across the country as transit systems helped evacuate citizens from shut down 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 TEA 21 Transit Investment Has Made Positive Contributions to the U.S. Economy

In addition to significant increases in transit use, TEA 21 investments in the transit program have generated significant economic benefits. 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.

Not only is the TEA 21 transit investment spurring economic growth in the nation's major metropolitan areas, but it is boosting the economy in smaller towns and rural areas as well. For example, investment in transit systems nationwide has fueled the growth of Chance Coach in Wichita, Kansas. With a new manufacturing plant opened in 2000, the company has increased its staff, production and sales, and created a successful public transportation business which contributes over $15 million annually to the local economy. There are numerous other examples of bus manufacturers operating in the nation's heartland. Neoplan USA buses are built in Lamar, Colorado and Brownsville, Texas; New Flyer buses in St. Cloud, Minnesota; Nova buses in Roswell, New Mexico; North American Bus Industries buses in Anniston, Alabama; Champion buses in Imlay City, Michigan ; MCI buses in Pembia, North Dakota; and Orion buses in Oriskany, New York. In addition, Kawasaki will be building rail cars in Lincoln, Nebraska.

Transit Investment and the Environment

The TEA 21 transit investment is also helping to protect the environment. Mr. Chairman, let me tell you about something in our own backyards. An article in last week's Washington Post (3/4/02) said that Maryland's population of Baltimore Orioles, long in decline, could vanish altogether late this century due to dramatic changes in migration patterns and declining habitats strongly influenced by global warming. The article cites as study by the American Bird Conservancy which suggests that the effects of global warming may be robbing Maryland and a half-dozen other states of an important piece of their heritage by hastening the departure of their state birds. The report says the earth's rising temperature, which scientists attribute to carbon dioxide and other green house gases, is already shifting songbird ranges, altering migration behavior and perhaps diminishing some species' ability to survive. The good news is that transit use can help reduce green house gas emissions. For example, here in the Washington region alone, the Metrorail system removes 325,000 vehicles from the road and helps to keep approximately 1,400 tons of hydrocarbons, 9,000 tons of carbon monoxide and 700 tons of nitrogen oxides out of the region's air on an annual basis.

The Demand for Public Transportation is Soaring

The consistent annual ridership growth in nearly every mode of transportation sends a message loud and clear: people are leaving their cars at home and using public transportation more and more. As new systems open doors and existing systems expand their service, demand is exceeding the speed at which new service can be funded and implemented. Now more than ever, steadily growing congestion is causing people to seek alternative forms of transportation to commute to work, complete errands, make health care visits, and to get to and from sports and entertainment events.

Voters Demanding More Transit

It's no wonder that so many American cities have recently voted to start or expand light rail, commuter rail, or bus service in their communities. Just last week, on March 5, in a statewide election California voters overwhelmingly approved Proposition 42, which changes state law to require that all state gasoline tax revenue be devoted to transportation beginning in 2008. Under the provision, 20 percent of the gas sales tax funds will be used for public transportation. Voters have also supported recent transit initiatives in 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, among others.

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.

TEA 21 REAUTHORIZATION

Without question, the TEA 21 investment in transit has paid-off by helping the economy and enriching the lives of millions by giving them mobility and freedom of choice to do what they want to do. However, the current level of federal investment in the nation's public transportation system is inadequate to keep up with the steadily growing demand for additional transit services and the need for improved maintenance of the core transit system. This is why reauthorization of TEA 21 is critical and why we urge Congress to preserve a strong and growing federal investment in the surface transportation system.

APTA has formed a reauthorization task force with broad representation from a cross section of the industry. The task force is working on a balanced reauthorization proposal for the entire transit industry. Overall, APTA supports retention of the basic principles of TEA 21, including a needs-based transit program. APTA's reauthorization proposal centers around three themes: 1) Increasing Investment in the Program; 2) Maintaining the TEA 21 Funding Guarantees; and 3) Streamlining Transit Program Delivery.

1.Increasing Needs Means Increasing Investment in the Transit Program

APTA supports increasing investment in public transportation infrastructure. Additional funding is needed to maintain the existing capital investment and to expand core capacities in order to meet growing demand for service and support national policy goals. Overworked bus and rail fleets paired with increasing ridership have taken their toll over the years.

