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House Proposes 8-Month Transpo Bill In Hopes for a Republican Senate in 2015

While a six-year Senate transportation bill languishes in partisan purgatory, the House Ways and Means Committee has proposed an eight-month patch that would backfill the Highway Trust Fund until May 31, 2015. That would punt the transportation bill debate until a new Congress takes over — one that’s expected to have Republican majorities in both chambers.

Ways and Means Chair Dave Camp wants to let the next Congress deal with transportation funding. Photo: ##http://camp.house.gov/photos/##Office of Dave Camp##

Ways and Means Chair Dave Camp wants to let the next Congress deal with transportation funding. Photo: Office of Dave Camp

Ways and Means Chair Dave Camp earlier proposed “business tax reform” to fund transportation — as did President Obama — but even those powerful champions on both sides of the aisle weren’t enough to get traction on that idea.

The new Ways and Means proposal abandons both that idea and the Republican scheme to use post office cuts to offset losses to the Highway Trust Fund (which also funds transit and active transportation infrastructure, by the way). Instead, it opts for a smattering of fiscal gimmicks and fees unrelated to transportation with a previous record of success in the Senate.

Meanwhile, Sen. Ron Wyden (D-OR), chair of the Senate Finance Committee, is trying to get the full chamber to consider his extension bill, the PATH Act — that stands for Preserving America’s Transit and Highways — which has its own complex web of pay-fors.

While the Senate bill has been larded up with amendments that are unlikely to go anywhere, neither bill, at its core, includes any policy changes. Both are just stopgap funding fixes, and substantially similar ones at that.

The only substantive difference between the House and Senate proposals is the length. Wyden’s bill would require further action after the elections (as lawmakers agree is necessary) but before the new Congress is seated. Ways and Means Chair Dave Camp explained in a statement why he opposes that plan:
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Why the Federal Funding Emergency Matters for Transportation Reform

Why does it matter if state departments of transportation get less money?

In light of last week’s news that the U.S. DOT might have to ration its payments to states in the absence of new revenue for the federal transportation program, we posed that question to David Goldberg, communications director at Transportation for America. After all, a lot of states are pursuing wasteful boondoggles, like Kentucky’s Ohio River Bridges Project and the Illiana Expressway.

Several states have said they will hold off on planning new projects until they have some certainty that they will be reimbursed with federal funds. And if Washington can’t deliver those funds, good projects will be shelved as well as bad, Goldberg said.

Transit agencies will also feel the pain if Congress can’t come up with a funding solution. The Mass Transit Account of the Highway Trust Fund, which provides money to the nation’s transit agencies, is running low and on track to go into the red by October. ”Transit agencies are starting to say, ‘We better not let contracts because we don’t know where the money’s coming from,’” he said

Losing any portion of federal funding for transit agencies would be “devastating,” said Goldberg, as many of them are already stretched very thin.

Furthermore, Goldberg said that if Washington can’t find a solution to the transportation funding problem, it will bode poorly for attempts to solve other problems — like enacting federal policies that make transportation safer, greener, and more efficient.

“This is an opportunity for people in Congress, for Americans in general, to consider what the point of these programs are,” he said. “If we can’t take it seriously, we can’t ask for those progressive things.”

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With No Transport Funding Fix, USDOT to Cut Payments to States Next Month

Click to enlarge. Next month, the Highway Trust Fund -- the funding mechanism for the nation's transportation system -- will become insolvent next month without Congressional action. Chart: FHWA

Click to enlarge. Next month, the Highway Trust Fund — the funding mechanism for the nation’s transportation system — will become insolvent unless Congress acts. Chart: FHWA

State transportation departments could see the federal funding they receive pared back as early as a few weeks from now if Congress doesn’t come up with a transportation funding solution.

A “cash management plan” to deal with the impending shortfall in the Highway Trust Fund — which actually pays for transit, biking, and walking projects in addition to roads — was outlined in a letter from U.S. DOT to state transportation officials yesterday [PDF]. U.S. Transportation Secretary Anthony Foxx wrote that “as we approach insolvency, the Department will be forced to limit payments to manage the reduced levels of cash.”

