Congress Calls it Quits Until After Election

Legislative Update

October 24, 2002

Lame Duck Session Planned

Facing pressure from Senators on both sides of the aisle, Senate Majority Leader Tom Daschle last week agreed to recess the Senate until after the elections. The House had previously agreed to recess for the elections. Both Houses of Congress will be in pro forma session, subject to the call of the Chair, until November 12, when they plan to return for a lame-duck session.

Consequently, the House and Senate last week approved a new continuing resolution (CR), which provides funding at the FY 2002 level for most federal programs including the federal transit program through November 22.

In both the House and Senate, the FY 2003 Transportation and Related Agencies Appropriations bills that provide funding for the federal transit program have been approved by the respective Appropriations Committees, but not yet considered by the full House or Senate. (See discussion below of House Committee action on the bill.) Under the normal process, each House votes on separate bills approved by its own Appropriations Committee, and the separate bills are then merged into a compromise House/Senate conference agreement that must again be approved by each House of Congress before being sent to the President and signed into law.

Until the regular FY 2003 transportation appropriations bill is passed, transit programs are funded at the FY 2002 level under the CR. However, the FTA is not expected to distribute transit funds under the short-term CR, but rather will await Congress return after the elections when a bill or longer term CR is likely to be enacted.

Political Gridlock Dominates Agenda

With very slim majorities by opposing parties in the House and Senate, a flagging economy and mid-term elections that could affect those majorities, Congress has struggled to achieve legislative consensus throughout the past year.

At this stage, Congress has been able to pass only two of the 13 regular appropriations bills. It has not been able to agree on a budget resolution, creation of a Department of Homeland Security, a comprehensive energy policy, election reform, or terrorism insurance.

House Appropriations Committee Passes DOT Appropriations Bill; Federal Transit Program to Receive $7.226 Billion

House Committee Approves Transit Funding at Guaranteed Level

The House Appropriations Committee approved the FY 2003 Department of Transportation Appropriations bill October 1. The bill funds the federal transit program at $7.226 billion, the guaranteed amount under the Transportation Equity Act for the 21^st Century (TEA 21). The Senate version, approved by the full Senate Appropriations Committee in July, provides $100 million more than the guaranteed funding, with that $100 million directed to the new starts program.

Program	FY 2002 Appropriations (Millions)	FY 2003 Senate Committee (Millions)	FY 2003 House Committee (Millions)
Capital Investment (a)	2,841.0	3,136.0	3,036.0
New Starts	1,136.4	1,314.4	1,214.4
Fixed-Guideway Modernization	1,136.4	1,214.4	1,214.4
Bus and Bus Capital (a)	568.2	607.2	607.2
Formula Funds (b)	3,592.0	3,839.0	3,839.0
Urbanized Area	3,216.0	3,445.9	3,428.7
Rural	224.6	240.6	239.4
Elderly and Disabled Persons	84.6	90.7	90.7
Clean Fuels (b)	50.0	50.0	50.0
Paralympic Games	5.0	---	---
Alaska Railroad	4.8	4.8	4.8
Over-the-Road Accessibility	7.0	7.0	7.0
Oversight (c)	---	---	18.4
Job Access and Reverse Commute	125.0	150.0	150.0
Planning and Research	116.0	122.0	122.0
University Transportation Centers	6.0	6.0	6.0
FTA Administration	67.0	73.0	73.0
TOTAL	6,747.0	7,326.0	7,226.0

Does not include $50 million transferred from "Formula Clean Fuels" to "Bus and Bus Capital."
Includes $50 million authorized for "Formula Clean Fuels" and transferred to "Bus and Bus Capital."
Oversight funds are included in the Urbanized Area and Rural formula programs in FY 2002 Appropriations and FY 2003 Senate Committee amounts.

The Committee rejected an amendment offered by Representative Sabo that would have increased Amtrak funding to the $1.2 billion Amtrak says it needs to continue operating through FY 2003. The Administration requested $521 million for Amtrak while the Senate Committee-approved bill funds Amtrak at $1.2 billion. The House bill includes $762 million for Amtrak.

The Committee did approve an amendment offered by Subcommittee Chairman Hal Rogers that strikes language in the committee draft that would have eliminated federal funding, as of July 1, 2003, on any Amtrak long-distance route where the per passenger per trip loss exceeded $200. This language was replaced with a provision that limits federal assistance for Amtrak's long distance network of routes to $150 million.