APTA has compiled a Transit Needs Synthesis Report, which summarizes and makes projections based upon estimates of transit capital needs studies conducted by APTA, the Federal Transit Administration (FTA), and the Community Transit Association of America (CTAA). A copy of the report is attached for the Committee's review. Based on the study, preliminary estimated total transit industry needs from FY 2004 through FY 2009 will be $253 billion. This is an average of $42 billion per year, in FY 2003 dollars. The $42 billion annual amount includes: $12.4 billion annually to complete 208 transit new start projects authorized in TEA 21; $7.4 billion annually for buses and bus facilities to replace over vehicles and to expand bus fleets to increase service; $6.5 billion annually to expand the core capacity of existing transit infrastructure to meet existing demand and prepare for continued growth in demand; $6.2 billion for Fixed-Guideway modernization; and $3 billion for small urbanized and rural areas.

The Department of Transportation (DOT) is expected to release its biennial "Conditions and Performance" report this summer. The 1999 DOT report recommends an annual transit investment of $16 billion in order to improve both transit conditions and performance. However, the 1999 Conditions and Performance report is outdated because it is based on anticipated transit ridership growth of 1.9 percent. Yet, actual ridership growth has far outpaced the 1999 estimate. Adjusting to an annual ridership growth of 4.5 percent and in 2003 dollars, the DOT needs amount becomes $27.4 billion annually. AASHTO is also expected to release its "Bottom Line Report" in Fall 2002. The Bottom Line report has been compiled prior to each recent reauthorization bill and assesses surface transportation capital needs for highways and transit. APTA also plans to do another survey of its members' funding needs later this year.

2.Maintain Transit Program Funding Guarantees

APTA supports maintenance of the transit program budgetary funding guarantees. TEA 21 included a significant budget act amendment which created new discretionary "mass transit" and "highway" spending categories under the discretionary budget cap. These discretionary funding "firewalls" for surface transportation spending have ensured that the transit program has grown at an average rate of about 9 percent since passage of TEA 21. Most importantly, the guarantees have provided transit authorities, states, and urbanized areas with certainty as to the level of funding they would receive each year. This is important because a stable funding stream is essential for transit authorities and states and metropolitan areas, who need to develop long-term transportation plans and to efficiently manage capital projects.

The reliability of the TEA 21 transit funding has prompted faster project implementation, and innovations in financing, building and operating transportation facilities. Transit authorities, states and metropolitan areas have put in place aggressive new transportation measures to take advantage of the funding guarantees and to fully accelerate critical, often delayed projects.

In addition, the provision has ensured that transportation trust fund revenues are spent for transportation purposes. This is critical because transit needs exceed $42 billion annually. Since federal transit capital assistance now funds about half of all annual transit capital spending, this means that the federal program when coupled with non-federal matching funds is addressing less than one third of those needs. In this regard, APTA urges the Congress to fund the transit program at no less than the $7.2 billion guaranteed level in FY 2003.

3.Streamlining Program Delivery

From streamlining the drug and alcohol testing program to simplifying the federal procurement process, APTA's reauthorization task force is recommending a host of changes that would significantly simplify and improve existing federal program mechanisms. We are organizing our efforts under four broad categories: Streamlining Program Delivery; Improving the Planning Process; Simplifying the Procurement Process; and Revising Other Federal Programs. We look forward to sharing these many initiatives with the Committee.

CONCLUSION: HOLD FAST! PRESERVE AND EXPAND TEA 21

Mr. Chairman, the song "Hold Fast" ends with these words, Keep your wits about you, and you'll never get a jar, if you listen to the man who runs the trolley. . .car!" In light of this admonishment, I urge the Committee to listen to the operators of the nation's trolley cars and Hold Fast! Hold Fast by recognizing the many successes of TEA 21 which have enhanced the American quality of life; Hold Fast by increasing investment in the TEA 21 transit program; Hold Fast by preserving the transit guaranteed funding provisions; and Hold Fast by streamlining delivery of the transit program.

APTA appreciates this opportunity to testify on the development of legislation to continue programs authorized under the expiring Transportation Equity Act for the 21st Century. We believe that public transportation is an essential element of the nation's transportation network, an element that can enhance and improve the entire system. We look forward to working with this Committee during the reauthorization process and would be pleased to provide additional information to assist you in your deliberations.



LOAD-DATE: March 26, 2002