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Volume 101 Number 42
October 19, 2001
Executive Digest

Congress
Information
Details

AASHTO and APTA Release New TEA-21 Accomplishments Report


Economic Stimulus Gathers Steam

    While the size, shape and content still are in flux, members of Congress hope to see some action in about two weeks on a package of tax breaks and new spending to stimulate the economy, possibly including funding for ready-to-go transportation projects.

    There is already movement in the House, where the Ways and Means Committee on October 12 approved a $99.5 billion package in a party-line vote, with the GOP in the majority. Although the package was slated for floor action on Thursday, the vote has been postponed until next week because of the House decision to recess through October 23.

    Meanwhile, Democratic leaders are seeking support for an alternative $50 billion spending package for roads, airports and railroads, to stimulate the lagging economy and provide funding for high-priority security measures. While discussions have been under way for several weeks about using transportation investment to boost employment nationwide, the latest proposal by House Minority Leader Richard Gephardt (D-MO) would direct that priority be given to projects aimed at protecting facilities from terrorist attack.

    According to reports, the Democratic bill would provide $5 billion each for highways and transit, $8.5 billion for water and wastewater facilities; $3 billion for Amtrak, $2 billion for grants to the Airport Improvement Program; and $8 billion for other projects. Another $20 billion is proposed for loan guarantees and bonding authority for freight and high-speed rail projects.

    The Democratic alternative would also include about $35 billion in tax cuts, including a one-year increase in the amount of purchases businesses could write off, and a provision to allow a company to use losses this year to reduce tax liability from prior years. Democrats also would to see between $30 billion and $35 billion for increased unemployment benefits, including health insurance for displaced workers.

    In the Senate

    Senate Majority Leader Tom Daschle (D-SD) has asked Senate Appropriations Committee Chairman Robert Byrd to assemble three or four options for an economic-stimulus package that would include an assortment of short-term spending options which may provide as much as $35 billion in discretionary spending and $20 billion in mandatory spending. Priority may be given to projects that not only have a stimulus effect on the economy, but also increase domestic security. Spending options could include, among others, the $15.4 billion in transportation projects proposed by Senator Harry Reid (D-NV). Tax provisions would come under the jurisdiction of the Budget Committee, chaired by Senator Kent Conrad (D-ND). Indications are that the Budget Committee would like to have its recommendations ready within two weeks.

    The Bush Administration has urged the Congress to consider an economic stimulus package of about $75 billion, based on tax cuts. But Federal Reserve Chairman Alan Greenspan told the Joint Economic Committee this week that neither increased public-project spending or another tax rebate or capital-gains-tax cut would jump-start the economy.

    A survey being conducted by AASHTO indicates that with 47 states responding, over 2,200 projects worth over $14 billion could be obligated for construction within 90 days should federal funding become available through a stimulus package.


Amtrak Security Bill Clears Senate Committee, Awaits Floor Action


    Legislation that would provide Amtrak $1.77 billion for security-related infrastructure improvements and personnel was passed by a Senate committee this week. Amendments expanding the scope and scale of the bill will be introduced when it is taken up on the Senate floor, perhaps as early as next week.

    The Senate Commerce Committee on Wednesday cleared a scaled-down bill (S. 1550) intended to provide Amtrak funding to make improvements to key infrastructure, including tunnels, bridges and stations. The bill, titled the "Rail Security Act of 2001," includes $515 million for system-wide security upgrades. These include hiring and training additional police; canine units and security equipment; $998 million to upgrade tunnels in New York, Baltimore and Washington, D.C.; and $254 million for Penn Station in New York to facilitate emergency response, along with renovations to two bridges in Connecticut.

    At the request of senators representing Western states, a provision was added that mandates that no more than 50 percent of the $515 million available for system-wide security upgrades be spent inside the Northeast Corridor. Provisions were added to give the Department of Transportation an oversight role ensuring funds are spent for security enhancement.

    The bill passed by the Commerce Committee was scaled down considerably from other proposals to assist Amtrak. Committee Chairman Ernest Hollings (D-SC) had readied legislation (S. 1530) that would have provided $3.2 billion for Amtrak, along with $35 billion in direct loans and loan guarantees for freight rail, passenger rail and rail security projects. That bill, backed by Sen. Joseph Biden (D-DE), also would have eliminated the congressional mandate for the company to become self-sufficient in 2003. Ranking Member John McCain (R-AZ) objected to the scope of the bill, and the two negotiated to move a more targeted measure. Hollings hinted that he may hold a hearing on S. 1530 soon.