Federal transportation revenues have been faltering for a long time, primarily because inflation has eaten away at the gas tax, which hasn’t increased in more than 20 years. Congress and the White House have floated many possible solutions of varying merit — a gas tax increase, an excise tax on oil, “business tax reform,” even canceling Saturday mail service. Lacking an agreed-upon revenue source, the Highway Trust Fund has been propped up with general revenues over the last few years. It is unclear whether Congress will extend that stopgap before funding starts to run dry in the next few months.

In his letter, Foxx indicated that if the issue isn’t resolved by August 1, around the time when revenues are expected to dip below current spending levels, U.S. DOT will dole out the available money based on existing funding formulas. In other words, the funding cuts will be shared among all the states, based on population and other factors.

In a speech yesterday in Washington, President Obama urged Congressional action to ward off funding problems, saying inaction would put 700,000 jobs at risk — or about as many people as live in Denver or Boston. He blamed Congressional Republicans for failing to act to resolve the issue.

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House Bill Would Give Cities and Towns More Say Over Transpo Spending

U.S. Representative Rodney Davis (R-IL) introduced the legislation alongside Chris Koos, mayor of Normal, Illinois, introduced the new bill last month. Photo: Transportation for America

U.S. Representative Rodney Davis (R-IL) introduced the legislation alongside Chris Koos, mayor of Normal, Illinois, last month. Photo: Transportation for America

A bill to give local governments greater access to transportation funds has bipartisan sponsors in the House of Representatives.

The Innovation in Surface Transportation Act, introduced late last month, would let local communities access a much more significant share of federal transportation funds. The legislation would set aside a share of various federal programs that flow to state departments of transportation, which would be distributed to cities and towns through a competitive grant process. The amount of funding reserved for local governments would add up to $5.6 billion per year.

Normal, Illinois' up-and-coming Uptown area will receive a boost, thanks to $33 million in federal funding that will help move the Amtrak station to this central location. Photo: Transportation for America

The bustling Uptown area in Normal, Illinois, will receive a boost thanks to $33 million in federal funding that will help move the Amtrak station to this central location. Photo: Transportation for America

The grants would be awarded by a committee of state and local officials, based on nine criteria, including potential to attract private investment and to promote “multimodal connectivity.” (Full text here [PDF].)

Currently, less than 15 percent of federal transportation funds are allocated to localities, according to Transportation for America.

The legislation is sponsored by Congressman Rodney Davis (R-Illinois) and Congresswoman Dina Titus (D-Nevada). Sponsors say the bill will help ensure that increasingly scarce transportation funds are directed toward the highest-priority projects.

“This bill recognizes our nation’s fiscal realities by giving preference to projects that strengthen the return on investment, encouraging public-private partnerships and increasing transparency so that every federal dollar spent goes a little bit further,” said Davis.

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GOP’s Lunatic Plan for Funding Transportation Draws Nothing But Scorn

House Republicans announced on Friday the latest in a long line of hare-brained schemes for funding the Highway Trust Fund, which is projected to become insolvent in August. Their ingenious proposal is to pay for transportation by making cuts at the post office.

You wouldn't be seeing many of these on Saturdays if the GOP transportation funding plan went through. Photo: ##http://en.wikipedia.org/wiki/File:Small_USPS_Truck.jpg##Wikipedia##

What does postal delivery have to do with transportation funding? Nothing, unless you’re a House Republican. Photo: Wikipedia

This idea didn’t come from some Tea Party fringe of the GOP. It came straight from leadership: House Speaker John Boehner, Majority Leader Eric Cantor, and Majority Whip Kevin McCarthy.

In a memo to party members, they called the plan “the best way to ensure continued funding of highway projects in a fiscally responsible manner.” They say they can extend the current transportation bill by one year and offset the cost by reducing Saturday delivery. The proposal would save an estimated $10.7 billion over 10 years. Republicans have chided Democrats for offsetting MAP-21 — a two-year bill — with 10 years’ worth of savings, but now they seem prepared to do it themselves.

