Congress and the Bush Administration are currently negotiating the size and components of an economic stimulus package as a result of the September 11 terrorist attacks (see related article). AASHTO is currently polling its members on the number and dollar value of transportation projects that could be obligated for construction within 90 days should funding be available in a stimulus package.

Regarding the size of the highways portion of the stimulus package, discussions have ranged as high as $10 billion; however, AASHTO has consistently focused on a $5 billion sum, because it would most closely equate to the guaranteed obligations under the Transportation Equity Act for the 21st Century (TEA-21).

That funding level utilizes existing receipts in the Highway Trust Fund but still leaves sufficient resources for use in upcoming surface transportation program reauthorization proposals.

The AASHTO survey found that state departments of transportation can provide an immediate stimulus to the economy, with all the projects identified able to be obligated for construction within three months.

"As Congress and the administration consider ways to jump-start the economy, the states stand ready to direct available funding from an economic stimulus package to highway, bridge, transit and rail improvements," AASHTO Executive Director John Horsley said. "This funding would result in immediate short-term benefits through the creation of thousands of jobs, along with long-term economic benefits by improving the nation's transportation infrastructure."

Every $1 billion of increased investment in highway infrastructure generates 42,000 jobs, according to the Federal Highway Administration.

Through the AASHTO survey, the state departments of transportation provided the number, types and dollar amounts of highway and bridge projects that are programmed for FY 2002, but for which funds are not currently available. Projects identified by the states should be able to be obligated for construction within 60-90 days from enactment of legislation.

President Bush on Wednesday surprised many by announcing that the administration would support an economic stimulus package of up to $75 billion, in addition to the $55 billion that has already been approved for recovery efforts related to the September 11 terrorist attacks. Bush's proposed funding level, which reportedly was endorsed by Federal Reserve Chairman Alan Greenspan earlier this week, is quickly gaining consensus among congressional leaders, although Senate Majority Leader Tom Daschle (D-SD) has expressed support for a $50 billion package.

Debate on exactly what form a potential stimulus package should take is now underway, and Republicans and Democrats are reportedly far apart in their views on the levels of tax relief and spending that should be incorporated into the package.

The administration on Thursday provided an initial plan that stresses tax cuts for businesses and individuals, along with some funding for unemployment benefits and health insurance. The administration also is recommending $3 billion in grants to states to help offset the effects of layoffs. Tax relief has also been endorsed by many congressional Republicans, including House Republican Majority Leader Dick Armey (R-TX), who has called for as much as $150 billion in additional tax incentives.

Infrastructure Component?

Several stimulus proposals are also being floated in the Senate, with many including an infrastructure spending component:

• Senator James Jeffords (I-VT), chairman of the Environment and Public Works Committee, is circulating a plan that would provide $5 billion to states for highway construction, along with up to $5 billion more for water infrastructure programs.
• Senate Majority Whip Harry Reid (D-NV) announced on Monday his support for $22 billion in infrastructure spending, including $5 billion for highways, $5 billion for transit, and $12 billion for high speed rail over 10 years.
• Senate Finance Committee Chairman Max Baucus (D-MT) is considering adding a transportation component into a stimulus package that may be considered by his committee.

Some Senate Republicans are cool to the idea of additional federal spending, however. According to the CQ Daily Monitor, Sen. Charles Grassley (R-IA), ranking member of the Finance Committee, has urged restraint in developing a stimulus package, and expressed opposition to additional infrastructure spending. Sen. Phil Gramm (R-TX) told reporters that he would not support any proposal unless it made permanent the $1.35 trillion tax cut passed by Congress earlier this year.

NGA Stimulus Priorities

While not providing a specific recommendation on funding, the National Governors' Association on Thursday outlined broad-based themes that should be addressed in a possible relief package, which included an economic stimulus component.

In a press release, the NGA said that the extremely weak fiscal position of many states -- combined with the economic disruption stemming from the terrorist attacks -- limit the states' ability to provide assistance to those in need. NGA asserted that many of the recommendations are budget-neutral, and that a reduction or deferment of federal requirements will help states accelerate the rate of spending.

According to the Monitor, appropriators approved a final allocation for transportation that falls between the levels approved in the respective House and Senate bills. The final allocation is set at $15.3 billion for transportation, which is $410 million more than approved by the House and $280 million less than the Senate's version.

Introduced by full committee Chairman Don Young (R-AK) and subcommittee Chairman Jack Quinn (R-NY), RIDE21 would authorize up to $71 billion in high-speed rail projects and other rail projects over 10 years. It would allow states to issue $36 billion in private activity bonds, expand the Rail Revitalization and Infrastructure Financing program (RRIFF) to $35 billion ( while correcting features of the program that have made it difficult to implement) and reauthorize the Swift Act for $35 million annually.

The bill, a background description and statements from the hearing may be found at the subcommittee web site, www.house.gov/transportation.

