BEFORE THE
SENATE BANKING, HOUSING, AND URBAN AFFAIRS COMMITTEE
*******
SUBMITTED BY
American Public Transportation Association
1666 K Street, N.W.
Washington, DC 20006
(202) 496-4800
APTA is a nonprofit international association of over 1,400 public and private member organizations including transit systems and commuter rail operators; planning, design, construction and finance firms; product and service providers; academic institutions; transit associations and state departments of transportation. APTA members serve the public interest by providing safe, efficient and economical transit services and products. Over ninety percent of persons using public transportation in the United States and Canada are served by APTA members.
INTRODUCTION
The American Public Transportation Association (APTA) appreciates the
opportunity to testify on the upcoming reauthorization of the Transportation Equity Act
for the 21st Century (TEA 21).
APTA's 1,400 public and private member organizations serve the public
and the public interest by providing safe, efficient, and economical public transportation
service, and by working to ensure that those services and products support national
energy, environmental, community, and economic goals. APTA member organizations include
transit systems and commuter railroads; design, construction, and finance firms; product
and service providers; academic institutions; and state associations and departments of
transportation. More than ninety percent of the people who use public transportation in
the U.S. and Canada are served by APTA member systems.
TEA 21 Has Sparked a Transit Renaissance
"The car was over crowded, folks were hanging on the
straps,
Girls had bundles in their laps, came from Macy’s store perhaps;
You couldn’t carve your way out with a carving knife or ax
Remember I am telling honest facts, . . .
Hold fast! Don’t you lose your nerve!
Grab your lady by the arm, we’re going ‘round the curve
Keep your wits about you and you’ll never get a jar,
If you listen to the man who runs the trolley…car!"
Mr. Chairman, the above lyrics are from a 1901 song entitled "Hold
Fast!" by Jerome and Schwartz, which is featured in the exhibit on transit and
its unique relationship to the American City now at the National Building Museum. The
lyrics come from a time when public transportation was the lifeblood of the American City
and people packed onto transit cars as tight as sardines in a can. It has now been a
century since "Hold Fast" was published, and thanks in no small part to
Congress’ investment in the TEA 21 federal transit program, once again the
song’s lyrics ring true. Public transportation is experiencing a renaissance in the
United States and is enriching the lives of our citizens by giving them mobility and
freedom of transportation choice. However, if transit’s resurgence is to continue, we
need to increase investment in public transportation infrastructure, maintain the TEA 21
guaranteed funding provisions, and streamline delivery of the transit program.
Transit Ridership is at Record Levels
Americans used public transportation a record 9.6 billion times in 2001
and transit ridership has grown 23 percent since 1995 according to preliminary ridership
figures just released. This represents the highest level in more than 40 years. Over the
last six years, transit usage has grown faster than the population (4.5%), highway use
(11.8%), and domestic air travel (12%). In 2000, ridership was up in all modes and in all
parts of the country. In the light rail category, Denver (41%), San Jos (34%), and New
Jersey Transit (38%) experienced tremendous ridership success. New light rail service in
Salt Lake City is exceeding estimates and was a big success during the recent Olympic
Games. The commuter rail operations in Dallas (39%) and in Baltimore (7.5%) have had
continued success. Heavy rail ridership increased by more than 7% in New York City,
Washington, D.C., and Philadelphia, and it rose by nearly 4% in Chicago and by almost 13%
in San Francisco. Bus service was up in large cities like Washington, D.C. (8.4%) and New
York City DOT (6.7%), as well as in cities across the country like Birmingham, AL (5.7%)
and Spokane, WA (5.1%).