The other part of the GOP proposal would transfer funds from the Leaking Underground Storage Tank Trust Fund — also pillaged for MAP-21 — to the HTF. The LUST Trust Fund gets revenue from 0.1 cent of the 18.4-cent federal gas tax, but underground fuel storage tanks must be pretty leakproof lately because the fund is flush with money.

Altogether, the proposal would come up with between $14 and $15 billion to fill the gap between transportation spending and Highway Trust Fund receipts.

For the past few years, the idea of eliminating or reducing Saturday mail delivery has come up a number of times. But under those proposals, the savings would shore up the financially shaky U.S. Postal Service itself, which has lost $41 billion in the last six years — not transportation.

The Senate EPW Committee has unanimously passed a six-year transportation bill, though that committee has no idea how the bill would be paid for and is counting on the Finance Committee to come up with a solution. Just about everyone with a dog in the fight, including the reform coalition, is pushing hard for a long-term bill. A one-year extension, no matter how it’s funded, is a highly unpopular option.

The House GOP’s extension is especially unpopular because of the way it’s funded. Democrats have called it “strange,” “unworkable,” and a ”non-starter.” The mail carriers’ union said the proposal “would begin dismantling the Postal Service” and “wouldn’t even work if tried.” Even the Greeting Card Association has taken a stand, calling the plan “misguided.”

Looks like yet another GOP funding gimmick destined for the dustbin.

Not that Republicans have cornered the market on transportation funding gimmicks, of course.

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The House GOP’s Campaign Strategy: Do Nothing on Transportation

A Senate committee has unanimously approved a transportation bill. Three other Senate committees are holding hearings on the bill. But over in the House? Crickets.

Why is T&I Committee Chair Bill Shuster allowing the transportation bill to get lost in political maneuvering? Photo: ##http://shuster.house.gov/recent-photos/##Office of Bill Shuster##

Why is T&I Committee Chair Bill Shuster allowing the transportation bill to get lost in political maneuvering? Photo: Office of Bill Shuster

At a press conference last week, former transportation secretary — and former House Republican — Ray LaHood scolded his old colleagues for failing to take action.

He said there was “nothing happening in the House” on the transportation bill, The Hill reported.

“Nothing introduced, nothing debated, no discussion and we’re in a mess,” LaHood said. “We really are. The American people get it.”

LaHood is probably right. A few days after those remarks, Adam Snider reported in Politico that members of the House Transportation Committee, from both sides of the aisle, agree that the lame duck is the best — or even the only — time to work on a bill. Snider explained the reasoning:

Congress won’t be able to act on a long-term policy bill that could cost $100 billion in an election year. Next year is a new Congress with new members, making an immediate policy deep dive too difficult. But by the time everybody is up to speed in 2015, the presidential election cycle will be in full swing. And come January 2016, things will start all over with a new president and another new Congress and slate of lawmakers.

“If they try to talk about it now for six years, it will never get done,” said the Republican Snider talked to. “If they get to November and they have the guts to do something in the lame duck, that’s where the opportunity is.”

It’s a baldly political calculus for determining the future of the nation’s transportation systems, but that’s business as usual in Washington.

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How the Federal TIGER Program Revived a Cleveland Neighborhood

The "Uptown" development in Cleveland is part a way of construction that a TIGER grant helped catalyze in Cleveland. Photo: MRN

The “Uptown” development in Cleveland was catalyzed by a TIGER grant that helped relocate a rail station. Photo: MRN

Cleveland doesn’t look like a dying Rust Belt city these days in the Little Italy and University Circle neighborhoods. In fact, it looks like it’s thriving.