Witnesses expressed broad agreement on the growing importance of both passenger and freight rail and commended the bill's sponsors for offering a proposal scaled to the need for increased investment in rail infrastructure.

David D. King, Deputy Secretary of the North Carolina Department of Transportation, testified on behalf of the States for Passenger Rail Coalition. King outlined the involvement of states with the development of high-speed passenger rail service and described how states "are working with business leaders to develop solutions to our congested highway and airport networks."

King, and other witnesses, focused on two provisions of the bill which he said "merit further discussion and perfecting language."

To be eligible for financing through the proposed program, corridors would have to be "? designed for sustained cruising speeds of 125 miles per hour." King said that requirement was unnecessary and would "exclude many worthy projects." He suggested that 110 miles per hour would be achievable and satisfactory. The bill also requires corridor design to eliminate "all existing railroad grade crossings." King termed that "impractical for broad application across the country" and not necessary to guarantee safety.

Witnesses and members focused considerable attention on the tax-exempt bond financing element of RIDE21, contrasting it with the tax-credit bonding financing mechanism contained in the pending high-speed rail corridor financing bills (H.R. 2329 and S. 250). King expressed concern about the ability and advisability of states taking on the entire debt burden involved, and said that "it fell short of a true federal state transportation funding partnership."

In his opening statement, Congressman Young declared that under H.R. 2329 and S. 250 "Amtrak has too much control over the approval and funding of high-speed systems." In contrast, he said, "RIDE21 puts the federal and state governments in control of the development of high-speed passenger rail and balances their roles."

Mineta was one of several speakers at the Annual Meeting of the American Public Transportation Association to address the impacts of the September 11 terrorist attacks on the nation's transportation system. At the opening general session on Monday, Mineta said "In the wake of the dastardly and cowardly attack, we have entered a new era." He added, "We must rethink the safety we provide in the transportation system. You are on the front line. The old political battles and jurisdictional disputes must be set aside. There is too much work and too little time."

Mineta expanded his remarks beyond the aviation system saying, "All of us must adapt to what is a new form of normalcy. The federal government will be a full partner with you in this effort."

To encourage public confidence in the security of the nation's transportation system, Mineta has traveled by air to Chicago and by Amtrak to Philadelphia in the past week. Mineta noted that the U.S. DOT's security team is working to examine the safety and security of transportation systems nationwide, and believes them to be safe.

Also addressing the APTA meeting was Federal Transit Administrator Jenna L. Dorn, who praised bus and transit operators for keeping systems running in Washington, D.C. and New York City on the day of the terrorist attacks. "The people who kept the buses and subways running on September 11 are today doing their part to keep our economy running," she said. She added that while the events of September ll will "change public transportation forever," America must continue traveling. "If we stop, they win," she said.

Incoming APTA Chairman Peter M. Cipolla announced that he would add two new areas to the chairman's initiatives, security and emergency management. He pledged cooperation with government agencies, saying "We promise to protect our partnership. We will keep America safe and moving."

Borski Supports Economic Stimulus

Alaska Governor Tony Knowles (D-AK) strongly supported the proposal, urging that Congress develop a series of tax breaks to encourage its development. Knowles said that such a pipeline would benefit the entire nation in terms of energy security and reduced dependence on foreign fuel sources.

But industry spokesmen warned that the volatile nature of natural gas prices makes the project uneconomic. While consumers paid $10 per thousand cubic feet last winter, current prices have dropped to only $2 per thousand cubic feet. Nevertheless, producers said that while they have no immediate intention of applying for permits to build a pipeline, Congress should take steps to ease the regulatory requirements.

"I am honored to be selected by President Bush and privileged to join the strong team that Secretary Mineta has assembled at U.S. DOT," Peters said. "Working with our state and local partners, all of us at FHWA will continue our efforts to develop and maintain a strong, safe and modern transportation network, which is essential to America's security and prosperity in the 21st century."

Peters, who had been with the Arizona department for 15 years, will be the first woman to head the 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.

Peters Addresses Road Gang

Mary Peters on Thursday spoke to the Road Gang, emphasizing safety and security as two top priorities that FHWA will address to an even greater degree. Environmental streamlining will get her close attention, and she will strive to improve the delivery of Federal-aid projects. In addressing reauthorization, Peters said she will work with all constituencies, and hopes to deliver a proposal that is a consensus document.

Peters also mentioned that FHWA will pay close attention to its stewardship and accountability responsibilities, and will also examine the appropriate federal role, as related to state and local roles, in the administration of the highway program.

Judycki Named FHWA Deputy Executive Director

With the retirement of Vince Schimmoller last week, Dennis Judycki will serve as Deputy Executive Director until such time as a new executive director is approved by the President.

The letter addressed the states', and AASHTO's, willingness to assist U.S. DOT in ensuring travelers' security, in restoring the transportation network to sustain the national economy, and in maintaining the financial viability of every segment of the transportation industry.