INVESTMENT IN THE TEA 21 TRANSIT PROGRAM HAS PAID-OFF
The record transit ridership increases are a direct result of the
increased federal investment in TEA 21. TEA 21 authorized $41 billion for public
transportation, and guaranteed $36 billion, a significant increase over the previous
funding. This funding increase benefited transit systems in both urban and rural areas. In
1997, before TEA 21, total funding for the rural program was $115 million. In 2002, the
rural program is funded at $223.4 million, an increase of 95 percent. This compares with a
65 percent increase in the overall growth of the federal transit program over the same
period. A crucial provision of TEA 21 has been the budgetary "firewalls," which
guarantee that Transportation Trust Fund monies are used for transportation purposes. The
transit funding guarantee provision has been instrumental in insuring that transit funding
has increased as intended by TEA 21. Since the federal transit program is now primarily a
capital investment program, the predictability and reliability of funding under the
guarantee has been a big plus for transit agencies that must develop long-term-capital
plans. It lets them operate in a businesslike fashion, and the private markets are much
more interested in public/private innovative investment plans with an assured level of
federal funding.
The additional TEA 21 transit and highway investments have been put to
work wisely and expeditiously on an existing array of state-of-the-art transportation
improvements. Nearly 200 new or expanded rail or bus or rapid transit projects were
authorized under TEA 21 for 88 areas in more than 40 states. The TEA 21 investments have
enriched the lives of Americans by giving them mobility and the freedom to do what they
want and need to do, and created real success stories. To capture some of these success
stories, APTA and the American Association of State Highway and Transportation Officials
(AASHTO) jointly published a report called "Money at Work," which we are
pleased to submit for the record.
Transit Plays Key Role in National Emergencies
Perhaps one of the best illustrations of the benefits of the investment
in the transit program was the role that transit played during the September 11, 2001
terrorist attacks. On September 11, citizens in New York and Washington relied on public
transportation as the mode of choice to evacuate from the urban core. In New York,
hundreds of thousands of citizens were evacuated quickly and without injury. Here in
Washington, the Washington Metropolitan Area Transit Authority (WMATA) proved its value as
a regional evacuation system running the equivalent of two rush hours back-to-back and
moving thousands of citizens out of harms way. This same story was true all across the
country as transit systems helped evacuate citizens from shut down airports and center
cites. We have a report in this regard, "America Under Threat: Transit Responds to
Terrorism," which we are pleased to submit for the record.
THE TEA 21 Transit Investment Has Made Positive Contributions to the
U.S. Economy
In addition to significant increases in transit use, TEA 21 investments
in the transit program have generated significant economic benefits. APTA has produced a
publication, "Public Transportation Means Business," which highlights the
significant economic benefits of transit investment. The report illustrates how investment
in transit sparks an economic chain reaction that generates business activity, creates
jobs, boosts property values and tax earnings, maximizes transportation spending, and gets
people to work. We would also like to submit that report for the record.
Not only is the TEA 21 transit investment spurring economic growth in
the nation’s major metropolitan areas, but it is boosting the economy in smaller
towns and rural areas as well. For example, investment in transit systems nationwide has
fueled the growth of Chance Coach in Wichita, Kansas. With a new manufacturing plant
opened in 2000, the company has increased its staff, production and sales, and created a
successful public transportation business which contributes over $15 million annually to
the local economy. There are numerous other examples of bus manufacturers operating in the
nation’s heartland. Neoplan USA buses are built in Lamar, Colorado and Brownsville,
Texas; New Flyer buses in St. Cloud, Minnesota; Nova buses in Roswell, New Mexico; North
American Bus Industries buses in Anniston, Alabama; Champion buses in Imlay City, Michigan
; MCI buses in Pembia, North Dakota; and Orion buses in Oriskany, New York. In addition,
Kawasaki will be building rail cars in Lincoln, Nebraska.