    Committee members had readied 19 amendments to S. 1550, but those were withheld until it is considered on the Senate floor. According to the CQ Daily Monitor, amendments that may be offered include one by Sen. Kay Bailey Hutchison (R-TX) to provide funding for engines and equipment outside the Northeast Corridor, and one by Sen. Trent Lott (R-MS) to provide grants for relocation of local rail lines. Sen. John Breaux (D-LA) may introduce an amendment to provide grants for short-line rail improvements, while Sen. John Kerry and others may seek to remove Amtrak's self-sufficiency mandate.

    As prospective amendments piled up, Sen. Breaux said "It could be a long day on the railroad when we get to the floor."

    Port Security May Be Addressed

    Among amendments that may be tacked onto the Amtrak bill is legislation to shore up security at the nation's ports. Introduced by Sen. Hollings, the "Port and Maritime Security Act of 2001" (S. 1214) directs the Secretary of Transportation to establish a Port Security Task Force to help coordinate security and safety in ports. The Coast Guard would also be required to develop standards and procedures for conducting seaport vulnerability assessments.

    The bill also requires each port authority and marine terminal authority with an established security vulnerability assessment to establish a maritime security program, and directs the Coast Guard and Maritime Administration to initiate a rulemaking including regulations to prevent acts of terrorism at ports.

    It would also include loan guarantees and grants for security infrastructure improvements.

    Young Skeptical

    While momentum for an Amtrak funding package is growing in the Senate, House Transportation and Infrastructure Committee Chairman Don Young (R-AK) gave the proposal a chilly reception, according to the Monitor. Saying that Amtrak will never experience self-sufficiency, he said that providing funding to the company "is not a priority for me right now."

    There is a possibility that rail funding will be included in economic-stimulus legislation (see related article).


Young Introduces Aviation Security Bill


    House Transportation and Infrastructure Committee Chairman Don Young (R-AK) this week introduced a bill giving the administration authority to determine federal involvement in security screening, which differs from the full federalization of screeners included in the measure unanimously approved by the Senate last week.

    Young introduced his bill with Rep. John Mica (R-FL), who chairs the Aviation Subcommittee, on Wednesday. The bill would provide federal oversight of the nation's airline security screening programs, law enforcement personnel at every airport screening location, and additional federal marshals on commercial airlines.

    The federal role in airport screening operations continues to be the major sticking point in moving legislation to revamp aircraft and airport security. Chairman Young's allows the administration to determine the extent of federal personnel that are used at airports, and allows the use of contracts with private screening companies. Stricter standards for screeners are required, as is federal supervision of the screening process, background checks, testing and oversight.

    The bill differs substantially from S. 1447, which was unanimously passed by the Senate last week. That bill calls for full federalization of airport security screening personnel and operations, which has the support of House Transportation and Infrastructure Ranking Member James Oberstar (D-MN).

    The bill includes a fee to be charged on each one-way trip to help pay for the screening activities. The fee would be capped at $2.50 per trip.

    In a statement Rep. Young said, "Let me make this clear -- this is not about federal versus non-federal employees. It's about the best possible security for the traveling public."

    Young's bill also provides the following:

    • Establishes a new Transportation Security Administration within the U.S. DOT which is responsible for all modes of transportation;
    • Requires federal or state law enforcement personnel at each screening location, not only at each airport;
    • Requires the deployment of additional federal air marshals, and reinforced cockpit doors; and
    • Authorizes additional funding and provides flexibility in the use of Airport Improvement Program (AIP) and Passenger Facility Charges (PFC) funds for increased security, and to assist general aviation airports affected by the recent restrictions in Visual Flight Rule (VFR) flights in Class B airspace.

Third Continuing Resolution Passed


    While two spending bills have been cleared by the House and Senate, slow work on the remaining spending and economic stimulus proposals has forced Congress to pass a third continuing resolution.

    This week's early shutdown of the House of Representatives to inspect offices for the possible presence of anthrax spores threw the congressional schedule into further disarray. To date, of the 13 FY 2002 spending bills, only the Department of the Interior and military construction measures have been cleared by both chambers and await a signature by the president. A third continuing resolution was passed on October 11 to keep government operations going through October 31.