In the letter, the committee chairs express support for a viable and safe aviation system and offer assistance "in finding ways to ensure that vital components of our system, including commercial, regional, small-community service, and general aviation remain viable." With respect to surface transportation, "AASHTO and its member states, working with the U.S. DOT, are already taking steps to prepare for, prevent, or be ready to respond to acts of terrorism that may threaten our nation's roads, tunnels, bridges, rail lines, and ports," the letter states.

The standing committee chairs add that AASHTO is establishing a Security Task Force to assess information on threats, vulnerabilities, operational techniques, communications, and other procedures.

Bush earlier had insisted that baggage screening should remain the province of private security firms, saying stronger federal oversight of those would accomplish needed security controls. The debate continued as airports in several states were patrolled by armed National Guard units.

On Thursday, House GOP leaders voiced strong objections to Bush's new stance, and U.S. Transportation Secretary Norman Y. Mineta canceled a meeting on the topic with a bipartisan group of senators after spending more than an hour with House GOP members who reportedly showed little interest in compromising over proposed security federalization.

"The president had some concerns about the implications of putting all these new tens of thousands of people on the federal payroll because he believes that there can be effective safety at airports without taking that step," said Bush's spokesman Ari Fleischer. "But he's aware that there are many members of Congress who see it differently, and he's going to work with them."

Backers of full federalization say it would result in screeners who were better trained, paid and supervised; opponents say once they became full federal employees, poor performers would be tougher to fire.

The airport will service fewer and smaller flights -- there were 100 at the airport for its reopening day Thursday, only about 12 percent of prior daily operations, the Washington Post reported -- and be under heavy security restrictions. Getting it back in business, which apparently was the focus of hot debate among White House advisers, cheered travel and tourism-related businesses throughout the area.

"The personal pleasure traveler is starting to come back already" to air travel in general, said Stephen M. Wolf, Chairman of US Airways, which has a strong presence at Reagan National. "We also see signs of business travelers coming back." Wolf's airline put the first flight back in the air from Reagan National at 7:05 a.m. - a shuttle to New York.

Wolf, however, said he hopes check-in and security clearance times will improve. An Amtrak spokeswoman told the Post that bookings are up 12 percent since the attacks. The length of clearance times at the airport appear to be making the overall time differential between an Amtrak and an airline trip less favorable to the airlines for time-conscious travelers.

The Chairman of the Washington Tourism and Convention Corp., Bill Hanbury, said reopening Reagan National "is a good first step" in his organization's campaign to entice travelers to Washington. Hanbury's corporation plans to spend $5 million - $10 million toward that goal. The latter figure is how much the area's hospitality industry has been estimated to be losing daily since the attacks.

The Washington Metropolitan Area Transit Authority, which operates the subway system in the nation's capitol, is offering free subway and bus rides the weekend of October 13-14 to backstop a campaign titled "Be a Tourist in Your Hometown," to bring suburbanites to the city. The state of Maryland also suspended tolls on bridges and tunnels and eliminated admission fees to state parks the weekend of October 6 and 7, to boost activity, according to the Washington Post.

Airlines Still Feel Effects

Against that positive backdrop, however, many airlines - even outside the U.S. - are being buffeted by economic forces unleashed by the terrorist attacks on New York's World Trade Center and the Pentagon in Washington on Sept. 11. In those attacks, hijacked jets were deliberately flown into the targeted buildings. All air travel in the United States was temporarily grounded as security was assessed and upgraded.

The explosion Thursday of a Russian commercial aircraft en route from Tel Aviv, Israel to Siberia may have been caused by a stray surface-to-air missile launched during military exercises in Ukraine, U.S. officials told the Washington Post, rather than by any deliberate act of terrorism. There were 76 people on board the plane. The Ukrainian Defense Ministry denied its forces shot down the plane, and in Israel, the minister of the interior told U.S. officials at the Pentagon terrorism was not yet ruled out.

While Americans are flying again, planes are flying emptier and airlines have been laying off thousands of workers. Swissair Group, a European concern, grounded its fleet Tuesday affecting 19,000 passengers; its executives said it had run out of cash, the Washington Post reported. However, Swissair Group later announced in news releases it had lined up financing through the Swiss government and would seek a debt moratorium under Swiss law; it was up to 50 percent of flight operations on Friday. Sabena, the Belgium-based airline with financial ties to Swissair, also sought bridge credit from the Belgian government and announced it had "the necessary cash to guarantee normal flight activities."

Financially weak airlines are also expected to go out of business, the Post reported, but stronger ones "appear to be using the political cover of the attacks to drop unprofitable routes, lay off employees and shift business to low-cost carriers as they struggle to rebuild their customer base." United Airlines shifted several routes to Atlantic Coast Airlines, a commuter partner based at Virginia's Dulles International Airport.

