Senate Passes '04 Transportation Appropriations
Bill
October 31, 2003
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On Thursday, October 23 the Senate passed its version of
the FY 2004 Transportation, Treasury, and General Government Appropriations
Act. The bill, S. 1589, maintains the Senate Appropriations Committee-passed
funding level for the federal transit program of $7.305 billion, $74 million
higher than the level passed in the House and an increase of $126 million
over actual transit funding in FY 2003.
Action on the bill had been delayed due to a provision banning
travel to Cuba in the Treasury title of the bill, while the Transportation
title was mostly non-controversial. Under the bill, Amtrak is funded at $1.346
billion, $446 million higher than in the House-passed bill. The bill retains
language in the Committee-approved version that would establish an FTA purchase
pooling pilot program that would use Internet-based technology to allow transit
systems to collaborate on bus procurements. For a more detailed comparison
of the House and Senate appropriations bills, and more information on the
purchase pooling pilot program, see APTA's September 11 Legislative Update.
APTA has written to House and Senate Appropriations Subcommittee members urging
conferees to support the highest funding levels possible, and raising concerns
about New Starts language in the House report, and the need for additional
FTA funding. The Legislative Update and letter to Congress are on the Government
Affairs section of www.apta.com.
Appropriations Outlook
A House-Senate Conference Committee will meet soon to work
out differences in the respective bills, with possible floor action on a conference
bill during the week of November 3 or 10. It is not yet clear whether the
transportation funding bill will be considered as a stand-alone bill or be
included, along with other unfinished appropriations bills, in an omnibus
appropriations package.
The House and Senate have passed a Continuing Resolution
(CR) to ensure that programs under unfinished appropriations bills can continue
operating until November 7. With the increasing likelihood that Congress will
not be able to complete its business for the year and adjourn by November
7, an additional CR will be needed until Congress completes the appropriations
process. House leadership has indicated it will introduce another CR to extend
federal operations until November 21 or 22, with Senate leadership preferring
November 21.
Senate Committee to Markup Highway Reauthorization
Leadership of the Senate Environment and Public Works (EPW)
Committee on October 23 issued a draft bill and stated they have reached an
agreement on legislation to reauthorize the highway title of TEA 21. Committee
Chairman Inhofe (R-OK), Ranking Member Jeffords (I-VT), and Transportation
and Infrastructure Subcommittee Chairman Bond (R-MO) and Ranking Member Reid
(D-NV) said they expect the bill to move quickly through the Committee to
the Senate floor once Congress returns to work in early 2004. A markup of
the bill, S. 1072, has been tentatively scheduled for Wednesday, November
12, and numerous amendments are likely to be offered then.
The 477-page bill does include funding levels for most of
the core federal highway formula programs. Overall funding is expected to
be consistent with the FY 2004 Budget Resolution as passed by the Senate,
which provided some $255 billion for the highway program over the next 6 years.
While the bill provides comparable growth for the NHS, Interstate Maintenance,
Bridge and CMAQ programs, it provides smaller growth for the STP. Many other
funding details, however, are absent from the bill draft, including the highway
minimum allocation percentage (currently 90.5% under TEA 21); total annual
allocations to each state; earmarks; how the Revenue Aligned Budget Authority
(RABA) will work; and the overall mechanism for increasing revenues to the
Highway Trust Fund. The highway minimum allocation amount is expected to be
difficult to resolve. The Senate Finance Committee, with jurisdiction over
the bill's revenue title, has largely ruled out any increase in the gas tax,
meaning other ways of increasing revenues must still be found.
The bill adopts the Bush Administration's proposed Infrastructure
and Maintenance Performance Program, which would provide funds quickly to
"ready to go" programs that are currently under-funded but eligible
under existing highway programs. The bill also makes changes to corridor programs,
contains several environmental streamlining provisions, and follows the Administration's
request to increase funding for highway safety programs. The bill can be viewed
at thomas.loc.gov (then enter S. 1072).
The Senate Banking Committee, with jurisdiction over the federal transit program,
is not expected to move its portion of the bill before Congress adjourns for
the year. Committee leadership and staff have indicated for months that they
do not intend to move the transit title until agreement has been reached on
a mechanism to provide increased funding for the program.
Transit Leasing Provisions Under Attack
On October 2 the Senate Finance Committee reported out the
Jumpstart Our Business Strength Act (JOBS), S. 1637, which principally deals
with amendments to the Internal Revenue Code in order to comply with certain
World Trade Organization (WTO) rulings. The bill also contains a revenue off-set
provision that, if kept in the final bill and allowed to become law, would
negatively affect transit lease/lease back tax incentives, which have been
a vital source of funding for capital investments. Subsequently, on October
21 the Senate Finance Committee held a hearing on various tax shelters allowed
by federal tax laws, with a strong focus on lease deals involving public entities,
including transit systems. The hearing led to negative reports in the media
about such transactions.
APTA has written to members of the House Ways and Means Committee,
which has jurisdiction over this issue in the House, and has met with committee
staff in both the House and the Senate, to make the case that leasing transactions
have provided hundreds of millions of dollars for transit capital investments,
and limiting them would adversely affect the ability of a number of transit
agencies to help address capital needs. To view APTA's October 14 letter on
this matter, visit the Government Affairs section of www.apta.com.
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Action Call!
If your system has used or is considering such a leasing arrangement,
contact your member of Congress or your Senator to let them know about
the positive effects of the transactions and that you oppose the Senate
Finance Committee's action. Contact the FTA and emphasize how important
these transactions have been in a time of scarce state and local resources.
APTA's October 14 letter can be followed and is available on the Government
Affairs Section of www.apta.com
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Ways and Means Committee Acts On Pending RIDE 21 Bill
Last summer the House Transportation and Infrastructure Committee approved
the Rail Infrastructure Development and Expansion Act for the 21st Century
(RIDE 21), H.R. 2571. RIDE 21 would authorize states to issue $2.4 billion
a year over 10 years in tax-exempt and tax credit bonds for high speed rail
projects; boost the RRIF loan program for intercity rail, commuter rail, and
freight rail; increase funding for the Swift High Speed Rail Act; and make
high speed rail capital costs such as equipment and infrastructure eligible
for federal funding (currently only development costs such as research and
planning costs are eligible). In a surprise move, on October 28 the House
Ways and Means Committee marked up RIDE 21 and reported it out of Committee.
However, the provisions authorizing the Administration to issue the tax-exempt
and tax credit bonds were stricken by a modification made by Chairman William
Thomas (R-CA), with the remainder of the bill intact. No further action on
the bill is expected in this session of Congress.
For More Information
Visit the Government Affairs section of the APTA website at www.apta.com,
or contact Rob Healy at (202) 496-4811 or Josh Fudge at (202) 496-4810.
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