The Transportation Clock is Ticking: Impacts, Risks, and Solutions

APTA has produced a new web tool that clearly displays the costly impact a shut-down of the federal transit program would have by Congressional district.

The Environmental and Energy Study Institute (EESI) and the American Public Transportation Association (APTA) held a briefing about the looming expiration of the Transportation Bill. How does uncertainty over federal transportation funding put jobs and local economies at risk? What can be done to ensure stable, long-term federal investment in public transit, highways, and bridges? How can new information from APTA, which was released at the briefing, help us understand how the federal funding at risk impacts specific regions and the nation as a whole?

BRIEFING HIGHLIGHTS:

• Paul Balmer, Legislative Assistant, Rep. Earl Blumenauer (D-OR), emphasized the need to push for transportation action in Congress as the Federal Surface Transportation Bill expires in seven weeks [on May 31, 2015].
• Surface transportation funding will expire at the peak of construction season, and though communities and businesses need long-term funding to plan major infrastructure projects, Congress is likely to pass the 24th short-term extension since the last six-year transportation bill, the Transportation Equity Act for the 21st Century, expired in 2003. [The subsequent Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users and Moving Ahead for Progress in the 21st Century Act only covered four and two years, respectively].
• Balmer argued that we shouldn’t have to talk about the Transportation Bill every year. A long-term, fully funded Transportation Bill is critical to transit system operators and supply chains, local and state governments, and the nation’s economy.
• Congressman Blumenauer is standing up for transportation investments in Congress, with bills that would raise the gas tax for the first time in 21 years, by 15 cents over 3 years, and then index it to inflation. The gas tax would be replaced in ten years with a user fee based on vehicle miles travelled.
• Another revenue solution would be to tax corporate earnings that are currently sitting overseas (they would benefit from a lower tax rate in exchange for repatriation). Congressman Delaney’s bill, which has widespread bipartisan support, includes this solution. Congressmen Pascrell and Renacci have proposed indexing the gas tax and establishing a Congressional task force to decide on a long-term, efficient, equitable funding source.
• Pressure is building for Congress to act decisively, and the national movement on Stand Up for Transportation Day is part of that.
• Michael Melaniphy, President and CEO, American Public Transportation Association (APTA), discussed the economic impacts that would occur if the Surface Transportation Bill is not renewed.
• On April 9, 2015, as part of Stand Up For Transportation Day, more than 140 events sponsored by over 300 organizations are being held in cities large and small in almost every state in the nation. Thousands are calling on Congress to pass a long-term, well-funded surface transportation bill.
• Failure to act would cost the U.S. economy $227 billion, and lead to a 43 percent reduction in communities’ overall capital funding investment.
• Two bills propose removing mass transit funding from the Highway Trust Fund. Projects which act as catalysts for economic development in their regions would be at risk (see here which ones in your district NOTE: APTA link).
• 73 percent of the transportation funds provided by local, state, and federal government flow to the private sector, creating jobs nationwide—often in rural areas.
• Public transit use has grown faster than the U.S. population: last year, Americans made 10.8 billion trips through public transit, the highest number in 58 years (back during the Eisenhower Administration).
• Though many assume public transportation is primarily an urban concern, rural communities would also be adversely affected – the 17 most rural states receive more than 40 percent of their transit funding from the federal government. Cutting transit would mean less access to jobs, healthcare, and schools, and would result in a $13.8 billion cut to rural economies over the next six years.
• Further delay in addressing the severe backlog ($88 billion) of transit system repairs would jeopardize the positive economic impact of operating safe, reliable transit systems.
• With 52 days left until the transportation bill expires, the time for action is now. This country needs good public transportation investment.
• Emmett Jordan, Mayor of Greenbelt MD (and representing the National League of Cities), explained how local governments are very affected by the national government’s transportation policy and are dependent on federal investments.
• Local governments need to partner with neighboring local governments, their state and the federal government to maintain the transportation infrastructure that their residents depend on. While they don’t have much control over federal funding, they are still held accountable by their citizens.
• Local governments are limited by uncertain and constrained federal investment.
• Residents are actively seeking more transportation options, such as bike lanes and public transit, and pushing local governments to transition to “complete streets” which accommodate more than just cars. The lack of certainty due to continual short-term funding extensions is crippling local governments’ ability to meet these needs.
• Drew Preston, Manager, Congressional and Public Affairs, U.S. Chamber of Commerce, highlighted the importance of transportation investments to businesses.
• Preston stated that “there is no economy without transportation,” and “there would be nothing around us without transportation.”
• Transportation infrastructure is very often “out of sight, out of mind.” For example, few people realize how many goods are transported over waterways. Transportation is so integrated into our daily lives that we don’t think about what we would do if it wasn’t there.
• The prices of all the goods and services are impacted by the level of efficient transportation available. The freight transportation network moves $46 billion of goods, 52 million tons per day.
• International tourism in the United States, which makes intensive use of the transportation network, generated $181 billion in 2013.
• When evaluating transportation investments from a cost/benefit perspective, the long-term cost of inaction far outweighs the repair and