The House bill includes amended language that would authorize the federal Surface Transportation Board (STB) to direct the continuation of commuter rail service in the event of a cessation in services provided by Amtrak. The bill also provides $8 million for a grant to a public body to demonstrate the use of a compliant diesel multiple units (DMU) rail car in daily revenue service in calendar year 2003. Funds are to be matched by non-federal sources.

On a party-line vote, the Committee rejected an amendment to add more than $4 billion to the $27.7 billion recommended by the Committee for highway spending in FY 2003. Subcommittee Chairman Rogers stated that the House bill simply could not afford the additional funding. The Senate bill includes $31.8 billion for highways.

A list of earmarks for both the House and Senate is posted on APTA's website at http://www.apta.com/. Click on Government Affairs; then Appropriations for the October 17, 2002 listing.

Other Legislative Updates

Congress Votes to Restore Short-Term Highway Funding within CR

As part of the CR, and after ongoing negotiations, Congress passed a provision designed to ensure that, for the duration of the CR, Federal-aid highway programs will be sustained at a funding rate based on the amount of money the programs received last year--$31.8 billion, but with a cap on obligations of $27.7 billion. This effort was necessary because a RABA shortfall has lowered highway funding levels, and the Administration's budget proposed to fund the highway program at levels significantly lower than the FY 2002 level.

Because of confusion about the provision - whether the $31.8 billion or $27.7 billion level applied - OMB was asked to provide its opinion on the issue. A letter from OMB Director Mitch Daniels concludes that the effect of the provision is to provide highway funding at the same level as that enacted in FY 2002 - that is, $31.8 billion, which will apply until the final FY 2003 funding level is determined in the context of the House, Senate and Administration negotiations of the FY 2003 Transportation Appropriations bill.

Bill for Transit Systems Affected by Census

On October 1, the President signed into law a bill (P.L. 107-232) that permits transit systems in UZAs that moved from under 200,000 in population to over 200,000 to continue using federal funds for operating expenses at FY 2002 levels. APTA urged both the House Transportation and Infrastructure Committee and the Senate Banking Committee to support this legislation. The law applies only to FY 2003 funds.

Expedite Bill Introduced

Chairman Don Young of the House Transportation and Infrastructure Committee introduced the "Expediting Project Delivery to Improve Transportation and the Environment Act" (H.R. 5455). The bill would streamline the federal review of projects and make a number of changes to federal transit law that have been sought by APTA. According to Chairman Youngs staff, the bill is a first step in addressing delays in transit and highway projects, and will be further considered next year.

APTAs President Bill Millar testified on the measure before the Transportation and Infrastructure Subcommittee on Highways and Transit on Tuesday, October 8. The testimony is posted on APTA's website at http://www.apta.com/. Click on Government Affairs; Current APTA Positions; then Testimony.

TANF Reauthorization

Regarding reauthorization of Temporary Assistance for Needy Families (TANF) legislation, the Senate Finance Committee marked up its version, "The Work, Opportunity, and Responsibility for Kids (WORK) Act" of 2002 on June 25. Provisions in the Senate bill would improve coordination between health and human service providers and transportation agencies and reduce requirements that inhibit flexibility, innovation, and successful expansion of transportation options for low-income people. The House passed its version, the Personal Responsibility, Work and Family Promotion Act of 2002, on May 16. The CR extends TANF reauthorization through December 30, 2002. Congress is unlikely to complete work on TANF reauthorization during the lame duck session, and APTA will to press for provisions favorable to transit when TANF reauthorization is taken up next year.

Rail Update

Highway funding is not the only issue that House and Senate appropriators will have to work out on a final Transportation Appropriations bill, even if it is done as part of a larger omnibus-spending bill. Differences between the House and Senate versions of the Federal Railroad Administrations budget involve Amtrak funding levels. The House includes $762 million for Amtrak; the Senate provides $1.2 billion. Amtrak President David Gunn has indicated that Amtrak will need a $1.2 billion appropriation in FY 2003 to continue service. The current CR that expires on November 22 will fund Amtrak at a level of $1 billion until such time as a new appropriations bill is enacted.