The Post also reported that, as of Friday, the Bush Administration was proposing rules for federal aid to strapped airlines to exclude from $10 billion in loan guarantees those corporations whose financial prospects were weak before Sept. 11. A group of 14 senators has written to Office of Management and Budget Director Mitch Daniels saying that, while bailing out airlines already failing was not the goal of the bailout package, "it also was not our intention for the federal government to become the architect of a new aviation economy, effectively picking winners and losers."

Continental Airlines said its load factor - the percentage of seats both available and occupied by paying customers - was 61.4 percent in September compared with 72.4 percent a year previous. However, the figure would have been even lower - about 50 percent instead of 61.4 - if an apples-to-apples comparison had been made, according to the Post: the latter percentage was calculated against a reduced operations base.

Minnesota Department of Transportation officials told the Minneapolis-St. Paul Star Tribune that 15 privately contracted road-construction projects were partly or completely shut down on Tuesday. Of the 15 projects, six are in the metro area. MnDOT Spokeswoman Judy Melander said, "In most cases it's the employees of the private contractors who decided not to cross the picket line, or not go to work even if there isn't a picket line."

Construction has been delayed on many campuses of the Minnesota State Colleges and Universities system because of picketing. For lack of personnel, enforcement of environmental regulations and calibration checks at gas pumps were ceased or curbed. State motor vehicle departments have been turning away 16 year-olds eager to get driver's licenses. There is neither staff, nor time, to administer the tests.

Eighty-six percent of workers eligible to strike did not go to work on Monday.

The program is based upon new federal tax law that states employees do not owe personal income tax, Social Security, or Medicare taxes on wages or employer contributions used to purchase commuter passes. Employees may qualify for up to $750 per year in pre-tax deductions on transit passes or parking, or if the worker participates in a vanpool.

The Baltimore Sun reported that such officials as Howard County (Maryland) Executive James N. Robey, Police Chief Waye Livesay and Fire Chief Joseph Herr went into schools to underline the importance of such everyday - but potentially dangerous - activities as crossing streets or walking to school. They were among officials in 300 schools nationwide who made such visits in support of the national campaign.

"This program has a big visual impact for the students," said Assistant Principal Paul J. Norfolk of the Talbott Springs Elementary School in Howard County. "They get to see how many people want them to walk to school safely."

A study by the National Safe Kids Campaign found that nearly two-thirds of vehicles traveling through school zones in the half-hours prior to, and after, school hours were speeding.

In a letter October 9 to President George W. Bush, Senators James Jeffords (I-VT), Harry Reid (D-NV), Ernest Hollings (D-SC) and Paul Sarbannes (D-MD) outlined a stimulus package that they said, "not only addresses short-term economic needs, but helps to build a better America with economic benefits that will be enjoyed long into this century." Included in the package are the following:

Highway Infrastructure

To relieve congestion and improve the physical condition of highways and bridges, a $5 billion increase in obligation limits is proposed for states in fiscal year 2002. The letter states that these funds "can be put to work immediately to address the significant backlog of road and bridge improvements." The obligation authority would be distributed to states under existing formulas and for existing programs. An estimated 75,000 jobs could be created within the first 12 months and an additional 100,000 plus in the year to follow, the letter states.

Transit Improvements

An increase of $5 billion is proposed for transit funding for "additional security measures, long-overdue infrastructure upgrades, capacity enhancements, and improved service quality." The letter notes that some $10.8 billion to $16 billion is needed annually to maintain and improve the condition and performance of transit systems.

Rail Infrastructure Needs

The letter states, "As the events of September 11th demonstrated all too clearly, our rail infrastructure provides a vital transportation alternative to millions of travelers and is a critical component of an intermodal transportation network." The package proposes $3.2 billion for Amtrak for short term security and capacity enhancements. In addition, some $12 billion is requested over ten years for high-speed corridor development and $2 billion for freight railroad capacity improvements to benefit commuters and relieve congested urban areas and ports.

Airport Improvement Program Increases

The senators call for $1.5 billion in Airport Improvement Program funding to keep airport construction plans on track. They warn that precipitous drops in revenue due to reduced air carrier traffic may force some airports to defer construction projects, or to use AIP funds for operations. The letter notes that spending on the federal AIP program "translates into quality, high-paying construction jobs throughout the country."

Increased Spending for Ferry Transportation and Marine Terminals

Citing the important role that the marine ferry network plays in reducing congestion, maximizing the use of mass transit and providing emergency response in critical times, the proposal calls for $300 million in Maritime Administration loan guarantees and grants for marine ferry and terminal construction. The funding will help the shipbuilding industrial base and provide transportation alternatives for coastal communities, the letter states.

A copy of the letter is enclosed for members of the AASHTO Board of Directors.