Transit Investment and the Environment
The TEA 21 transit investment is also helping to protect the
environment. Mr. Chairman, let me tell you about something in our own backyards. An
article in last week’s Washington Post (3/4/02) said that Maryland’s
population of Baltimore Orioles, long in decline, could vanish altogether late this
century due to dramatic changes in migration patterns and declining habitats strongly
influenced by global warming. The article cites as study by the American Bird Conservancy
which suggests that the effects of global warming may be robbing Maryland and a half-dozen
other states of an important piece of their heritage by hastening the departure of their
state birds. The report says the earth’s rising temperature, which scientists
attribute to carbon dioxide and other green house gases, is already shifting songbird
ranges, altering migration behavior and perhaps diminishing some species’ ability to
survive. The good news is that transit use can help reduce green house gas emissions. For
example, here in the Washington region alone, the Metrorail system removes 325,000
vehicles from the road and helps to keep approximately 1,400 tons of hydrocarbons, 9,000
tons of carbon monoxide and 700 tons of nitrogen oxides out of the region’s air on an
annual basis.
The Demand for Public Transportation is Soaring
The consistent annual ridership growth in nearly every mode of
transportation sends a message loud and clear: people are leaving their cars at home and
using public transportation more and more. As new systems open doors and existing systems
expand their service, demand is exceeding the speed at which new service can be funded and
implemented. Now more than ever, steadily growing congestion is causing people to seek
alternative forms of transportation to commute to work, complete errands, make health care
visits, and to get to and from sports and entertainment events.
Voters Demanding More Transit
It's no wonder that so many American cities have recently voted to
start or expand light rail, commuter rail, or bus service in their communities. Just last
week, on March 5, in a statewide election California voters overwhelmingly approved
Proposition 42, which changes state law to require that all state gasoline tax revenue be
devoted to transportation beginning in 2008. Under the provision, 20 percent of the gas
sales tax funds will be used for public transportation. Voters have also supported recent
transit initiatives in Pierce County, Washington; Salt Lake City, Utah; Seattle,
Washington; Toledo, Ohio; Providence, Rhode Island; King County, Washington; Houston,
Texas; Glendale, Arizona; and in Portage County, Ohio, among others.
The nation’s mayors also recognize the growing demand for public
transportation. In February, at a meeting of more than 300 mayors from across the country,
a survey was released that showed that 80 percent of respondents agreed that the idea of
building light rail is a viable alternative to driving.
TEA 21 REAUTHORIZATION
Without question, the TEA 21 investment in transit has paid-off by
helping the economy and enriching the lives of millions by giving them mobility and
freedom of choice to do what they want to do. However, the current level of federal
investment in the nation’s public transportation system is inadequate to keep up with
the steadily growing demand for additional transit services and the need for improved
maintenance of the core transit system. This is why reauthorization of TEA 21 is critical
and why we urge Congress to preserve a strong and growing federal investment in the
surface transportation system.
APTA has formed a reauthorization task force with broad representation
from a cross section of the industry. The task force is working on a balanced
reauthorization proposal for the entire transit industry. Overall, APTA supports retention
of the basic principles of TEA 21, including a needs-based transit program. APTA’s
reauthorization proposal centers around three themes: 1) Increasing Investment in the
Program; 2) Maintaining the TEA 21 Funding Guarantees; and 3) Streamlining Transit Program
Delivery.
- Increasing Needs Means Increasing Investment in the Transit Program
APTA supports increasing investment in public transportation
infrastructure. Additional funding is needed to maintain the existing capital investment
and to expand core capacities in order to meet growing demand for service and support
national policy goals. Overworked bus and rail fleets paired with increasing ridership
have taken their toll over the years.
APTA has compiled a Transit Needs Synthesis Report,
which summarizes and makes projections based upon estimates of transit capital needs
studies conducted by APTA, the Federal Transit Administration (FTA), and the Community
Transit Association of America (CTAA). A copy of the report is attached for the
Committee’s review. Based on the study, preliminary estimated total transit industry
needs from FY 2004 through FY 2009 will be $253 billion. This is an average of $42 billion
per year, in FY 2003 dollars. The $42 billion annual amount includes: $12.4 billion
annually to complete 208 transit new start projects authorized in TEA 21; $7.4 billion
annually for buses and bus facilities to replace over vehicles and to expand bus fleets to
increase service; $6.5 billion annually to expand the core capacity of existing transit
infrastructure to meet existing demand and prepare for continued growth in demand; $6.2
billion for Fixed-Guideway modernization; and $3 billion for small urbanized and rural
areas.