At the corner of Euclid and Mayfield, a new mixed-use development — MRN’s “Uptown” — is filling out, hosting a bookstore, a bakery, bars, and new apartments. Just across the street, the new home of the Museum of Contemporary Art sits gleaming, in the words of the New York Times, “like a lustrous black gem.” Another major office, retail, and residential project is planned a stone’s throw away.

biden_train

Vice President Joe Biden was in Cleveland Wednesday urging action to invest in infrastructure and preserve the TIGER program. Photo: Angie Schmitt

It’s hard to understate how remarkable this type of investment is in this area. Cleveland’s decades-long population decline has helped make it one of the weakest urban real estate markets in the country.

But this is a sweet spot in Cleveland. The Cleveland Clinic — Ohio’s largest employer — is less than a mile away. So are many of the city’s renowned cultural institutions — the Cleveland Museum of Art, the Cleveland Orchestra, and Case Western Reserve University. About 50,000 people work in the area.

Even so, the new developments in Little Italy might never have happened if not for the U.S. DOT’s TIGER program. Greater Cleveland’s Regional Transit Authority received a grant from the third round of TIGER funding in 2011, which provided about $12.5 million to rebuild and move a rail station from a dark, isolated location under a bridge about a third of a mile away to the middle of the neighborhood.

Local leaders in Cleveland had for years hoped to move the station to help build on the nearby assets. When the RTA applied for funding through TIGER, it was one of 828 projects seeking $517 million in funding. Just 46 of those applicants were awarded grants.

Despite the enormous demand for TIGER, it has been under the constant threat of elimination by the House GOP since the program was launched in 2009. A recent proposal put forward by House Republicans would turn TIGER from a multi-modal program that helps cities and metro areas directly access federal funds into a roads program. Meanwhile, the Senate has proposed a new transportation bill that fails to fund TIGER.

And that’s why Joe Biden was in Cleveland on Wednesday stumping for a new transportation bill that would preserve TIGER. ”This is what we should be doing all over the nation,” said Biden.

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GOP Appropriations Bill Would Turn TIGER Into a Roads Program

As the president’s transportation proposal fades from the news cycle and we eagerly await the Senate Environment and Public Works Committee’s six-year reauthorization bill, here comes the House Republicans’ proposed budget for transportation and housing for next year.

This is what the country's best innovative transportation grant program could become. Photo: ##http://t4america.org/2009/12/11/pew-self-sustaining-highways-are-increasingly-subsidized/##T4America##

This is what the country’s best innovative transportation grant program could become. Photo: T4America

Note: What the House GOP released yesterday wasn’t an authorization bill but an appropriations bill for 2015. So far, there is no authorization guiding transportation spending for 2015, and as such this appropriations bill says that its funding levels are “contingent on the enactment of new transportation authorization legislation.” Nothing can be appropriated that isn’t authorized.

While previous GOP appropriations proposals have eliminated TIGER grant funding altogether, this proposal allocates $100 million for TIGER, down from the $600 million the program got this year. More horrifically, the GOP proposes to limit TIGER grants to projects that “address critical transportation needs,” defined as roads and bridges, ports and freight rail.

And just to be clear about what they mean, the GOP adds, “The legislation does not allow these funds to be used for non-essential purposes, such as street-scaping, or bike and pedestrian paths.” Also ineligible are transit projects that would be eligible for New Starts or other FTA grants, carpool projects, ADA compliance for sidewalks, highway and transit safety improvements, planning, congestion mitigation, intelligent transportation systems, anything related to congestion pricing (including electric toll collection and travel demand management), or recreational trails.

Honestly, if that’s what TIGER would become, maybe it would be best to zero it out altogether.

President Obama’s proposal, released last week, would double the TIGER program. Historically, TIGER has been a way cities and metro areas can bypass their states to go directly to the federal government for funds for multi-modal programs. Transit, biking and walking projects — as well as freight projects that haven’t always had a natural home in other federal funding programs — have done very well with TIGER.

The rest of the GOP appropriations bill’s cuts are mostly notable in their restraint. The bill hews to the bipartisan two-year budget resolution for 2014 and 2015 and not Paul Ryan’s 2015 budget, which would have held transportation spending to the levels available in the Highway Trust Fund.

