Administration Releases More Detailed FY 2010 Budget Submission -- Proposes Baseline Funding for Transit Pending Action on Authorization Bill

5/5/2009

(Click here to download in Adobe PDF format)

On Thursday, May 7, 2009, the Obama Administration released its detailed budget recommendations for Fiscal Year (FY) 2010 for all federal programs, including federal surface transportation programs. The documents released yesterday provide the programmatic level detail that was not included in the Administration’s initial budget submission to Congress, but as explained below, even this more detailed budget assumes only current baseline program levels for transit and highway programs under the expiring SAFETEA-LU authorizing law. The budget proposal essentially assumes that any funding growth under these programs will be subject to decisions made in the new authorizing bill.

For Federal Transit Administration programs in FY 2010, the Administration proposes total budget authority of $10.336 billion, which is essentially flat line funding from FY 2009 authorized levels, and a small increase over the FY 2009 appropriated levels (exclusive of stimulus funding). Capital Investment Grants are proposed to be funded at a level of $1.827 billion and Formula and Bus Grants at a level of $8.343 billion.

The proposal includes a higher level of support from general fund resources for both transit and highway programs currently funded principally from the Highway Trust Fund. In an effort to explain that its proposals on the Federal Transit Administration and Federal Highway Administration programs are really preliminary baseline proposals that will be modified in the authorization process, the Administration budget submission repeatedly states the following:

The Administration is developing a comprehensive approach for surface transportation reauthorization. Consequently, the Budget contains no policy recommendations for programs subject to reauthorization, including highway programs. Instead, the Budget displays baseline funding levels for all surface transportation programs.

With regard to general fund provisions of federal transit programs, the budget states that it is not indicative of “recommended funding levels or a budgeting approach for the upcoming reauthorization” but is intended to provide an accurate picture of the current fiscal condition of the Highway Trust Fund/Mass Transit Account.

Additionally, as previously announced, the budget recommends $1 billion for Capital Assistance for High-Speed Rail Corridors and Intercity Passenger Rail Service. This would be the first year of a five-year proposal following-on the $8 billion in “seed money” for this program in the American Recovery and Reinvestment Act (ARRA). The budget also recommends a small increase in funding for Amtrak from $1.490 billion to $1.502 billion.

Finally, the budget submission recommends a reduction in funding for the Rail and Public Transportation Security Grants program to $250 million in FY 2010. The program received $400 million in FY 2009 Appropriations and additional $150 million through the ARRA, for a total of $550 million in FY 2009. Moreover, the program is authorized to be appropriated at a level of $900 million in FY 2010 under the 9/11 Commission Recommendations Act.

House Transportation and Infrastructure Committee to Introduce Authorization Bill

Chairman James Oberstar of the House Transportation and Infrastructure Committee has said he intends to introduce a committee draft of the next surface transportation authorization this month. The Chairman has indicated that he would like to have the legislation considered in the full committee and onto the House Floor by June. Few details regarding the Chairman’s plans for the public transportation title of the bill are available at this time, but committee staff has said they are using APTA’s recommendations as a starting point for the transit title. Committee leaders have begun discussions with the House Ways and Means Committee to develop the financing portion of the bill. In addition, the Transportation and Infrastructure Committee has extended the deadline for the submission of project requests until May 15.

On the Senate side, the Banking Committee has also been working to develop the public transportation portion of the authorization bill, but has not yet released any details on their proposal. The Senate Environment and Public Works Committee has also been working on its portion of the bill and leaders from that committee met recently with leaders from the House Transportation and Infrastructure Committee on their respective versions of the upcoming bill. Finally, in the President’s budget request for FY 2010, the Administration has indicated that it is in the process developing its proposal for the surface transportation legislation, as well. More details will be reported as soon as they are available.

Stimulus Funds for Operating Purposes

Recently, there has been discussion about the possibility of adding legislative language permitting the temporary use of existing transit funds for operating purposes to the FY 2009 supplemental appropriations bill for military funding, which is likely to be considered in both the House and Senate in the next few weeks, with funds provided under either the American Recovery and Reinvestment Act (ARRA) or under the FY 2009 Transportation Appropriations bill. While it does not appear that the House will include such language in its version of the supplemental appropriations bill, the Senate Banking Committee is considering offering an amendment to the Senate version of the bill that would permit the use of transit funding under ARRA for operating purposes.

