Reauthorize TEA 21 -- Don't Slow America Down

(Download Document In Adobe PDF Format)

The uncertainty over TEA 21 and the lack of a long-term commitment to reauthorization are affecting American businesses and the public-private partnerships through which public transportation services are provided. Without a long-term funding commitment for the federal transit program, local transit projects will languish. Access to jobs and movement of goods will be severely curtailed. And the vitality of transit’s private business partners will be put in jeopardy. The message couldn’t be clearer. Prompt passage and enactment of TEA 21 and guaranteed funding are critical to maintaining momentum and competition in the US economy. Passengers, private businesses and industries that supply, build and operate public transit and our nation’s highways are depending on it. Continuation of the TEA 21 funding guarantees will foster a long-term business outlook for contracts and business investments.

Don’t slow America down. Reauthorize TEA 21.

Get it done right...now.

“Plant production has been off 20 percent. Without reeauthorization, we can only expect further declines.”

 

Don’t Put the Brakes on Transit

The case for public transportation is irrefutable. Americans ride public transportation 32 million times a day. From coast to coast, public transportation has long been an integral part of American life, and is destined to play an increasingly important role in urban, suburban and rural communities.

“Because of the delay in funding, all the investments we made in training will be lost. It will be difficult to retain people in skilled positions, and our plans for recruiting other highly skilled, higher-paid positions will be on hold.”

 

Demand is high.

The demand for public transportation is at an all-time high. Since 1995, transit ridership is up 22 percent, a higher rate of growth than either airlines or highways. Yet Americans want even more transit services, and are making their preferences known through the ballot box. In 2004 alone, Americans resoundingly approved 80 percent of the public transportation initiatives on local and state ballots.

Federal support is bipartisan and longstanding.

The federal government believes in public transportation, supporting critical investment in transit infrastructure for over 40 years. Why? Because economic development spawned by public transportation far exceeds expectations, and the benefits provided far exceed the costs. Over the past reauthorization period from 1998 through 2003, the federal government provided more than $37 billion in capital investment— and will see its investment spark nearly $85 billion in total capital investment in transit vehicles, facilities, equipment, technology and services.

The private sector delivers.

Federal capital investment flows through transit’s private-sector partners and suppliers nationwide. Fully 58 percent is used to design and build facilities and systems; 34 percent to build and outfit transit vehicles and related equipment; and 8 percent to purchase other private-sector services.

Capital investment in public transportation ignites business activity that far surpasses the initial outlay. All private-sector businesses in major industry categories and all 50 states benefit, with the dollars flowing to a variety of companies, from large rail construction firms to small, specialized software suppliers.

Reauthorize TEA 21. Don’t Slow America Down.

For further details and updated information, please visit www.apta.com or contact us at:

American Public Transportation Association
1666 K Street, N.W.,
Washington, DC 20006-1215

Phone: 202-496-4800 Fax: 202-496-4324

REAUTHORIZE TEA 21

DON’T SLOW AMERICA DOWN

Keep America Moving

Public transportation means business. It’s a $38+ billion-a-year growth industry. Investment in public transportation strengthens companies, creates both public- and private-sector jobs, and boosts tax revenues in all 50 states. TEA 21 reauthorization is already 18 months late. The delay is taking its toll on the economy. If reauthorization continues to be delayed, the resultant lack of certainty will cause further disruptions for American businesses.

Business backlog has dropped.

Companies that serve the transit industry have already experienced shrinking backlogs, with some firms off 50 percent. Failure to reauthorize will further reduce future orders, forcing cuts in sales, in production, in introduction of new product lines and, most importantly, in employees. When the business outlook is promising, businesses invest in their workforce and in their production capability. The absence of a multi-year transportation bill causes public agencies to defer capital decisions and triggers similar deferrals in the private sector.

Production will slow.

“Our backlog is down by half. We’re considering layoffs in both manufacturing and engineering, and we believe our competitors are experiencing similar declines.”

Inactive and slower production lines...stalled projects...useful new products that never make it off the drawing boards. This is the picture at transit-related businesses nationwide if funding is not reauthorized and guaranteed.

Absent long-term federal funding, projects are delayed and deferred, and private-sector backlogs, revenues and profits could decline further.

“Without TEA 21, our company won’t be able to develop new products or offer a broader array of transit services.”

 

Employment will dip...profits will decline.

In America’s heartland, thousands of workers are building buses in manufacturing plants that are pumping millions into local economies. But as the market for transit businesses deteriorates, hiring will be slowed…or stopped altogether. In fact, 47,500 jobs nationwide may be lost with every billion dollars in federal funding that fails to materialize. With declining employment comes significant reductions in personal income—a situation with adverse implications for businesses and the economy as a whole.

“Unless we have guaranteed funding, we can’t make an R&D investment to meet our customers’ needs.”

The fact that uncertainty and lack of funding will negatively impact profits is obvious. A funding delay translates into business lost—and that’s far too high a price to pay.

	Keep People Moving...Keep Business Moving
	Transit is a vital force in America. Keeping transit alive and supporting a vibrant market for private industry partners won’t just happen. It requires the right kind of action. Support passage of a well-funded, fully guaranteed, long-term TEA 21 reauthorization bill.

R&D investment and innovation will diminish.

Struggling businesses do not invest in research and development. Without R&D, there won’t be innovations such as alternative fuel programs and intelligent transportation systems (ITS) development. And America will fall further behind in the global competition for excellence and efficiency.

Tax revenues will slip.

Transit systems shape development. They’re magnets for growth, as developers pour millions of dollars into residential complexes, corporate buildings, sports facilities and entertainment centers around transit stations. Transit is a catalyst for development and its associated tax revenues. Without this investment,
who really loses out? The American public.

Construction time will be lost.

Bringing a transit project to life is a carefully orchestrated process involving millions of purchasing decisions and construction milestones—all keyed to weather conditions and “construction seasons.” Interruption of funding will destroy this chain of events and shut down projects already in the works, making them far more costly to construct down the line.

“Our construction schedule follows Mother Nature. If a bill can’t be completed by late spring,…we will lose an entire construction season.”