Senate Appropriators Would Fund FTA at $7.3 Billion in '03

Legislative Update

August 1, 2002

Senate Appropriations Committee Approves Transit Funding Above Guaranteed Level!

On July 25, the Senate Appropriations Committee unanimously approved a Fiscal Year (FY) 2003 Transportation and Related Agencies Appropriations bill that provides $7.326 billion for transit programs. That amount is $455 million above the FY 2002 enacted level. Most significantly, the measure provides over $100 million more than the amount guaranteed under the Transportation Equity Act for the 21st Century (TEA 21) for FY 2003. It specifies that the $100 million increase is for new starts projects. The bill had been approved by the Senate Transportation Appropriations Subcommittee on the previous day. The full Senate is not expected to take up the measure until after the Senate returns from the August recess in September. The House has not acted on its version and is expected to take action on the measure after the August recess.

The following table compares the enacted FY 2002 transit funding levels with FY 2003 funding proposed by the Senate:

Capital and Formula Grants

While the Senate bill funds most Federal Transit Administration (FTA) programs at the levels required by TEA 21, it funds the new starts program at $1.314 billion, which is $100 million more than the guarantee. This brings the Capital Investment Grant program up to a $3.136 billion level. The legislation provides this additional funding for the new starts program from general funds, which are authorized but not guaranteed under TEA 21. The bill provides $1.214 billion for the Fixed Guideway Modernization program and $607.2 million for Bus and Bus Facility grants. Formula Grants get $3.839 billion, as requested and required, but with $50 million set aside for clean fuels transferred to Capital Grants for buses and bus facilities.

The appropriations bill approved by Committee also contains language which is almost identical to H. R. 5157 (described further on the next page), which would allow transit systems in urbanized areas that, for the first time, exceeded 200,000 in population according to the 2000 Census to retain the flexibility to use Federal transit formula grants for operating purposes in fiscal year 2003.

Other Funding

The rest of the FTA accounts are at the requested levels: $73 million for administrative expenses, $6 million for university transportation research, $122 million for transit planning and research, and $150 million for job access and reverse commute grants.

In addition, the Senate appropriations bill would keep the highway obligation ceiling at the current $31.8 billion, which exceeds both the $23.3 billion Bush request and the $27.7 billion that would result from the highway funding restoration provision in the emergency supplemental (see next page).

Amtrak would receive $1.2 billion in funding grants, the amount requested by Amtrak for continued operation of its current service through the end of FY 2003. The bill does not include reforms sought by the Bush Administration, and amendments are likely when the bill is taken up by the full Senate. Furthermore, Amtrak also received $205 million from the emergency supplemental (see next page) for continued operations through the current fiscal year, ending September 30, 2002.

The Senate bill does not include the Administration's proposal for rail safety user fees. Included in the appropriations for the Federal Railroad Administration are:

funds for 20 addidional railroad inspectors;
a requirement for FRA to submit an economic analysis of Positive Train Control to document the cost savings that might be realized by carriers, shippers and passenger trains;
a directive for FRA to conduct studies of rail congestion and capacity in Chicago and Seattle.

Review the Full Text of the Legislation Online

For the full text of the legislation or the Committee report (including earmarks), use your web browser to go to http://thomas.loc.gov/. At the top of the page, note the box for searching by bill number. Type "S. 2808" for the Senate bill and hit the Search button. After the page loads, at the top you will find a box in the center that says "Link to Senate Committee Report 224." Choose this link for the full text of the Committee report.

Other Legislative Updates

2002 Emergency Supplemental Spending Bill

Call to Action

With the reauthorization of TEA 21 approaching, APTA members should invite U. S. Senators and Representatives to their properties to see the results of TEA 21 investments.