House Also Readying Package

Meanwhile, House transportation leaders were also reported to be preparing a package of transportation funding proposals to spur the nation's economy, despite signals from House leaders that they prefer to focus on tax cuts. Democrats on the House Transportation and Infrastructure Committee have crafted a plan that calls for $23 billion in rail investment, $7.5 billion in additional highway obligation authority, $5 billion in transit spending, $2 billion for the Airport Improvement Program (AIP), $1 billion for ports and intermodal facilities, and $10 billion for wastewater and drinking water infrastructure.

The rail component of the package would include $15 billion for tax credit bonds for high-speed rail as well as $3 billion for capital investment for Amtrak.

Prospects Uncertain

While transportation observers believe that prospects grow stronger each day for including infrastructure investment as part of an economic stimulus package, there is no certainty as to what proposals will ultimately settle out. The package will originate in the House Ways and Means Committee, where Chairman Bill Thomas (R-CA) has indicated that he will start with a blank slate and allow members to propose whatever amendments they choose. Thomas indicated that markup of a bill will begin today. According to the October 11 CQ Daily Monitor, Thomas intends to focus on business and personal tax cuts and jettison any proposal that does not have widespread bipartisan support. Thomas indicated he does not intend to include any infrastructure spending proposals, such a that proposed by the Senate, believing such spending could not act swiftly enough to impact the economy in year's time. Despite the fact that both parties concede some kind of economic stimulus package is needed, Democrats and Republicans appear far apart on the contents, particularly regarding the tax measures and infrastructure investment.

The survey found that state departments of transportation, working with their partners in local government and the private sector, can provide an immediate stimulus to the economy by creating thousands of jobs while addressing high-priority infrastructure needs.

Every $1 billion of increased investment in highway infrastructure generates 42,000 jobs, according to the Federal Highway Administration. Estimates are that 75,000 jobs would be created within 12 months of enactment, and an additional 100,000 during the year to follow. The remaining jobs would occur within the next three years.

John Horsley, AASHTO Executive Director, said, "We did this survey of the states to determine if they could truly put these funds to work quickly enough to create new jobs. Clearly there are projects across the country that are ready and waiting, if Congress only gives the go-ahead."

Through the AASHTO survey the state departments of transportation provided the number, types and dollar amounts of highway and bridge projects that are programmed for FY 2002, but for which funds are not currently available. Projects identified by the states should be able to be obligated for construction within 60 to 90 days from enactment of legislation. A complete survey summary will be issued by AASHTO next week, once all returns are available.

Tom Donohue, President of the Chamber and chair of its 250-organization coalition Americans for Transportation Mobility, this week urged President Bush to include transportation investment as "an important component" of an economic stimulus package. Citing the U.S. Department of Transportation's estimate that every $1 billion of investment creates 42,000 new jobs, Donohue said "Investment in our nation's transportation infrastructure will provide critical short-term benefits to the economy." He added that the transportation system is critical for the mobilization of the nation's armed forces.

Finally, Donohue notes that each of the federal transportation trust funds "have significant unobligated balances that should be used to pay for increased transportation infrastructure investment."

In a joint letter to members of Congress, the American Association of Airport Executives and the Airports Council International urged Congress to nearly double the size of Airport Improvement Program for FY 2002, from the $3.3 billion included in pending appropriations bills. The association estimated that 40,000 to 50,000 jobs are created for every $1 billion of investment, with "multiplier spending and tax revenue benefits for local, state and federal governments." The airport executives added, "In the next months and years, in addition to building additional runways and taxiways, our nation's airports will have to make numerous capital investments to respond to the new aviation security paradigm. These include additional buildings, lighting, communication systems and access control systems, as well as redesigning baggage control and security checkpoints system."

The associations state that AIP funds will be critical to making necessary security changes, particularly in light of the financial strain airports will face in funding increased law enforcement personnel, at a time revenues are declining.

Initial consideration of the Senate's aviation security bill (S. 1447) stumbled out of the gate this week over continued disagreement on the federalization of airport security workers, providing assistance to airline workers, and other ancillary amendments.

Bill sponsors were able to reach an agreement that would place some 28,000 government screeners and law enforcement officials at 142 of the nation's largest airports. Under the bill, federal screeners or local law enforcement personnel can be used at smaller airports. A $2.50 "enplanement" fee would be tacked onto tickets to help cover the costs. Reports indicate that the Administration would accept federalization of security operations, although President Bush expressed "serious concerns" with the Senate bill.

Senators agreed to an amendment that would place the security operations under the Department of Justice, rather than the Department of Transportation.

Republicans were successful in defeating an amendment that would have provided $1.9 billion in financial assistance and insurance coverage for laid off airline workers. On a 55-44 vote supporters of the amendment failed to invoke cloture to limit debate. Senate Majority Leader Thomas Daschle (D-SD), a strong supporter of including financial aid for workers, agreed to withdraw the amendment, and in a solemn speech on the floor promised to continue to fight for some sort of relief package.