APTA has supported the use of a portion of ARRA funds for operating expenses to halt employee layoffs, service cuts, or fare increases, and continues to support efforts to permit the use of ARRA funds for such purposes. Funding under ARRA is from general funds and would not affect trust fund balances in the Mass Transit Account (MTA) or the outlay rate of spending from the MTA. More details will be provided as they become available.

House Likely to Move Climate Change Bill

The House Energy and Commerce Committee this week continued preparations for markup of its climate change bill, the "American Clean Energy Security Act of 2009.” Following a meeting of Democratic Committee members and President Obama on Tuesday, Chairman Henry Waxman (D-CA) indicated that the bill could be fast-tracked and move directly to a full committee markup. A markup schedule has not been released, but the Chairman Waxman has repeatedly stated that the committee will approve a bill before Memorial Day.

APTA strongly urges its members to immediately contact members of the committee that represent your agency, business, or region, including Chairman Waxman and Subcommittee Chairman Edward Markey.

APTA members need to make a strong case for public transportation investment in the bill as the committee has been reluctant to direct cap and trade revenue proceeds to specific purposes.

APTA President Bill Millar sent a letter to Chairman Waxman asking that 10 percent of emission allowance revenue be dedicated to investment in public transportation and other emission-reducing transportation infrastructure. A copy of the letter can be found here. The APTA Intergovernmental Issues Subcommittee and APTA staff have also developed a set of “Discussion Principles” to highlight transit industry priorities under a cap-and-trade program. To view the principles, click here.

When you talk to members of the committee, please ask the following:

Urge your member of Congress to contact Chairman Waxman and ask for public transportation investment in climate change legislation. APTA has asked the committee to dedicate no less than 10 percent of allowance revenue created under a cap-and-trade program to investment in public transportation and transportation infrastructure.
Explain that transportation is responsible for one-third of carbon dioxide emissions (CO2) and that current public transportation use already saves 4.2 billion gallons of fuel and prevents the emission of 37 million metric tonnes of CO2 annually.
Ask that cap-and-trade revenue from fuel consumed by the transportation sector be reinvested in transportation infrastructure.
Request that climate change legislation provide investment in public transportation to prevent service reductions related to a cap-and-trade program resulting from increases in the price of fuel and electricity costs. Transit systems are exempt from federal motor fuels taxes, and this principle should be extended to climate change legislation.

Members of the House Energy and Commerce Committee

Democrats

Henry A. Waxman, CA, Chair
John D. Dingell, MI, Chair Emeritus
Edward J. Markey, MA
Rick Boucher, VA
Frank Pallone, Jr., NJ
Bart Gordon, TN
Bobby L. Rush, IL
Anna G. Eshoo, CA
Bart Stupak, MI
Eliot L. Engel, NY
Gene Green, TX
Diana DeGette, CO
Lois Capps, CA
Mike Doyle, PA
Jane Harman, CA
Jan Schakowsky, IL
Charles A. Gonzalez, TX
Tammy Baldwin, WI
Mike Ross, AR
Anthony D. Weiner, NY
Jim Matheson, UT
G.K. Butterfield, NC
Charlie Melancon, LA
John Barrow, GA
Baron P. Hill, IN
Doris O. Matsui, CA
Donna M. Christensen, VI
Kathy Castor, FL
John P. Sarbanes, MD
Christopher S. Murphy, CT
Zachary T. Space, OH
Jerry McNerney, CA
Betty Sutton, OH
Bruce L. Braley, IA
Peter Welch, VT

Republicans

Joe Barton, TX, Ranking Member
Ralph M. Hall, TX
Fred Upton, MI
Cliff Stearns, FL
Nathan Deal, GA
Ed Whitfield, KY
John Shimkus, IL
John B. Shadegg, AZ
Roy Blunt, MO
Steve Buyer, IN
George Radanovich, CA
Joseph R. Pitts, PA
Mary Bono Mack, CA
Greg Walden, OR
Lee Terry, NE
Mike Rogers, MI
Sue Wilkins Myrick, NC
John Sullivan, OK
Tim Murphy, PA
Michael C. Burgess, TX
Marsha Blackburn, TN
Phil Gingrey, GA
Steve Scalise, LA