    The remaining spending bills are currently pending in the Senate. Senate Republicans have threatened to hold up consideration of the remaining appropriations measures until judicial nominations are brought to the floor for a vote.

    At the same time, no progress has been made on the FY 2002 transportation appropriations bill, with restrictions on the operation of Mexican-owned trucks remaining unresolved.

    OMB Looking to FY 2003

    Mitch Daniels of the Office of Management and Budget has been hinting that the administration will seek to rein in spending in FY 2003. In remarks to a Schwab Capital Markets symposium, Daniels maintained that the September 11 terrorist attacks have created a "springtime for spenders," and indicated that the administration would seek to at least freeze spending for federal activities that are not security-related in FY 2003.

    In the days before the attack, OMB sent a memorandum to the federal agency heads directing them to identify program and operations reductions to achieve a 5 percent budget cut in FY 2003. Administration officials told the Washington Post that the memorandum remains in effect.


Garvey Addresses Airline Security


    Federal Aviation Administrator Jane Garvey told the National Press Club this week that the agency is working to create a "seamless web of security" to restore confidence in the safety of air travel.

    Garvey told reporters that "It is a new world for this industry and our nation . . . We cannot regain our innocence we lost on September 11, but we will - we must regain confidence in the safety of air travel. Aviation is too important to our nation, our economy and our way of life."

    Garvey outlined the multiple levels of response being pursued by the FAA and the airline industry, including:

    • Early identification and prevention of potential threats, including shared information, background checks on employees, and longer-term a database of information on passengers;
    • Screening to prevent access to airplanes, including new devices to detect weapons and explosives; and
    • Prevention of unauthorized access to aircraft cockpits.

    She noted that Secretary of Transportation Norman Mineta has created a $20 million grant program to test new technology for aircraft security. Applications from 13 airlines have already been received. Also adding to security is the dramatic expansion of the air marshal program, she said.

    Garvey concluded "Americans have long known that 'eternal vigilance is the price of liberty'. Now, we know, it is the price of mobility."


FHWA Releases Proposed Rule for Design-Build Contracting



National Summit on Transportation Operations Explores Reauthorization

    Over 200 state and local transportation officials, consultants, and academics met on October 16-18 in Columbia, Maryland to develop potential actions and reauthorization suggestions to advance a focus on transportation operations.

    The attendees suggested a wide range of possible follow-up actions including leadership training, development of national, regional and local performance measures, holding a summit on incident management, enhancing traveler information through all media, and, developing the means to bring public safety and transportation partners to the table.

    The attendees suggested possible reauthorization proposals including: rewriting of 23USC23 and 23USC49 to make operations spending easier and to ensure flexibility in spending. They also discussed creating a new funding program a homeland security program; creating incentives or special funding for comprehensive data collection and use of performance measures; requiring or establishing incentives for the creation of transportation operations plans in metropolitan areas; and creating a new formula program system management infrastructure.

    Federal Highway Administrator Mary Peters closed the conference by emphasizing the challenge of providing the mobility services the American people demand. She emphasized the need to reach out to the public safety community to develop strong incident-management programs. In terms of her priorities as administrator, she noted safety and security, provision of mobility, accountability and stewardship of the Federal-aid program, and development of a reauthorization proposal that provides broad flexibility and supports local decision-making.


Colorado DOT Faces Loss of $800 Million in Highway Improvement Funds


    Funds not restored during a recent special session of the Colorado Legislature will spur a loss of $800 million in highway improvement funds and the scrubbing of 73 planned roadway projects in the state, the Denver Post reported Thursday.

    "This is the most severe budget crisis we've ever faced," Colorado Department of Transportation spokesman Dan Hopkins said, noting the Colorado DOT is freezing employment and spending as a result.

    CDOT Finance Director Heather Dugan told the Colorado Transportation Commission on Wednesday that the agency did not receive $173 million in state transportation funding it was expecting this year; further, another $225 million may be lost next year if the legislature does not restore a key source of funds for transportation projects.

    The shortfalls also are likely to prevent the sale of another $409 million in transportation bonds the agency had planned to sell in the spring, Dugan said.

    To meet existing debt payments, CDOT proposes an austerity budget - providing for bridge repairs and snow and ice removal - that would cancel $144 million in regional highway improvement projects statewide and more than $6 million in maintenance funding on existing roads.