After weeks of negotiations, House and Senate conferees arrived at a compromise on H. R. 4775/ S. 2551, the FY 2002 Supplemental Appropriations bill. The $28.9 billion package -- $1.8 billion over the President's request -- contains $6.4 billion for the Department of Transportation. Some provisions of interest include:

A Revenue Aligned Budget Authority (RABA) restoration that would raise the FY '03 Federal Highway Administration (FHWA) funding level to $27.7 billion, the guaranteed level under TEA 21;
A $205 million appropriation for Amtrak, to cover operations through the close of fiscal year 2002 and to cover repayment of its recent $100 million loan;
$1.8 billion for FTA, for reconstruction of the New York City subway, which was damaged by terrorist attacks;
A $320 million rescission of highway contract authority already apportioned to the states;
$3.85 billion for the Transportation Security Administration, though $1.03 billion of that amount is directed to be immediately transferred back to FEMA.

During the deliberations over the additional funding for Amtrak, APTA's commuter rail members were effective in emphasizing to Congress and the Administration that many commuter railroads would be adversely affected by any disruption in Amtrak service, impacting far more commuters than Amtrak riders.

Congressional negotiators worked with the White House to arrive at an agreement. Both original versions (H. R. 4775/ S. 2551) far exceeded the President's March 21 request. President Bush had threatened to veto any supplemental spending bill that exceeds $27.1 billion. The conference report (H. Rept. 107-593) was passed by the House on July 23 and passed by the Senate on July 24. The bill now awaits the President's signature.

Transit Minimum Allocation Bill to be Introduced by Senator Baucus

Senator Max Baucus, Chairman of the Senate Finance Committee, is expected to introduce legislation before the Senate breaks for its August recess that would establish state minimum allocations under the rural and small urban formula programs and the elderly and disabled program, in addition to other changes. The measure would establish separate state minimum allocations of $5 million per state (rising to $5.5 million in 2007) under both the rural and small urban formula programs. It would set a minimum of $1 million per state or double the FY 2003 apportionment (whichever is greater) under the elderly and disabled program for FY 2004 through FY 2006, with each state receiving an additional $500,000 by FY 2007. The measure would establish a new program, funded at $30 million annually in FY's 2004 though 2007 and $35 million annually in subsequent years, for essential bus service in rural communities to connect citizens with airports and passenger rail. Last week, APTA wrote to Senator Baucus (D-MT) expressing concerns about the minimum allocation aspects of the measure (a copy of the letter can be viewed on APTA's website, www. apta. com, under Government Affairs).

H. R. 5157 Flexibility for Growing Transit Agencies

On July 18, House Transportation & Infrastructure Committee Chairman Don Young (R-AK) introduced H. R. 5157, a bill to allow transit systems in urbanized areas that, for the first time, exceeded 200,000 in population according to the 2000 Census, to retain the flexibility to use a portion of Federal transit formula grants equal to their FY 2002 allocation for operating purposes in fiscal year 2003. In furtherance of actions by the APTA Legislative Steering Committee and APTA Executive Committee, APTA wrote in support of the bill (a copy of the letter can be viewed on APTA's website, www. apta. com, under Government Affairs). The full T& I Committee passed the bill out of committee on July 24. Similar language was also included in the Senate version of the FY 2003 Transportation and Related Agencies Appropriations Bill.

On Track: TANF Reauthorization

The Senate Finance Committee marked up "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. An APTA consultant helped secure the provisions favorable to transportation. The full Senate is expected to consider the bill after the August recess. The House passed its version, the Personal Responsibility, Work and Family Promotion Act of 2002, on May 16.

Rail Update Reauthorizing the Railroad Safety Act

The Administration has sent to Congress its legislative proposal to reauthorize the federal Railroad Safety Act. Titled the "Federal Railroad Safety Improvement Act" the bill would increase reporting on grade crossings, lead to regulation of high speed (over 150 mph) rail noise, provide greater discretion to the Secretary regarding accident and incident reporting, and give the Federal Railroad Administration (FRA) greater oversight of railroad communications.

FRA also announced on July 2 a $76 million grant to fund improvements to the Amtrak-owned tunnels leading to New York's Penn Station. The funds will be used to cover the costs of fire and life safety improvements in the aging tunnels. Work will include: structural rehabilitation; installation of modernized tunnel ventilation and communication systems; and improvements for emergency access and egress. Funding for the grant was appropriated by the 2002 Emergency Supplemental Spending Bill.