The Department of Transportation (DOT) is expected to release its
biennial "Conditions and Performance" report this summer. The 1999 DOT report
recommends an annual transit investment of $16 billion in order to improve both transit
conditions and performance. However, the 1999 Conditions and Performance report is
outdated because it is based on anticipated transit ridership growth of 1.9 percent. Yet,
actual ridership growth has far outpaced the 1999 estimate. Adjusting to an annual
ridership growth of 4.5 percent and in 2003 dollars, the DOT needs amount becomes $27.4
billion annually. AASHTO is also expected to release its "Bottom Line Report" in
Fall 2002. The Bottom Line report has been compiled prior to each recent reauthorization
bill and assesses surface transportation capital needs for highways and transit. APTA also
plans to do another survey of its members’ funding needs later this year.
Maintain Transit Program Funding Guarantees
APTA supports maintenance of the transit program budgetary funding
guarantees. TEA 21 included a significant budget act amendment which created new
discretionary "mass transit" and "highway" spending categories under
the discretionary budget cap. These discretionary funding "firewalls" for
surface transportation spending have ensured that the transit program has grown at an
average rate of about 9 percent since passage of TEA 21. Most importantly, the guarantees
have provided transit authorities, states, and urbanized areas with certainty as to the
level of funding they would receive each year. This is important because a stable funding
stream is essential for transit authorities and states and metropolitan areas, who need to
develop long-term transportation plans and to efficiently manage capital projects. The
reliability of the TEA 21 transit funding has prompted faster project implementation, and
innovations in financing, building and operating transportation facilities. Transit
authorities, states and metropolitan areas have put in place aggressive new transportation
measures to take advantage of the funding guarantees and to fully accelerate critical,
often delayed projects.
In addition, the provision has ensured that transportation trust fund
revenues are spent for transportation purposes. This is critical because transit needs
exceed $42 billion annually. Since federal transit capital assistance now funds about half
of all annual transit capital spending, this means that the federal program when coupled
with non-federal matching funds is addressing less than one third of those needs. In this
regard, APTA urges the Congress to fund the transit program at no less than the $7.2
billion guaranteed level in FY 2003.
Streamlining Program Delivery
From streamlining the drug and alcohol testing program to simplifying
the federal procurement process, APTA’s reauthorization task force is recommending a
host of changes that would significantly simplify and improve existing federal program
mechanisms. We are organizing our efforts under four broad categories: Streamlining
Program Delivery; Improving the Planning Process; Simplifying the Procurement Process; and
Revising Other Federal Programs. We look forward to sharing these many initiatives with
the Committee.
CONCLUSION: HOLD FAST! PRESERVE AND EXPAND TEA 21
Mr. Chairman, the song "Hold Fast" ends with these
words, Keep your wits about you, and you’ll never get a jar, if you listen to the
man who runs the trolley…car!" In light of this admonishment, I urge the
Committee to listen to the operators of the nation’s trolley cars and Hold Fast!
Hold Fast by recognizing the many successes of TEA 21 which have enhanced the
American quality of life; Hold Fast by increasing investment in the TEA 21 transit
program; Hold Fast by preserving the transit guaranteed funding provisions; and Hold
Fast by streamlining delivery of the transit program.
APTA appreciates this opportunity to testify on the development of
legislation to continue programs authorized under the expiring Transportation Equity Act
for the 21st Century. We believe that public transportation is an essential
element of the nation’s transportation network, an element that can enhance and
improve the entire system. We look forward to working with this Committee during the
reauthorization process and would be pleased to provide additional information to assist
you in your deliberations.
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