There were indications that an amendment would be introduced to provide funding for Amtrak. The CQ Daily Monitor reported that Amtrak supporters Joseph Biden (D-DE) and Robert Torricelli (D-NJ) were considering including some financial support be included in the package, but were assured by Democratic leadership that the proposal will be brought up separately.

Status in House Unclear

The federal role in airport security may bog down consideration in the House, where conservatives have expressed strong reservations over the costs involved. Debate is continuing in the House, although no comprehensive proposal has been introduced.

Noting that a proposal to federalize airport security would probably muster enough votes in the House at this time, Majority Whip Tom Delay (R-TX) promised this week to hold up any proposal until he is satisfied that the measure will fail.

House Transportation and Infrastructure Committee Ranking Member James Oberstar (D-MN) and other Democrats have expressed support for full federalization of airport security, and a bill similar to the Senate version may be introduced today.

House leaders have also considered not taking up a bill at all, according to the CQ Daily Monitor. Rather, they have encouraged the Administration to address airport security through executive orders.

The Budget Committee approved the bill (H.R. 3084) on Thursday, which sets a $686.2 billion discretionary spending level for FY 2002. The new spending limit is an increase over the $661 billion set in the budget resolution, and provides additional funding for defense, education, and natural disaster relief. The bill will be considered on the House floor as a stand alone measure or it may be attached to a spending bill.

Congress will be required to formally raise the spending limit, since a $551 billion level was set in the 1997 balanced budget act. Otherwise the Office of Management and Budget would be required to order a $135 million sequester.

Appropriators are also starting to gear up to move the 13 FY 2002 spending bills as quickly as possible. Senate Republicans have warned, however, that they will hold up appropriations bills unless judicial nominations are moved.

A second continuing resolution (H.J. Res 68) was passed by the House and Senate on Thursday and awaits the president's signature. It will keep government operations running through October 23.

The nation's airlines are experiencing a 20 to 30 percent decline in passenger volume as a result of the terrorist attacks, which has had repercussions across the aviation industry and the related sectors of the economy. Virtually all airlines have scaled back operations, which has raised concerns that smaller communities may be the first to feel a pinch in service.

The $15 billion airline relief package (S. 1450) passed by Congress did contain language that directs the Secretary of Transportation to ensure that all communities that had scheduled air service before September 11, 2001, continue to receive adequate air transportation service, and that essential air service to small communities continues. It also authorizes $120 million for the essential air service program in FY 2002.

In response the U.S. Department of Transportation published an order in the October 3 Federal Register that directs air carriers to provide 15-day advance notice to the Secretary on plans to substantially reduce or end a community's passenger service. The order terminates at the end of the year.

While the Secretary has the discretion to continue service to a community, he is not compelled to do so under S. 1450, which has raised the concern of some lawmakers representing rural areas, according to the CQ Daily Monitor.

Airports Affected

Airports across the country have also experienced direct impacts from the September 11 attacks and subsequent decline in air travel. The American Association of Airport Executives and the Airports Council International have projected that airports will lose some $2.6 billion in revenues and passenger facility charges as a result.

The Associated Press reports that airport capital projects across the country are currently on hold or are being reconsidered. Among the airports cited are Phoenix's Sky Harbor Airport, which has halted work on a $1.2 billion expansion projects. Capacity projects at Los Angeles, Minneapolis-St. Paul, and Charlotte are also being scaled down or put on hold.

Senate rules allow the Majority Leader authority to intervene in committee action at his discretion, and to allow the Committee chair to substitute a bill of his own choosing for floor consideration. There was no indication from Daschle what he might propose, or whether it would be taken up before the Congress recesses for the year, according to the October 11 Washington Post. The action came on Wednesday after a Senate Democratic strategy session, when it appeared that two Democratic members of the Energy and Natural Resources Committee would join their Republican colleagues to support provisions for the Alaskan oil drilling.

Daschle's action drew heated objections from Senator Frank Murkowski (R-AK), the ranking minority member of the committee, and other Republican senators, who maintained that the action would prevent them from having their say in the bill's provisions. Senator Phil Gramm (R-TX) responded by threatening to add an amendment to the airline security bill to allow oil drilling in the Wildlife Refuge. Energy Committee Chair Senator Jeff Bingaman (D-NM) said that the action was taken because the provisions being considered in the bill fell under the jurisdiction of other committees.

The House has already voted to approve the drilling provisions when it approved the Bush energy proposal by a vote of 240 to 189. Environmental groups have made blocking such drilling a top priority, and had hoped they could kill the proposal in the Senate. The issue has been a point of strong lobbying efforts, however, by labor organizations.

U.S. DOT's proposed legislation would increase department inspectors' authority to inspect packages in transportation and to stop seriously unsafe transportation, increase the maximum civil penalty for hazardous materials violations from $27,500 to $100,000, expand training for hazardous materials transporters, and up the enforcement authority of the department's state enforcement partners.

