With unemployment rising and travel and tourism declining, interests are clamoring for intercession by Congress to boost the economy. Although Federal Reserve Chairman Alan Greenspan last week had urged a "wait and see" approach to determine if the airline bailout measure would do the trick, legislators this week seemed determined to move ahead regardless of Greenspan's cautions. That interest was fueled by President George Bush on Wednesday, when he indicated at a meeting with economic aides that he would consider a broad plan to help the economy.

According to the Washington Post, Bush reviewed a number of options with his economic advisers, including additional tax breaks. Meanwhile House and Senate leaders of budget and tax committees met with White House advisers to discuss outlines of a stimulus package.

The CQ Daily Monitor reported that such a package could amount to as much as $100 billion, the amount Greenspan has indicated may be needed to jump-start the stalled economy. Some $40 billion has already been approved by Congress as an emergency supplemental appropriation, as well as a $15 billion airline assistance bill.

Concerned about job losses, members of Congress appear determined to do "whatever it takes" according to Senate Budget Committee Chairman Kent Conrad (D-ND), regardless of any effect on deficit spending.

Public Works Could be Included

Transportation interests are exploring the possibility that the bill could be crafted to include some $5 billion in additional highway obligation authority, to let states put federal funding already apportioned to them to work on projects. Some $20.5 billion remains in the Highway Account of the Highway Trust Fund as of June 30. Legislation to provide additional obligation authority would allow money to flow to the states, without opening up controversial issues of distribution formulas. Because many states find themselves in difficult financial straits, the package might also be crafted to allow states to defer a state match of federal funding.

"Such a bill could spur an estimated 88,000 construction jobs," said AASHTO Executive Director John Horsley. "That could not only put people who have lost manufacturing jobs to work, but would also spread through the economy in terms of consumer spending and equipment and materials purchases. It's a ready-made win for the economy."

This week AASHTO sent out a survey to state DOTs asking them to report the number, types and dollar amounts of highway and bridge projects that are programmed, but for which funds are not currently available. States were asked to identify only those projects which could be obligated within 30 to 90 days from enactment of legislation, which would have short-term economic impact through job creation and long-term economic benefits. The intent of the program would be to increase the states' construction programs over and above work already funded.

Among those backing an economic stimulus transportation package are the Associated General Contractors of America and a number of labor organizations. In a letter on September 21 to Senator Max Baucus, the groups said, "The construction industry has long been recognized as a driving force behind economic activity, and we strongly believe that construction investment can provide the necessary economic stimulus at this time." The groups called for "releasing the unobligated balances in the Highway Trust Fund and the Aviation Trust Fund" to create "thousands of good paying construction jobs" that could jumpstart the economy.

Even before the economic fallout from September 11 terrorist attacks, some states had been hit by financial woes because of the general slowdown in the economy and the slump in high-tech industries. But the situation has worsened in many states, which now face job losses in the aviation industry and dramatic declines in tourism. Particularly hard-hit are states which depend upon sales-tax revenues, rather than state income taxes.

By week's end, the aviation industry had announced more than 100,000 layoffs, including not only airline employees but also airline manufacturing jobs such as those at Boeing Co., Washington state's largest employer. With some hotels reporting occupancy rates in the single digits, according to the Washington Post, layoffs also are occurring in the hospitality industry.

With 49 states required by law to balance their budgets, governors are responding with a range of emergency fiscal measures. In Florida, Governor Jeb Bush has called a special legislative session to address a budget gap of at least $265 million. Florida depends on sales taxes to fund 32 percent of its $48 billion state budget. With tourism dramatically reduced, analysts fear the budget gap might now exceed $1 billion.

Another state heavily dependent on tourism income, Hawaii, also has called for a special legislative session in October -- its third this year -- to deal with a budget crisis.

Other states that are not as tourism dependent are facing economic woes. Tennessee's Governor Don Sundquist has already cut some $100 million from state agencies since July, and the Washington Post reports another $100 million cut may be required in coming months, according to Sundquist aides.

