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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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President Obama’s Hollow Push for Infrastructure Investment

With the Tappan Zee Bridge behind him, President Obama made his case for more infrastructure spending. Photo: ##https://twitter.com/TheObamaDiary/status/466676032834387969/photo/1##TheObamaDiary/Twitter##

With an old highway bridge and the cranes building its replacement behind him, President Obama made his case for more infrastructure spending. Photo: TheObamaDiary/Twitter

This afternoon, President Obama stood by New York’s Tappan Zee Bridge and made a speech pressing Congress to do something about infrastructure investment. It’s part of his Infrastructure Week push for Congress to pass a fully funded transportation reauthorization bill. Many other groups are spending this week sounding the same horn.

“If they don’t act by end of summer, federal funding for transportation projects will run out. The cupboard will be bare,” Obama said today. “Nearly 700,000 jobs will be at risk.”

“So far, at least, the Republicans who run this Congress seem to have a different priority,” he said. “Not only have they prevented, so far, efforts to make sure funding is still in place for what we’ve already got, but their proposal would actually cut job-creating grant programs that funded high-priority transportation projects in all 50 states — they’d cut ‘em by about 80 percent.”

Indeed, Obama has submitted a bill to Congress calling to increase federal transportation investment to $302 billion over the next four years. The problem is, his plan to pay for it — using what he calls “pro-growth” business tax reform and the repatriation of offshore profits — is falling on deaf ears in Congress. Advocates criticize the plan as a one-time gimmick, not a long-term funding source.

The most obvious and simple method of raising more revenue in the long run is to increase the gas tax, which hasn’t been raised since 1993 and has lost an estimated 37 percent of its purchasing power. Experts say an increase of 10 to 15 cents per gallon is needed to fill the gap in the nation’s transportation funding.

But the Obama administration has been adamant in its refusal to raise the gas tax. Though former Transportation Secretary Ray LaHood came out in favor of a 10 cent hike almost as soon as he left office, he toed the official line while at U.S. DOT, insisting that a hike was a non-starter. At a Commerce Committee hearing last week, LaHood’s successor, Anthony Foxx, disappointed senators by dodging a question about increasing the gas tax, saying only that he would “listen to Congress.”

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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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Uh-Oh: Senate Finance Committee Draws a Blank on Transpo Funding

The Senate Environment and Public Works Committee is on the verge of releasing its proposal to reauthorize the federal transportation program until 2021. But it’s counting on the Senate Finance Committee to figure out how to pay for it. And that committee seems disturbingly far from an answer.

Sen. Barbara Boxer testified today before the Senate Finance Committee, asking members to come up with $18 billion a year for her spending plan.

Sen. Barbara Boxer testified today before the Senate Finance Committee, asking members to come up with $18 billion a year for her spending plan.

The Highway Trust Fund (yes, that’s still what it’s called) is projected to run out of money in August. U.S. DOT is planning to slow down reimbursements to states this summer and is hoping that Congress will act to prevent the agency from taking austerity measures in the next fiscal year. 

Without more cash, Joseph Kile of the Congressional Budget Office said, highway spending would have to decrease by more 30 percent over next decade and transit spending would drop by at least 65 percent.

The EPW Committee is getting ready to unveil its bill any day now, a six-year bill at current funding levels plus inflation. (That’s the same formula as the current bill, meaning transportation investment would be stuck at 2009 levels until 2021 without getting a raise, despite much angst over the nation’s diminishing performance in global infrastructure rankings.)

Current levels-plus-inflation is the middle ground between aligning spending with meager gas tax revenues and investing at the levels that would actually make a difference in the state of U.S. infrastructure. At least the committee is planning a long-term bill, which can give states and cities a little more assurance that they can plan around the federal contribution.

But as EPW Chair Barbara Boxer told the Senate Finance Committee this morning, her bill requires Finance to find $18 billion next year alone to fill the holes in the Highway Trust Fund. And the senators on the Finance Committee haven’t given any indication that they have any better idea than the rest of us where that money’s going to come from.

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How the GROW AMERICA Act Could Modernize Federal Transportation Policy

Yesterday, U.S. DOT did something it hadn’t done for a decade: submit a surface transportation authorization bill to Congress.

The Indianapolis Cultural Trail is one of many game-changing, innovative projects that the TIGER grant program has helped create. Under U.S. DOT's bill, TIGER would become a permanently authorized program with $5 billion to spend over four years. Photo: ##http://www.urbanindy.com/2010/11/18/pedestrianizing-downtown-indianapolis/##UrbanIndy##

The Indianapolis Cultural Trail is one of many game-changing, innovative projects that the TIGER grant program has helped create. Under U.S. DOT’s bill, TIGER would become a permanently authorized program with $5 billion to spend over four years. Photo: UrbanIndy

And what a bill it is. The $302 billion, four-year GROW AMERICA Act has several major reforms that would shift federal policy in a more multi-modal direction. One big change that we’ve noted before is that transit would get a bigger slice of the pie, but there are several other new proposals worth a look.