Reauthorization Task Force Update

APTA's Reauthorization Task Force met on Friday, July 26 in New York City and reached agreement on a number of important issues relating to industry recommendations on the upcoming reauthorization of TEA 21, which will expire on September 30, 2003. Among other issues, the Task Force agreed to recommend a minimum ratio of 1.15 to 1 between the transit formula programs and the major investment programs. It also reached agreement on a proposal to create an eighth tier on the fixed-guideway modernization program, under which new growth funds would be distributed on a 60/ 40 basis between the old cities and new cities. The complete recommendations of the Task Force will be sent to all members soon and will be presented to the APTA Legislative Committee and Board of Directors for review and action at the APTA Annual Meeting and Expo in late September in Las Vegas, Nevada.

Of Interest: Recent Hearings

Senate Environment and Public Works Committee The CMAQ Program

On July 29, the Senate Environment and Public Works Committee held a hearing on the effectiveness of the current Congestion Mitigation and Air Quality (CMAQ) Program. This is the Committee's eighth hearing in a series as it prepares to reauthorize TEA 21 next year. In testifying before the Committee, many of the witnesses, including FHWA Administrator Mary Peters and EPA Assistant Administrator Jeffrey Holmstead, stated that progress has been made in reducing transportation-related emissions of pollutants, and that the Administration is committed to doing its part to ensure progress continues. Michael Replogle of the Environmental Defense Fund echoed many of the witnesses who stated that the CMAQ program has been working well and should receive increased funding in the reauthorization of TEA 21. Read more about the Committee and its hearings at http://www.senate.gov/~epw/stm1_107.htm.

House T& I Highways & Transit Subcommittee Transportation in a Community Context

The House Highways & Transit Subcommittee met on July 25 to discuss how transportation systems affect the quality of life of all segments of the community. Witnesses represented a myriad of interests, including older Americans, schoolchildren, tourists, motorcyclists, and trail users. Chairman Tom Petri (R-WI) characterized the panelists as stakeholders in "a robust surface transportation system." Coordination of transportation services was a central theme, with AARP and Project ACTION witnesses noting the improved mobility and autonomy that community transportation brings to senior citizens and persons with disabilities. TRB spokesman James Fell described a study on school transportation safety in which transit and school bus were found to be the safest method and also called for better assessment of individual school district needs. Read more about the Committee and its hearings at http://www.house.gov/transportation/.

Senate Finance Committee Fuel Tax Fraud

On July 17, the Senate Finance Committee held its second hearing on transportation trust funds. The hearing was also the fourth in a series of hearings on schemes, scams and cons against the federal government. Witnesses described the history and effects of the different types of fuel tax fraud as well as the need to expand technology for monitoring carriers of jet and motor fuels. Panelists appealed for greater funding for enforcement officials at the IRS, state, and local levels. Chairman Max Baucus (D-MT) added that his bill, S. 2678, the Maximum Economic Growth for America Through the Highway Trust Fund Act or "MEGA Trust Act" would recoup for the Highway Trust Fund (HTF) both the interest and revenue for the losses due to the ethanol subsidy. Visit Senate Finance at http://www.senate.gov/~finance/sitepages/hearings.htm.

House T& I Highways & Transit Subcommittee Fuel Taxes & the Highway Trust Fund

The House Highways & Transit Subcommittee heard from two panels of witnesses on July 16 to examine the viability of the HTF and its current revenue sources in preparation for the reauthorization of TEA 21. With mandated increases in the use of ethanol, added production of fuel efficient vehicles, and potential future growth in vehicles that use non-petroleum based fuels, the HTF's ability to support the nation's road and transit systems becomes a serious concern. Witnesses explored a variety of funding alternatives, including indexing the federal motor fuel gas tax to the Consumer Price Index (CPI), transfer of the 2.5 cents per gallon tax on gasohol that currently goes to the General Fund to the HTF, annual increases in the gas tax, and user-based motor vehicle fees. Read more about the Committee hearings at http://www.house.gov/transportation/.

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.