September 27, 2001

The Honorable J. Dennis Hastert
Speaker of the House
Office of the Speaker of the House of Representatives
H-232 Capitol Building
Washington, DC 20515-6501

Dear Mr. Speaker:

On behalf of the American Public Transportation Association (APTA) and its 1400 member organizations, I commend Congress for its quick response to the horrific events of September 11, 2001.

As attention now turns to preserving the nation’s economic health, we understand that Congress is developing an economic stimulus package. In that regard, I call your attention to the significant unmet needs in the public transportation sector, where an infusion of additional investment could quickly be put to use. Currently, Congress is poised to appropriate up to $6.8 billion for the FY 2002 federal transit program. However, nearly an additional $1 billion in federal transit funding authorized by the Transportation Equity Act for the 21^st Century (TEA 21) for FY 2002 will remain available to be appropriated. Appropriating this $1 billion as part of any economic stimulus package would provide immediate economic benefits. In addition, another $3 billion in authorized but unappropriated TEA 21 funds from prior fiscal years could be made available.

Distributing $1 billion or more under the existing program mechanism would provide much needed capital for rolling stock and construction of new rail and bus systems, modernization programs and other transit facilities. Funds could also be made available for the expenses associated with enhanced security in public transportation systems.

Investment in public transportation produces many economic benefits:

• 31,000 to 57,000 jobs are created for each $1 billion spent, depending on whether capital or operating costs are funded;
• Businesses realize a gain in sales of $3 billion for every $1 billion investment in transit capital; and
• Several studies have shown a benefit to cost ratio as high as 9 to 1 in the federal transit program.

I would appreciate your consideration of the role that public transportation plays in providing a balanced transportation system. Transit ridership is up twenty-one percent over the past five years, as more and more Americans use the transportation choices our members provide. APTA firmly believes that an effective transportation system - which requires adequate investment in both transit and highways - is one of the most important underpinnings of a healthy, growing economy. If we may provide additional information, please have your staff contact Rob Healy of our Government Affairs staff at (202) 496-4811 or rhealy@apta.com.

Thank you for your consideration. We look forward to working with you in developing legislation to move America forward.

Sincerely yours,

William W. Millar
President