The 111th Congress convened this week, and President-elect Barack Obama met with House and Senate leaders on Monday to discuss options for economic recovery legislation. The President-elect continues to express support for infrastructure investment in a stimulus bill, but this week Obama also emphasized tax cuts as a means to help the U.S. economy. The incoming Administration is reportedly considering a stimulus plan valued at approximately $775 billion, a considerably larger package than the $61 billion stimulus bill passed by the U.S. House of Representatives in September. With regard to infrastructure, the President-elect released a preliminary plan that calls for $25 billion in immediate investment in a variety of infrastructure activities and $60 billion in new transportation investment under a proposed National Infrastructure Reinvestment Bank, an element of the Obama-Biden campaign platform.
The Obama principles will likely be reworked significantly as Congress develops legislative proposals, and specific funding levels for public transportation are expected to be included. APTA has identified $47.8 billion in transit needs that could be met in a two-year stimulus bill, and the APTA economic stimulus survey has indentified more than $12 billion of “ready-to-go” projects that could be advanced in fewer than 90 days. According to U.S. Department of Transportation estimates, if $47.8 billion were invested in public transportation immediately, more than 1.3 million green jobs could be supported in the next two years. The President-elect and several key members of Congress have stated that infrastructure spending will not be earmarked, indicating that formula funding will likely be a large component of any public transportation or highway spending in a stimulus bill, but some proposals have included funding for new starts/small starts and it is not yet clear how those funds would be distributed.
In anticipation of the next stimulus bill, Chairman James L. Oberstar of the House Transportation and Infrastructure Committee unveiled an $85 billion infrastructure proposal on December 18. Under the Chairman’s proposal funding would be made available for “ready-to-go” projects at the following levels: $12.5 billion for public transportation, $30.5 billion for highway infrastructure, $3.4 billion for high-speed and intercity rail, $1.5 billion for Amtrak, and remaining funds would be provided for aviation, federal buildings, projects of the Army Corps of Engineers and other infrastructure investment. While limited details are available, grant recipients would be needed to obligate funds or execute contracts very quickly with some of the new funding and funds could be reapportioned if they are not spent within certain timeframes. Chairman Oberstar has stated that the Federal Transit Administration and the other U.S. DOT modal administrations would be asked to expedite the grant making process to facilitate quick investments.

For public transportation investment, Chairman Oberstar’s proposal bears strong resemblance to the stimulus bill, H.R. 7110 that passed the House in the last Congress, but which was not inacted into law. $7.5 billion would be available for capital grants under the urban and rural formula programs and $2 billion would be available for transit energy grants to assist transit systems with operating and capital expenses related to increased fuel costs, service expansion and the prevention of fare increases. Chairman Oberstar has also proposed $2.5 billion in supplemental funding for the New Starts and Small Starts programs, an element not included in the prior House stimulus bill. The proposal also has a new recommendation of $3.4 billion for competitive high-speed rail grants under a program authorized by the Amtrak/Rail Safety legislation (Passenger Rail Investment and Improvement Act of 2008, Division B of P.L. 110-432).
While the Oberstar proposal would provide valuable new investment, the final version of stimulus legislation could be more or less favorable to transit as House and Senate Democratic leaders and the incoming Obama administration begin to formulate legislative details. At present, funding levels have not been set by Congressional leaders for either a Senate or House proposal. It is essential that APTA members continue to contact their Representatives and Senators to make the case for transit investment in economic recovery legislation. APTA staff will continue to discuss stimulus proposals with Congressional staff and transition officials for the incoming Administration in the coming weeks. Congressional leaders now expect a stimulus bill to be completed before the President’s Day recess which is scheduled to begin on Friday, February 13. Final action on the unfinished Fiscal Year 2009 appropriations bills, including the Transportation Appropriations bill, could be delayed until late February or March until economic recovery legislation is enacted.

ACTION ALERT
• Call your Senators and Representatives and urge them to support public transportation investment in stimulus legislation.
• Point out that if $47.8 billion were invested in public transportation immediately, more than 1.3 million green jobs could be supported in the next two years.
• Discuss your transit system’s needs for assistance. Explain how shortfalls in state and local transit revenues affect your ability to serve your riders and remind them about ridership gains at both the local and national level.
• Cite specific examples of “ready-to-go” transit projects in your area.
• Explain that public transportation and all forms of intercity rail are integral elements of our nation’s surface transportation system and that they can advance national goals and help produce “green” jobs.

In Lansing and parts of Ingham County, CATA finished with a resounding victory for their additional 0.787 mill proposal for 5 years. The final tally was “yes” 71,009 or 64% approval and “no” 39421 or 36%. CATA had said if the millage failed there would be significant evening and weekend service cuts in the future. Last year voters had rejected a similar but larger millage question.

In Kalamazoo County, a first-time countywide millage proposal failed to garner support, losing by a margin of 58% to 42%, “no” voters with 69,993 and “yes” voters at 50,635. Approximately two years ago the Kalamazoo County public transportation service and Kalamazoo Metro Transit were merged into one system.

Other results in Michigan found voters in Midland County approving millage for the County Connection by a margin of 55% to 45%, “yes” 22,093 and “no” 18,144. Neighboring Arenac County, meanwhile, rejected a county millage for public transportation service there by a 63% to 37% margin, “no” 4889 to “yes” 2901. Arenac County service is provided by an operating agreement in conjunction with Bay Metro Transit.