Slowdown Predated Attacks

The state fiscal problems predated the terrorist attacks, according to columnist David Broder, who reported this week that the growth of state tax revenue in the second quarter of this year was the lowest in eight years. Even states that had been reporting healthy surpluses are now raising warning flags, he said.

Congressional appropriators and the Office of Management and Budget continue to negotiate over increasing FY 2002 spending levels in the wake of the terrorist attacks. The additional funding will be used for defense, education, and relief efforts, as lawmakers will likely adhere to $661 billion in overall discretionary funding set in the FY 2002 budget resolution.

Congressional leaders and OMB met throughout the week in an attempt to finalize the level of increased funding in FY 2002. Senate and House appropriators last week sent the President a proposal to boost overall funding to $686 billion, with $18.4 billion for defense, $4 billion in additional education spending, and $2.2 billion for flood relief in Texas. By Thursday no settlement had been reached, although reports indicate negotiators are haggling over less than $2 billion.

As debates continue over FY 2002 spending, the current fiscal year expires on Sunday. With none of the 13 annual spending bills complete, Congress approved a continuing resolution (H.J. Res 65) to keep federal agencies operating until October 16. Although conferees have been named on seven bills, meetings have not been scheduled. Conferees on the transportation spending bill have not been named.

While additional funding for FY 2002 will likely be approved, there is general agreement that discretionary spending will remain at $661 billion, the level agreed to in the budget resolution. House and Senate appropriators have yet to finalize the so-called 302(b) allocations to each of the 13 subcommittees, according to appropriations staff.

Budget Surplus Reduced

Revised budget estimates released this week indicate that the $313 billion surplus predicted in January for FY 2002 has been virtually wiped out. Due to an economic slowdown and implementation of the tax cut, the surplus was revised in August to $174 billion. However, in the aftermath of the September 11 terrorist attacks, the Congressional Budget Office told members of the Senate Budget Committee this week that the surplus could shrink to between $30 billion and $50 billion, according to the CQ Daily Monitor.

Peters, who had been with the Arizona department for 15 years, will be the first woman to head the operating administration with the largest budget in the U.S. Department of Transportation, at more than $30 billion. She will play a key role in the reauthorization of the Transportation Equity Act for the 21st Century (TEA-21), set for 2003.

"Mary Peters has proven to the transportation community that she is an outstanding manager and visionary," said AASHTO Executive Director John Horsley. "AASHTO has benefitted greatly from her leadership and advocacy of new approaches. We are excited to see her take those skills to FHWA." Peters served as chair of AASHTO's Standing Committee on Planning and its Asset Management Task Force.

Peters was named director of ADOT in 1998. There, she managed more than 4,800 employees and an annual budget of about $3 billion. As director and, earlier, as deputy director, Peters worked out a plan with mayors in her state to expedite work on a freeway system. The project, originally slated for completion by 2007, is running seven years ahead of schedule, according to the Arizona Republic (July 11, 2001 AASHTO Journal).

She was active in the Western Association of State Highway and Transportation Officials (WASHTO), in the National Partnership for Highway Quality, and on the Board of the Intelligent Transportation Society of America. Peters has been a supporter of advanced transportation programs in Arizona, including freeway management systems in Phoenix and Tucson, statewide road weather information systems, and a comprehensive electronically integrated border crossing program.

AASHTO Forms FHWA Working Group

AASHTO has created a working group to provide recommendations to Peters on potential improvements to cooperation between state DOTs and the FHWA. The group plans to meet early in October.

State DOT heads have been asked to provide input on how FHWA's structure at headquarters and field levels could be improved, where and how FHWA can best add value, functions which are critical to state DOTs and should be sustained, functions which should be phased out, and responsibilities that should be delegated. Policy recommendations on how states and FHWA can best advance environmental streamlining are also being solicited.

The Task Force on Transportation Security will share information and advise member departments and AASHTO on appropriate actions with regard to the following areas:

• The vulnerability of the highway transportation assets and possible enhancements of the security of these assets;
• Possible enhancement guidelines for emergency response plans for highway transportation; and
• Coordination with the U.S. Transportation Command, especially the Military Traffic Management Command (MTMC) for military mobilization.