Other differences between Senate and House versions of the bill include language in the House bill that would authorize the federal Surface Transportation Board (STB) to direct the continuation of commuter rail service in the event of a cessation in services provided by Amtrak. The bill also provides $8 million for a grant to a public body to demonstrate the use of a compliant diesel multiple units (DMU) rail car in daily revenue service in calendar year 2003. Funds are to be matched by non-federal sources.

Of Interest: Recent Hearings

House Subcommittee on Highways and TransitConditions and Performance Report

The House Subcommittee on Highways and Transit held a hearing on September 26 on the "Status of the Nations Highway and Transit Systems: Capital and Maintenance Needs." The Secretary of Transportation submits to Congress every two years a report that describes "estimates of the future highway, bridge and transit needs" known as the Conditions and Performance Report. The purpose of the hearing was to have FHWA, FTA, and GAO testify on the report. The Administration is still working on the report and has not released the final version.

Robert Jamison, Deputy Administrator of the FTA, testified on the findings of the 2002 report, which has not yet been formally released. He stated that in estimating transit's long-term investment requirements, $14.84 billion per year is needed to maintain transit. The cost to improve transit is estimated at $20.62 billion per year according to the report. FTA Administrator Dorn also discussed transit needs at a Senate Banking Committee hearing (see below).

Senate Banking CommitteeTransit Needs

The Senate Banking, Housing, and Urban Affairs Committee held a hearing on October 8 on transit needs and how those needs may be addressed in next years development of legislation reauthorizing programs currently funded under TEA 21. Senator Paul Sarbanes (D-MD), Chairman of the Committee, noted that the increased investment provided under TEA 21 had paid off in terms of increased ridership, service, and quality of life improvements.

Witnesses before the committee included FTA Administrator Jenna Dorn, Mayor Patrick McCrory of Charlotte, N.C., Eric Rodriquez of the National Council of La Raza, David Winstead on behalf of the U.S. Chamber of Commerce, Wendell Cox on behalf of the Heritage Foundation, and Roy Kienitz from the Maryland Department of Planning. Senators Jack Reed (D-RI), Jon Corzine (D-NJ), and Thomas Carper (D-DE) all participated in the hearing.

The Administrator acknowledged that the Bush Administration would propose to reduce the federal match on new start projects from the current level of 80% to 50%. The Administrator also said that guaranteed funding had been one of the key successes of TEA 21 and that the Administration would seek to retain guarantees. FTA Administrator Dorn was questioned on the pending DOT Conditions and Performance Report. Ms. Dorn stated that the transit needs assessment to improve transit was $20.62 billion a year but noted that the needs assessment for transit is based on a ridership growth rate of 1.6% annually, despite significant growth over the past six years, and did not account for costs associated with increased security needs. Note that adjusting the FTA transit needs improvement analysis for 2003 dollars, and including annual ridership estimates of 4.5 percent, results in a $32.6 billion a year needs amount. Further, the recently issued AASHTO Bottom Line Report quantifies the annual need to improve transit at $43.9 billion. This hearing may be viewed at the Senate Banking Committee's website, http:/banking.senate.gov/.

APTA Info

Reauthorization Task Force Proposal Approved

At APTAs Annual Meeting and Expo in Las Vegas on September 22, the Legislative Committee and Board of Directors unanimously approved the Reauthorization Task Forces TEA 21 reauthorization recommendations. The proposals recommend that the federal transit program grow from $7.2 billion in FY 2003 to $14.3 billion over the six-year life of the next reauthorization bill. The proposals also support maintaining the funding guarantee and contain some forty proposals to improve program delivery. A colorful brochure summarizing the APTA proposal is now available.

APTA Legislative Committee to Meet December 6

APTAs Legislative Committee is scheduled to meet in Washington, D.C. on Friday, December 6. While the agenda has not yet been finalized, the Committee will likely receive a report from the Reauthorization Task Force Working Group on Revenue, Finance, and Program Support, which is chaired by Task Force Co-Chair Alan Wulkan; review the results of congressional elections; and strategize on the upcoming reauthorization of TEA 21 and other legislative issues in the year ahead. The Working Group on Revenue, Finance, and Program Support has been meeting regularly since September via conference call to develop options for financing APTAs Reauthorization Proposal.

For further information, contact Tom Yedinak at (202) 496-4865 or tyedinak@apta.com.