New Legislation

Legislative Update

January 10, 2002

FY 2002 DOT Appropriations a 7.8% increase for transit

On December 18 the President signed into law the FY 2002 DOT Appropriations bill (P. L. 107-87). The bill provides $6.7 billion for transit, a 7.8% increase over the prior year's funding. In passing the increase Congress maintained the guarantees provided under the Transportation Equity Act for the 21st Century (TEA 21). Within the Federal Highway Administration program, the ongoing battle between appropriators and authorizers continues appropriators earmarked some $450 million from state apportionments and Revenue Aligned Budget Authority (RABA) funds for specific transportation projects, including approximately $16.2 million for transit-related projects. The bill does not fund the President's New Freedom Initiative, which sought some $145 million for specialized transportation activities for persons with disabilities. The FTA published its FY 2002 apportionment notice on January 2, which includes the allocation of new funds, including earmarks, as well as reallocation of unobligated funds. The FTA notice can be found at http://www.fta.dot.gov/.

Railroad Retirement Legislation

On December 21 the Railroad Retirement and Survivors' Improvement Act of 2001 was signed into law by the President (P. L. 107-90). The legislation is intended to lower taxes for railroad employers and expand benefits for workers and retirees through a combination of higher investment earnings -to be gained through investment of a portion of the Railroad Retirement Trust Fund in the stock market -and use of some portion of growing cash reserves. For more information, see http://www.aar.org/.

Defense Appropriations Bill

Conferees on the Defense Department Appropriations bill (H. R. 3338) finished their conference on December 18 and both chambers approved the conference report on December 20. The bill was signed by the President today. The DoD bill includes a title governing the distribution of the second $20 billion in supplemental funds for security and recovery items related to the September 11 attacks.

In addition to providing funding for WMATA and New York area transit agencies, the bill has funding for other transit needs as well:

$23.5 million is to be made available by FTA to respond to the 9/11 terrorist attacks, although FTA has not yet decided how these funds are to be allocated. Report language suggests the funds are to be distributed generally as follows: $4.8 million for replacement of buses and transit kiosks lost on 9/11 in New York City, $5.2 million for the development of security and emergency response plans, $4.0 million for chemical and biological detection programs, $4.5 million for emergency response drills with transit and first response agencies, and $5.0 million for security training for transit operators;
$39.1 million for WMATA, of which $5 million is for masks and clothing, $17.2 million is for completion of fiber optic network & AVL system, and $16.9 million is for increased employee & facility security;
$100 million under the FTA Capital Investment Grant program for New York area transit agencies impacted by 9/11, with the local match waived.

New Undersecretaries at DOT

Undersecretary of Transportation for Security

The Aviation and Transportation Security Act (P. L. 107-71) created a new Transportation Security Administration within DOT, to be headed by an Undersecretary, with jurisdiction over all modes of transportation. The Undersecretary reports to the DOT Secretary. Nominee John Magaw, a former head of both the Secret Service and the Bureau of Alcohol, Tobacco, and Firearms, who had a Senate Commerce Committee confirmation hearing last month but was never voted on by the Senate, was installed on January 7 by President Bush as a recess appointment.

Undersecretary of Transportation for Policy

New legislation sought by DOT and introduced by House Transportation and Infrastructure Committee Chairman Don Young (R-AK) would establish an Undersecretary of Transportation for Policy at DOT. Intended to realign policy responsibility in the Department of Transportation, the bill (H. R. 3441), aims to unite the policy arm of DOT, currently spread among three offices. The consolidated policy head would enable the DOT to develop comprehensive, sound and interrelated transportation policies, and should further enhance balanced decision making at the federal level. The legislation also creates an Assistant Secretary for Public Affairs. The House passed the bill on December 11 and now awaits consideration in the Senate.

The Year Ahead

Congress & the Budget Outlook

The House and Senate adjourned on December 20 and will reconvene January 23 for the 2 nd Session of the 107 th Congress. At the close of the 1 st Session, many legislative agenda items were left unresolved and are expected to be considered during the 2 nd Session. These include: election reform, the President's faith-based initiative, a farm bill, energy legislation, a patients' bill of rights, stem cell research, and economic stimulus (see below).

The FY 2003 formal budget release process begins with the President's State of the Union address on January 29. His budget request is due to Congress the first Monday in February.

Economic Stimulus Action

The outlook for an economic stimulus package in the second session of the 107 th Congress remains cloudy. Before the holiday recess, House and Senate lawmakers negotiated further over the details of a compromise. The House-passed bill provided tax relief. The Senate did not pass a measure. The stumbling block proved to be health insurance for unemployed workers: Republicans favor tax credits, while Democrats prefer COBRA coverage. Once Congress reconvenes, it is uncertain whether the Senate and House negotiators will be able to reach a compromise. Senate Majority Leader Tom Daschle has already put forth an alternative plan, focused on tax credits for companies generating new jobs and tax write-offs for some percentage of investments during the year. APTA continues to work with transportation groups to urge that any economic stimulus legislation approved by Congress include transit and highway funding.

Reauthorization Update

The full APTA Legislative Committee and the Funding Subgroup of the Reauthorization Task Force met in Washington, D. C. on December 6 and 7. The three subgroups of the Task Force National Purpose, Policies & Procedures, and Funding have been meeting over the past several months and are refining further their recommendations. The full Reauthorization Task Force will meet on February 22 in Phoenix, AZ. For further information on the Task Force, please contact Rob Healy at rhealy@ apta. com or at (202) 496-4811.

Upcoming Meetings

Legal Affairs Seminar February 10-12

This forecast calls for sunny skies, legislation, and litigation: Attorneys representing APTA members will convene in Monterey, CA on February 10-12 to discuss and exchange current information on regulatory and legislative developments, industry-related litigation, and other legal issues affecting transit operators. For more information about the Legal Affairs Seminar, please contact Kristin O'Grady at kogrady@apta.com or at (202) 496-4808.

Legislative Conference March 10-13

Storm the Capitol: Board members, policymakers, transit operators, consultants, manufacturers and suppliers, government relations staff, and local coalition members will converge on Washington, D. C. on March 10-13 for APTA's 27 th Annual Legislative Conference. The Conference, offers many opportunities for APTA members, including: providing input on APTA legislative strategies, learning about the latest transit-related developments in Congress, listening to national leaders, DOT modal administrators, and Members of Congress discuss the challenges they face in adequately funding public transportation needs, and visiting elected officials on Capitol Hill to seek their support for the transit program as we approach reauthorization. For more information on the Legislative Conference, please contact Margaret Mullins at mmullins@apta.com or at (202) 496-4827.

For further information about any issues in the APTA Washington Report, please contact Genesee C. Adkins at (202) 496-4810 or at gadkins@apta.com.