  The following members have been named to the Task Force:

  State DOT Representatives

  Doug Van Buren, Superintendent, Division of State Patrol, Wisconsin DOT

  David Albright, Chief, Research Bureau, New Mexico State Highway and Transportation Department

  Mary Lou Ralls, State Bridge Engineer, Texas DOT

  Paul Liles, State Bridge and Structural Design, Georgia DOT

  Terry Simmonds, Emergency Response Coordinator, Washington DOT

  James Slifer, Director, Division of Highways, Illinois DOT

  Gary Hoffman, Chief Engineer, Pennsylvania DOT

  Thomas Hicks, Director, Office of Traffic and Safety, Maryland DOT

  Steven Mondul, Special Assistant to the Highway Commissioner, Virginia DOT

  Other Representatives

  Arthur Hamilton, Federal Lands Highway Program Manager, Federal Highway Administration, US DOT

  William Medigovich, Director, Office of Emergency Transportation, Research and Special Programs Administration, US DOT

  Robert Franz, Senior Engineer for Highway Systems, Military Traffic Management Command, US Department of Defense

  A representative to be named from the National Emergency Management Association (NEMA)

Security Briefing/Symposium Set October 30

There will be a security briefing titled "Protecting Public Surface Transportation Against Terrorism and Serious Crime" focused on highway and public transit facilities in Washington, D.C. on October 30. The program will be sponsored by the U.S. Department of Transportation and co-sponsored by AASHTO, the American Public Transportation Association (APTA) and Caltrans.

The program will feature reports from the Mineta Transportation Institute based on security studies they have performed over the years. The reports will focus on security assessments and mitigation as well as emergency response/preparedness. Additional presentations will be made by various security organizations and transportation departments or transit operators.

The program should be of interest to State DOT and transit property officials as well as their security/emergency managers. While further details regarding the briefing and registration procedures will be forthcoming, the briefing will be at the J.W. Marriott Hotel in Washington, DC on October 30, from 8:30 to 5 including lunch. There will be a modest registration fee and APTA will handle the registration and meeting logistics.

Other Security-Related Activities

The aviation and aerospace community have been particularly hard-hit by the September 11 highjackings, with airlines posting hundreds of millions of dollars in losses due to the temporary shutdown ordered by the Federal Aviation Administration and a subsequent decline in passengers. Congress and the administration worked quickly last week to clear a $15 billion financial assistance package (H.R. 2926, S. 1450) for the nation's ailing airlines (AASHTO Journal, September 21), and a commission established under the bill will now determine how to distribute the funding to the respective air carriers.

Many lawmakers, including Senate Appropriations Committee Chairman Robert Byrd (D-WV), were concerned that service to smaller communities would be cut back. Language was added that directs the Secretary of Transportation to ensure the continuation of the essential air service program.

Lawmakers and the administration now are focusing on measures to shore up security on airplanes and in airports. However, the proposals to date have the federal government taking different roles in airport security.

The Senate Commerce Committee on Monday cleared a bill titled the "Aviation Security Act" (S. 1447), which shifts airport security responsibilities from the airlines to the Federal Aviation Administration.

Overall, the bill calls for improved training and background checks for airport personnel, along with improved screening procedures for passengers. It creates new positions at FAA to oversee federal airport security activities and a new Aviation Security Coordination Council consisting of representatives from the Departments of Transportation, Justice and Defense, and the Central Intelligence Agency. Provisions are included to deploy more air marshals and strengthen cockpit doors.

The Senate bill includes a $1.00 surcharge to help pay for the program. It has 24 co-sponsors.

House Aviation Subcommittee Ranking Member William Lipinski (D-IL) has introduced H.R. 2895, the Aviation Security Enhancement Act of 2001, a targeted proposal that expands the air marshal program and implements improved passenger-screening procedures. Subcommittee Chairman John Mica (R-FL) has indicated he will introduce separate legislation.