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Active Transportation Loses a Key Republican Ally as Rep. Tom Petri Retires

For years, if there was a Republican sponsor of a good piece of legislation on active transportation in the House, more often than not it was Tom Petri of Wisconsin. Advocates will be sorry to learn that Rep. Petri has announced that after 35 years in Congress, he will not seek another term.

Tom Petri received the Wisconsin Bike Federation’s Hero Award last year. Photo: Wendy Soucie/Lodi Valley News

Petri is the Republican co-chair of Rep. Earl Blumebauer’s Congressional Bicycling Caucus, he recently helped launch Partnership for Active Transportation, and he’s a regular at the National Bike Summit. But he really stole everybody’s heart when he was the sole committee Republican to vote against the disastrous House transportation bill in 2012. He says he voted against it “primarily because it slashed highway funding for Wisconsin,” but we suspect that if his amendment to restore Safe Routes to School funding had succeeded, he might have decided to support the bill.

When Petri was named chair of the Highways and Transit Subcommittee, it seemed the often-sidelined party outsider would be able to inject a little bit of reason into the proceedings before the passage of a new transportation bill. The hearings he’s held on MAP-21 have been thoughtful, and he’s given considerable attention to the needs of transit, but he hasn’t had much opportunity in the committee to focus on bike and pedestrian issues.

If a bill does pass before a new session begins in January, Petri will have a hand in helping craft it. But if, as most people expect, Congress punts this summer, passing some kind of extension to keep funding going while they stall on finding a sustainable revenue source, Petri will likely be out by the time real negotiations get going.

Streetsblog has requested an exit interview with Rep. Petri before he leaves office. We look forward to bringing you his parting thoughts.

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Paul Ryan’s New Budget Seeks to “Murder” Amtrak

Just four months ago, the country was hailing a bipartisan budget deal negotiated by Senate Budget Committee Chair Patty Murray and her House counterpart, Paul Ryan. It was a respite from the deeply partisan posturing over spending that has gridlocked Washington for years. Even better, it was a two-year budget resolution, meaning it seemed the next fight would be a long way off.

Rep. Paul Ryan released an unnecessary budget proposal just to show off how badly he'd destroy transportation. Photo: ##https://www.flickr.com/photos/gageskidmore/5446900144/##Gage Skidmore/flickr##

Rep. Paul Ryan released an unnecessary budget proposal to show off his deficit hawk bona fides.
Photo: Gage Skidmore/Flickr

Not long enough.

This week, Ryan unveiled a new “Path to Prosperity,” the title he puts on all of his attempts to starve the federal government.

Ryan didn’t have to release a budget this year, but as USA Today reports, “Republicans have long emphasized the importance of outlining the party’s philosophical priorities, even if [it] stands no chance of becoming law.” In an election year, Ryan appears eager to play up his deficit hawk bona fides and put his cooperative work with Democrats behind him.

No one could accuse Ryan of cozying up to Democrats this time around.

“This proposal takes a partisan jackhammer to our transportation infrastructure at a time when we need to be working together to find ways to rebuild it,” said Rep. Nick Rahall, the senior Democrat on the House Transportation Committee, in a statement. “This is budget déjà vu. Just like last year, this proposal is another road to ruin, not a ‘path to prosperity.’”

While this week’s budget plan technically fits within the broad outlines of December’s bipartisan agreement, the details Ryan fills in would never have been passed by the Senate or signed by Obama.

Ryan acknowledges that “efforts need to be made to find a long-term solution to the [highway] trust fund’s financial challenges,” and asserts that he places a priority on keeping it funded with user fees. But he has never supported a gas tax increase, and he doesn’t do so here. Instead, Ryan merely slashes spending — the same unimaginative and destructive plan Rep. John Mica had a few years ago that was booed off the stage.

According to Kevin DeGood, director of infrastructure policy at the Center for American Progress, Ryan’s new plan would cut surface transportation funding by $172 billion over the next 10 years.

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