Secretary Mineta said, "We are proposing tough actions to address the serious problem of undeclared or hidden shipments of hazardous materials. We are also asking for more authority to stop and inspect shipments, important to both security and safety."

The legislation would also provide the U.S. Postal Service with civil penalty authority to effectively enforce its regulations on mail shipments of hazardous materials.

The court case, Adarand Constuctors, Inc. v. Mineta, was first heard by the Court in 1995. The firm, a specialty contractor that installs guard rail, was successful in obtaining a ruling that DBE mandates must be "narrowly tailored measures that further compelling governmental interests."

Although the Court stopped short of ruling the program unconstitutional, it did remand it to a lower court. That prompted a major revision to the federal DBE program, which have been the subject of subsequent legal challenges and appeals. According to the October 1 Engineering News Record, attorneys do not believe the court decision will force the suspension of the DBE program as it now stands, but that it will impact suits that are currently in the court system. Such cases are pending in five states.

When the plans for the new Penn Station were unveiled in May of 1999, the U.S. Postal Service had pledged to assist in development of a new train station at the James A. Farley Post Office while maintaining high-quality mail service there. But in a letter to state officials on Sept. 21 of this year, Rudolph Umscheid, the Postal Service's vice president for facilities, said "The catastrophic events that befell the nation last week have also severely impacted the Postal Service."

Postal operations previously conducted at the Church Street post office in New York -- which took an estimated $25 million in damage in the terrorist destruction of the World Trade Center -- now will be done out of the Farley post office, Umscheid said. As a result, he said, the deal was off.

Many civic leaders who had backed the Farley-Penn Station project were angered, saying the Post Office should be prepared to make adjustments just as other New Yorkers and their institutions have, noting that the city overall has suffered some $60 billion in damage. Some of those leaders had hoped the Farley project, already in progress, would give both a visual and an economic boost to the city's ailing West Side.

Michael Marr, an aide to New York Gov. George Pataki and spokesman for the state-run Pennsylvania Station Redevelopment Corp., said while millions of Americans "have extended their hands to New Yorkers, to give what they can to help us in this time of great need, only the Postal Service has extended a hand looking to take back something that they had already agreed to provide to New Yorkers."

Umscheid said the overall financial difficulties of the Postal Service are the motivation for his letter, noting that the agency is supposed to be self-supporting but cannot raise postal rates itself.

The scope and purpose of the program, and proposes stewardship projects were covered in a series of video conferences October 9th and 10th, involving top managers from 23 state departments of transportation, FHWA Headquarters and FHWA Division Offices. James Codell, Kentucky Transportation Cabinet Secretary and Chair of the AASHTO Standing Committee on the Environment, told participants that AASHTO had advanced the new program to help the states:

• Incorporate innovative environmental protection and enhancement measures into transportation projects;
• Monitor and document environmental stewardship activities;
• Share environmental stewardship experiences with others; and
• Realize the benefits of practicing good environmental stewardship in terms of public trust and credibility and streamlined project delivery.

Peters, Burbank Pledge FHWA Support

During the video conference, Federal Highway Administrator Mary Peters pledged the full support of her administration. "Environmental stewardship is the right thing to do and the smart thing to do," Peters said. She stressed the importance of the federal and state partnership in accomplishing the goals of protecting environmental resources and improving those that have become degraded.

Cindy Burbank, FHWA's Program Director for Planning and Environment, joined Peters in emphasizing that while the FHWA has done a great deal to make environmental goals a big part of everything they do, the State DOT's, as owners and operators of the major highway systems, are uniquely positioned to do much more.

FHWA can help in the stewardship demonstration program, they said, by working out cooperative agreements with the proposed AASHTO Center for Environmental Excellence, and encouraging the FHWA Division Offices to take full advantage of the funding flexibility available under their Title 23 programs to support activities.

States Outline Stewardship Initiatives

New York State DOT Commissioner, Joseph Boardman, in describing his state's environmental stewardship initiatives, said that they are now oriented to "doing the right thing" and to "walk the talk." The New York DOT has been recognized for its Environmental Initiative, which has incorporated environmental improvement into every aspect of the department's work. Other states also described their proposed stewardship projects which included:

• Establishment of programmatic agreements for: wetland creation, restoration and enhancement; cultural resource protection and enhancement; endangered species habitat conservation measures; storm water quality improvements; stream restoration and enhancement; wildlife passages; and tree planting for screening and aesthetic purposes;
• Special environmental monitoring of project design, construction and maintenance activities to ensure fulfillment of commitments;
• Addition of environmental staffing to oversee environmental elements of project construction, maintenance and operations;
• Application of environmental management system principles to integrate environmental protection and enhancement measures into all business activities;
• Fostering more collaborative relationships with regulatory and resource agencies, environmental interests groups and communities; and
• Using more context sensitive design and community sensitive design techniques.

