July 15, 2003
The Honorable Ernest J. Istook Jr., Chairman
Subcommittee on Transportation, Treasury, and Independent Agencies
U.S. House of Representatives
2358 Rayburn House Office Building
Washington, DC 20515-6027
Dear Mr. Chairman:
I write to convey the views of the American Public Transportation Association and its 1500 member organizations on the FY 2004 Transportation and Treasury Appropriations bill as approved by the Subcommittee on Transportation and Treasury on July 11, 2003.
We are concerned and disappointed that under the bill federal transit funding would be cut below both the existing FY 2003 funding level and the Bush Administration's proposed FY 2004 funding level for transit. In the face of critical infrastructure needs brought about by near record ridership on many systems, and a sluggish economy, now is not the time to reduce investment in our nation's public transportation systems. According to the American Association of State Highway and Transportation Officials, some $44 billion a year is needed to maintain and improve existing transit systems. Further, investment in transit infrastructure creates jobs and generates a return on investment of at least 6-to-1. We urge you to keep America and the economy moving and increase the federal investment in transit as you take up the FY 2004 bill.
We are particularly concerned that the bill would cut funding for two very successful and highly beneficial transit programs: New Starts (section 5309) and Job Access and Reverse Commute (JARC).
The New Starts program has assisted local communities in creating a renaissance in rail transit over the past decade. The record is clear: new rail starts reduce congestion and spur development and economic growth. That is why more and more communities across America are planning rail transit projects and are willing to make significant state and local investments in the process. In short, it makes little sense to cut this popular program that generates so many benefits and provides such a significant return on the federal investment.
Besides cutting total federal funding for the New Starts program, the bill reportedly does not honor annual funding installments for New Start projects with Full Funding Grant Agreements, thus undermining the reliability and predictability of these Agreements. This reliability and predictability allows the leveraging of private investment, speeds up construction, and results in earlier project delivery. Failure to provide the full annual federal
payments under the FFGA program would only negate these benefits and significantly increase project costs.
Finally, the JARC program has been an enormous success in helping people move from welfare to work. In this economic downturn, we should make every effort to help Americans keep or find jobs by not cutting a program that provides essential mobility to those who need it most.
We appreciate your consideration of our views on these important issues. Please have your staff contact APTA's Rob Healy, at 202-496-4811 if you have any questions about these matters.
Sincerely yours,
William W. Millar
President
WWM/amm
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