The Bush Administration presented its aviation security proposal at O'Hare airport on Thursday. The proposal calls for uniformed, highly-visible federal personnel managing security operations at 420 commercial passenger airports nationwide. Non-federal and federal workers would share security activities, however. The proposal also provides $500 million to upgrade cockpit doors and other airplane modifications, and expands the air marshal program. Governors would also be requested to call up the National Guard reserves, at the federal government's expense, to augment existing security staff until the new measures are in place.

The initial implementation of Bush's security measures will be paid through $3 billion of the $40 billion emergency response package passed by Congress. The Washington Post reports that passenger fees and existing airport improvement money would be used to finance the program once it is underway.

Obstacles Block Quick Passage

Although the proposals revamping airport and airline security have many similarities, two issues may prevent quick passage: the federal role in providing security and relief for airline workers who were recently let go.

Strong positions are rising in Congress regarding the federal government's role in airport security. Some lawmakers contend that the public's trust can only be won back by placing highly-trained federal workers in charge of airport security, although opinions are split on whether such activities should be under the authority of the Department of Transportation or the Department of Justice. Those opposing the federalization of airport security contend that it would be much more expensive, and the likely unionization of the federal workers could lead to strikes and disruptions in service.

The bill would authorize a 10-year program with three major elements:

• It would permit states to issue up to $36 billion in federal tax-exempt bonds for high-speed intercity rail facilities;
• It would expand, to a total of $35 billion, the loans and loan guarantees available through the Railroad Revitalization and Infrastructure Financing program and correct features of the program that have made implementation difficult;
• And it would reauthorize the Swift Act authorizing $25 million for high-speed rail corridor planning and $10 million for technology development.

Young, Chairman of the House Transportation and Infrastructure Committee, said "I have made easing congestion on the ground, in the air and on the water the top priority for this Congress. I believe that construction of a true high-speed passenger rail system in the United States is an integral piece of that solution."

Quinn, Chairman of the Railroad Subcommittee, said "This level of investment will present all Americans with a viable, safety, and efficient mode of transportation. I will be aggressively lobbying my colleagues for swift passage of this vital legislation."

Both Young and Quinn linked the initiative to the events of September 11. "During the past two weeks," said Quinn, "thousands of Americans have come to depend on passenger rail service as an essential component of our transportation network ... It is our duty to provide the resources necessary to enhance this service -- and in particular the development and deployment of high-speed rail corridors across the country."

Young contrasted his proposal with pending bills in the Senate and House (High Speed Rail Investment Act of 2001, S. 250 and H.R. 2329), saying: "There are three significant reasons why other proposals will not get our nation any closer to a comprehensive national system of high-speed passenger rail corridors: One, they do not provide enough funding, two, they do not provide sufficient flexibility in the hands of states in making transportation decisions, and three, what little money is provided comes at too high a cost to the federal treasury."

Petri told workshop participants that he expects to have a series of reauthorization hearings starting this fall that feature Transportation Equity Act for the 21st Century success stories and possibly another hearing on research and development. He said next year's hearings will focus on specific programs. Petri expects and hopes for a much stronger coalition supporting an increased program and highlighted the addition of Tom Donahue's U.S. Chamber of Commerce effort.

He said an increased level of investment in reauthorization is needed, and indexing the user fees to keep the Highway Trust Fund with growing revenue should be examined. He mentioned the concern with the impacts of tax breaks for motor fuel blended with ethanol on Trust Fund revenue.

Petri indicated he is open to more flexibility with regard to the eligibility of highway funds for preservation, maintenance and operations, along with traditional capital outlays. He said that earmarks will probably continue, and keeping them to about five percent of the total pot might be what is needed.

He added that the Subcommittee is examining the possibility of increasing the level of allowable highway obligations as an economic stimulus tool, but said he would need some evidence that additional construction spending would occur quickly.

Republican members of the committee agreed not to offer amendments to the bill during the committee debate, but instead work out compromises to the bill when the legislation reaches the floor of the senate. Committee Chairman Jeffords (I-VT) vowed to work with Republicans and other members of the Senate to ensure final passage of the bill. Jeffords noted that similar legislation cleared the committee last year but died on the floor of the senate. According to the Chairman, "it's clear that the negotiation process must occur after committee action, almost regardless of the committee's final product."