Assisting in the video conferences were Janet Myers and Katie McDermott of the Center for Transportation and the Environment, and Wayne Kober, AASHTO Senior Environmental Specialist. For more information on the environmental stewardship demonstration program, contact Kober at 717-502-0179.

E. Dean Carlson, President of AASHTO and Secretary of the Kansas Department of Transportation, said that the goal of "Put the Brakes on Fatalities Day," is to promote public awareness that more than 40,000 Americans are killed annually on the nation's highways - a toll that could be lowered with a new focus by drivers and backing for policies and budgets that promote highway safety. He noted that the safety initiative was being observed by states coast to coast, in a variety of ways.

Rep. Petri, noting that the groups involved in organizing the observance were in many cases the same coalition that helped pass the Transportation Equity Act for the 21st Century, said that TEA-21 "included a multilateral approach to improving highway safety" ranging from grants to help parents buy and properly use child-safety seats to making our infrastructure safer.

"Poor roads contribute to more than 13,000 of the 42,000 annual roadway fatalities," he said. "TEA-21 provided unprecedented funding for modern infrastructure." The State and Community Grants program of TEA-21, also known as Section 402, directs at least 40 percent of the $932.5 million in that program to local traffic-safety problems, he said.

Larry Emig, an engineer in the Kansas Department of Transportation, conceived the idea as a grassroots attempt to raise Americans' consciousness about their ability to reduce the deaths, injuries and high costs associated with vehicle crashes.

"I imagined a day just like today - a day dedicated to bringing awareness of the importance of road safety," Emig said. "My dream then, as it is now, is simple: to reduce the number of traffic-related fatalities ? With increased awareness and personal commitments, we can save lives."

Dr. Jeffrey Runge, Administrator of the National Highway Traffic Safety Administration, called on Americans to help reduce the excessive death toll on U.S. highways. "The more we do to educate the public about this nationwide epidemic, the closer we approach a day with no fatalities," Runge said. He emphasized the preventability of crashes, and noted that 98 percent of transportation fatalities occur on roadways.

Mary E. Peters, Administrator of the Federal Highway Administration, agreed: "The Federal Highway Administration (FHWA) is committed to working with our safety partners to reduce crash-related traffic fatalities and increase driver awareness," she said. "We have one of the safest highway systems in the world, but we must take a greater personal responsibility when using the nation's roadways."

At FHWA, staffers are focusing on single-vehicle run-off-the-road crashes, which account for 37 percent of all highway fatalities; speed-related crashes, which account for 30 percent; pedestrian and bicycle crashes, accounting for 12 percent; and intersection crashes, accounting for 23 percent of all such fatalities.

Terry Mulcahy, Secretary of the Wisconsin Department of Transportation and Chair of AASHTO's Standing Committee on Highway Traffic Safety, emphasized the roles played by education, enforcement and engineering in reducing highway fatalities. He said that highway safety is a priority for AASHTO, and that the association would work with Congress to ensure funding is provided "to get the job done."

Runge and Peters - on behalf of U.S. Transportation Secretary Norman Y. Mineta - signed a memorandum of understanding to keep the event going year to year, on October 10 annually. They were joined by key organizers of the event, which had more than 25 sponsoring groups: AASHTO, AAA, the Roadway Safety Foundation, the National Society of Professional Engineers, the National Association of Governors' Highway Safety Representatives and The Road Information Program. The MOU also will be signed by the administrator of the Federal Motor Carrier Safety Administration, who was testifying before Congress when Wednesday's event was held on the steps of the U.S. Capitol.

The driver said the brakes failed in the delivery truck just before the crash. According to the Pittsburgh Post-Gazette, the vehicle went out of control and veered sharply to the left and slammed into three construction barrels, nearly flattening them. It then came upon the five victims, who were standing about 12 feet from the bridge.

The accident occurred on a straight section of Route 60 that approaches the Vanport Bridge over the Ohio River. The highway descends for over a mile in a long, sloping grade before reaching the bridge.

Carlson, Secretary of the Kansas Department of Transportation, was one of 74 engineers named to the Academy in 2001, which brings the total membership to 2,041. Election to the National Academy of Engineering is among the highest professional distinctions accorded an engineer. Academy membership honors those who have made "important contributions to engineering theory and practice, including significant contributions to the literature of engineering theory and practice," and those who have demonstrated "unusual accomplishment in the pioneering of new and developing fields of technology."

Carlson was honored for his "outstanding leadership and dedication in developing national highway policy, systems management initiatives, and research programs."

Carlson was appointed Secretary of the Kansas Department of Transportation by Governor Bill Graves effective January 9, 1995. Carlson has over four decades of experience in the field of transportation. He retired in 1994 as Executive Director of the Federal Highway Administration (FHWA) - the highest career position in the agency. His 36-year career with the FHWA included many positions both in the Washington Headquarters and various Regional Offices.