    Though the changes may delay by a decade or more planned expansion of Interstate 25 between Denver and Fort Collins, the shortfall should not slow down the $1.67 billion "T-REX" project, which will rebuild Interstate 25 through the Denver metro area and add more light rail in the corridor, Dugan said. But certain enhancements to the basic T-REX plan sought by local governments -- including several interchange improvements -- will not occur, Hopkins said.

    The financial curbs also will have fallout for transit in the Denver metro area. The Regional Transportation District proposes a $4.4 billion "FasTracks" plan to build new rail and express-bus transit corridors throughout the region; voter approval is needed for the sales tax increase that would be used to finance the work.

    But some of the transit corridors RTD proposes would need sizable highway improvements to accompany new rail lines, and CDOT Director Tom Norton told RTD officials he cannot support the transit buildout until he has a better estimate of CDOT's costs for the highway improvements that would accompany the transit lines.


Travel Business Roundtable: Travelers Still Wary, May Opt for Surface Modes


    A survey of 800 business and leisure travelers made the first week of October showed that nearly one-fourth remain wary of travel following the Sept. 11 terrorist attacks on New York's World Trade Center and on the Pentagon near Washington, D.C.

    The survey - of a sample half comprised of business travelers and half, of leisure travelers - was done by the Travel Business Roundtable, a group affiliated with the travel and tourism industries. Among other findings, it showed that 29 percent of those surveyed who had been planning to travel by air over the Thanksgiving holiday this year had opted instead to stay home or use surface transportation.

    Further, the survey found:

    • That one out of five people surveyed said they would urge close friends or relatives not to travel during the holidays;
    • That 30 percent of those surveyed who said they had changed their travel routines said it will take 6 months to a year for them to resume the travel patterns they had before Sept. 11;
    • That 25 percent said new security measures instituted since the attacks are not sufficient to restore their confidence in travel safety to the levels existing before Sept. 11;
    • That 79 percent of those surveyed said they believe another terrorist attack in the United States is likely.

    Jonathan Tisch, chairman of the survey-sponsoring group and also the Chairman and Chief Executive Officer of Loews Hotels, said the unease among travelers could prompt "billions of dollars in lost revenues for the industry."

    "Fewer people are traveling and they are spending less, resulting in hundreds of thousands of direct job losses, tens of millions of dollars in lost tax receipts for local and state governments" and even larger losses for the travel-related industries, he said.

    ATSSA: Work Zone Deaths Set New Record

    The year 2000 was the deadliest year on record in terms of work zone fatalities, statistics recently released by the National Highway Traffic Safety Administration show.

    During the year, NHTSA's Fatality Analysis Reporting System (FARS) reported there were 1,092 people killed in work zone crashes - a 25 percent increase over the 872 fatal work zone wrecks reported in 1999, which also was a record number.

    "This data drives home the need for training, the presence of law enforcement in work zones and better data collection," said Executive Director Roger Wentz of the American Traffic Safety Services Association (ATSSA), which with AASHTO and the Federal Highway Administration cosponsors National Work Zone Awareness Week, held yearly in April.

    The Subcommittee on Highways and Transit of the House Transportation and Infrastructure Committee held hearings on work zone fatalities last summer, hearing testimony from AASHTO President E. Dean Carlson and officials of several other construction-related groups.


Virginia DOT Secretary Ybarra Wins ARTBA Entrepreneur Award


    Shirley Ybarra, secretary of the Virginia Department of Transportation, is the recipient of the American Road and Transportation Builders Association's 2001 Public-Private Ventures (PPV) Entrepreneur of the Year Award.

    The award was presented during ARTBA's 13th Annual PPV in Transportation Conference, held October 10-11 in Washington, D.C. ARTBA's PPV in Transportation Division presents an annual award to individuals from the public and private sectors who have made outstanding contributions to the promotion of public-private partnerships that advance transportation infrastructure improvements.

    Ybarra, the public sector recipient, was appointed Virginia DOT secretary in 1998. She played a key role in winning legislative support in the Virginia General Assembly for Governor Jim Gilmore's Innovative Progress proposal, which provided for $3 billion for transportation infrastructure investment.

    As deputy secretary of transportation, Ybarra worked to craft and pass the landmark Public-Private Transportation Act of 1995, a first-of-its kind law that brought innovative financing for transportation infrastructure projects to Virginia, and became a model for other states.


ARTBA Conference to Focus on Clean Air



Mississippi DOT Plans Highway Safety Summit




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