Several Republican lawmakers on the committee forecast failure for the bill once it reaches the floor of the Senate. Senator Crapo (R-ID) expressed concern that the committee had not worked out the necessary compromises to ensure passage of the bill by the full Senate. Senator Voinovich expressed similar concerns and added that the bill would reduce incentives to clean air.

When Congress amended the Clean Air Act in 1990, it mandated that gasoline sold in high pollution areas contain at least two percent oxygen by weight. Fuel additives such as MTBE and ethanol enable refiners to meet the oxygenate requirement.

The controversy over the MTBE stems from the belief that this additive contaminates water supplies in many states. If approved, the bill would ban the use of MTBE in gasoline within four years from the date of enactment, and authorize $400 million for the cleanup of areas affected by the controversial fuel additive.

Truckers entering and leaving ports in Newark and Elizabeth, N.J. also reported long delays because authorities are inspecting all cargo, including the rare step of breaking import and export seals to examine vehicle contents. The new steps are nearly doubling the time it takes drivers to get in and out of the facilities, to nearly four hours, a dispatcher told the Washington Post.

the Post also reported that the U.S. Coast Guard had diverted a 30 million-gallon liquid natural gas tanker away from the Port of Boston for offloading of its cargo. The Coast Guard has brought up to 120 reservists into Boston to conduct armed patrols of the harbor and the Charles River.

Giuliani's high-occupancy vehicle requirement applies to all cars entering Manhattan south of 62nd Street from 6 a.m. until noon on weekdays, on all East River bridges controlled by the city, the New York Times reported. The same restrictions are expected at the Lincoln Tunnel, which is operated by the Port Authority of New York and New Jersey, and the Queens Midtown Tunnel, operated by the Triborough Bridge and Tunnel Authority. Taxis, limousines and livery vehicles aren't affected, and Manhattan residents driving solo won't be as long as they do not leave the island and attempt to return during restriction hours.

"I don't think it's going to get any worse, because everyone knows what the deal is," Abraham Ninan, a traffic-control agent stationed at the Queensboro Bridge, told the Associated Press on Friday.

Some of the jams have been caused by outright bridge and tunnel closings and the cordoning-off of Lower Manhattan, where the incident occurred. However, even where arteries and portals are open, security checkpoints have been set up out of concern another terrorist act may take place. Officials were searching trucks and other vehicles, spurred in part by the disclosure as part of the probe of the Sept. 11 events that members of the terrorist conspiracy had sought licenses to drive trucks that carry hazardous materials.

City officials told the Times that on an average weekday, about two-thirds of the vehicles in Manhattan below 96th Street are occupied only by the driver.

District of Columbia Mayor Anthony Williams called the economic impact of the airport's continuing closure "severe" and said "prompt, immediate action is necessary," the Washington Post reported.

Williams was joined at a news conference by local leaders including D.C. Delegate Eleanor Holmes Norton, U.S. Rep. Constance Morella of Maryland, and Montgomery County, Maryland Executive Doug Duncan. In addition, in a newspaper advertisement paid for by the Greater Washington Board of Trade, Maryland Gov. Parris Glendening and Virginia Gov. James Gilmore both said "Terrorists aim to ground freedom. Let's fight back."

Reagan National was closed with all other airports in the nation Sept. 11 after terrorists slammed two jets into the World Trade Center and a third into a wing of the Pentagon. Though the Pentagon is only a short distance from Reagan National, the plane dropped into it originated at Dulles International Airport, which has reopened with other airports across the country.

U.S. Transportation Secretary Norman Mineta has said the decision to keep Reagan National closed rests with national security officials and the U.S. Secret Service.

"We're seeking highly motivated, dedicated and trained" agents to fill the positions, the FAA's Jack Donovan told reporters at a briefing. "We want patriotic Americans who want a good job and don't mind being away from home."

FAA will not disclose how many air marshals it currently employs or their routes, training procedures or training locations, for security purposes. However, the Post reported that the staff size of the program has fluctuated over the years - it has existed since the 1960s, when it was created in response to aircraft hijackings to Cuba - as concern about such events has waxed and waned.

Interest appears high, as more than 150,000 people have downloaded copies of job descriptions from FAA's web site since Sunday, when the personnel expansion notice went up. The job pays $35,000 to $80,800 a year.

To get a head start on expansion of the program, FAA officials said, they are placing agents already trained in other federal law-enforcement agencies into some of the slots. The other agencies include U.S. Customs, the Secret Service, the Immigration and Naturalization Service and the Bureau of Alcohol, Tobacco and Firearms.

The marshals will travel on U.S. carriers for both domestic and international flights. Agents must be able to get and maintain top-secret security clearance, be in excellent physical condition and be between the ages of 21 and 40.

Schuster, prior to his work for the IBTTA, held senior management positions with the American Automobile Manufacturers Association and the America Waterways Operators.

Schuster, who will assume the office October 15, succeeds acting ITSA President David J. Hensing, who took the Post last January after his retirement from AASHTO following a distinguished career spanning two decades.

"Traffic congestion and the growth of transit, as well as increasingly sophisticated emergency- management programs, are intelligent transportation issues facing exponential growth in the near term," Schuster said. "These deployment issues, as well as the increased presence of in-vehicle telematics, are areas where I hope to ensure that ITS America retains its leadership role."

ITSA Chairman Larry Yermack, who is President of PB Farradyne, Inc., a systems integrator, said Shuster "brings a significant depth of knowledge about the transportation industry, transportation technology and management skill to this position. He appreciates the challenges and strengths presented by ITS America, whose members have such varied interests."

Yermack also said Schuster's experience in legislative and regulatory affairs will be a great asset to ITSA as transportation organizations approach the Congressional reauthorization of transportation funding in 2003.

The Washington Post reported that OPEC oil ministers met at the organization's headquarters in Vienna, Austria, and decided that there was little they could do to curb declining crude-oil prices. If OPEC made less oil available, it is likely prices would shoot up and the economic slowdown would cause global oil demand to weaken further.

The city recently removed - at a cost of about $1,000 - a crosswalk citizens had painted at one intersection and also removed four stop signs installed by the same people, without city authorization. A similar crosswalk-painting occurred the previous year in another neighborhood, and such incidents occur as frequently as twice a month, according to Tammy Ravert, a field supervisor for Seattle Transportation.

Phil Thordarson, manager of traffic operations for the agency, said citizens may do such installations with the best of intentions, but do not realize that unauthorized crosswalks or signs may actually endanger lives.

If crosswalks are installed at locations where drivers don't expect them, they still may not stop, but pedestrians using the crosswalks may get a false sense of security from their presence, he said.

He said the city will analyze the need for agency-installed signs or crosswalks at the locations where citizens took matters into their own hands, and will install sanctioned ones if a need is found.

Bill Ankner, Rhode Island Department of Transportation, appointed to chair the Administrative Subcommittee on Financial Management, replacing Tom Barry of Florida who now chairs the Standing Committee on Planning.

Bill Ankner, Rhode Island Department of Transportation, appointed as to a four-year term as a member of the Standing Committee on Aviation.

Bruce Smith, New York Department of Transportation, appointed to a four-year term as the Region 1 representative to the Standing Committee on Highway Traffic Safety;

James H. Kopf, Mississippi Department of Transportation, appointed to a four-year term as the Region 2 representative to the Standing Committee on Highway Traffic Safety;

John O'Doherty, Michigan Department of Transportation, appointed to a four-year term as the Region 3 representative to the Standing Committee on Highway Traffic Safety;

Troy Costales, Oregon Department of Transportation, appointed to a four-year term as the Region 4 representative to the Standing Committee on Highway Traffic Safety;

Jo Anne Moore, Idaho, appointed to a four-year term as the at-large representative to the Standing Committee on Highway Traffic Safety;

Bill Ankner, Rhode Island Department of Transportation, appointed as a Region 1 representative to the AASHTO-AGC-ARTBA Joint Committee; and