Before our overview, a caveat: President Obama’s funding plan — although it may align with that of the head tax man in the Republican House — has already been dismissed as a political non-starter. And Democratic Senator Barbara Boxer has indicated she’s not in the mood for major policy changes this go-round. So, take this bill for what it is: a blueprint of the administration’s vision and a menu of options that, in an ideal scenario, Congress would pick and choose from in crafting the bill.

Here’s some of the best of what the bill does:

  • Changes the Highway Trust Fund into a multi-modal Transportation Trust Fund. The bill would replace the current system’s highway-centric orientation, which shunts transit funding off to the side, with a truly multi-modal trust fund. It would include not just highways and transit but also intercity rail (which has long been marginalized in a separate bill and funded with unpredictable general funds) and the popular TIGER grant program (which has a history of funding innovative, multi-modal projects). The TTF would also include the New Starts/Small Starts transit grant program, which has historically been funded with general funds, separately from the trust fund.
  • Allows tolling — including congestion pricing — on existing Interstate lanes. For highways that are part of the Interstate system, the rule has always been that tolling is only allowed on road expansions, which is one reason you often see agencies widen highways when they implement HOT lanes, for instance. But upkeep of existing highways is expensive and states have struggled to find ways to pay for it. Some states, like Pennsylvania, have been seeking expanded tolling authority for years, to no avail. In this bill, the administration proposes to allow the tolling of Interstates for the purpose of reconstructing them or — and this is the really exciting part — “for the purpose of reducing or managing high levels of congestion.” Each case would still need the sign-off of the U.S. DOT secretary. The bill also explicitly says that toll revenue can be used for transit and for environmental improvements along the highway corridor. ”One criticism of congestion pricing has been that it hurts low-income people,” says Kevin DeGood of the Center for American Progress. “Using toll revenues to subsidize transit within the corridor ensures greater equity while also improving performance for drivers and freight carriers.”
  • Makes TIGER permanent and creates a new competitive grant program. TIGER would get $5 billion total over four years and no longer have to fight for its place in an appropriations bill every year. The GROW AMERICA Act also calls for a new program called FAST (Fixing and Accelerating Surface Transportation). FAST seeks to spread what U.S. DOT considers to be “best practices,” including the integration of transportation planning with land use and economic development, as well as funding mechanisms that “convey the full social cost of travel decisions to users” and giving local governments the authority to raise funding for transportation — which some cities have struggled with for years. Indianapolis, for instance, had to fight hard to get authority from the Indiana legislature to go directly to voters for more transportation funding. The FAST program would further these best practices and be funded at $1 billion annually.

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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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Moody’s: Future Is Bright for U.S. Transit Sector

Yes, federal funding for transportation is expected to go negative before Congress is even due to pass a new bill. And yes, transit systems had a tough few years, cutting service and raising fares as the recession took a bite out of revenues. But guess what? In a credit outlook report released this week, Moody’s credit rating service says the outlook for the transit sector is positive.

More riders and higher sales taxes make for a sunny financial outlook for transit. Photo: ##http://www.newsday.com/long-island/lirr-commuters-pack-trains-a-week-after-sandy-1.4188094##Newsday##

More riders and higher sales taxes make for a sunny financial outlook for transit. Photo: Newsday

APTA’s release of new transit ridership numbers, showing that the number of transit trips has reached a level not seen since 1956, was the impetus for the report. “Strong ridership is credit positive for US mass transit authorities,” Moody’s notes.

Moody’s credit outlook reports are available only to subscribers.

Still, high ridership doesn’t guarantee strong financial footing for transit. The farebox covers only 36.5 percent of transit operating expenses nationwide. During the recession, rising ridership was actually a stress on the system, since it coincided with plummeting sales tax revenues as consumer confidence fell. But the stars seem to be aligning now.

Sales tax revenues are healthier, growing about 5.5 percent last year. Some agencies are restoring service they were forced to cut. Voters continue to approve transit funding measures by a large majority. There’s a flurry of activity on transit expansion and renovation.

Most U.S. transit systems issue bonds secured by sales tax revenues, though some are backed by net operating revenues. Both of those are in pretty good financial shape right now, said Nick Samuels, vice president and senior analyst at Moody’s. While Moody’s doesn’t issue a rating for the transit sector overall, the average rating of the 42 agencies that issue bonds backed by sales taxes is an AA2 — the third highest possible rating.

Rising ridership has financial benefits outside of just farebox recovery, too. “If more people in the city are utilizing a system, the city at large has more of an incentive to keep the system running,” Nowicki said. “If a city has a heavy reliance on transit that only gets heavier, the political environment would favor it. Any proposed tax increases are more likely to be approved by a tax base that actually uses the system than one that does not.”

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Shuster “Encouraged” By Obama’s Transportation Funding Announcement

Bill Shuster is still digesting yesterday’s twin funding proposals from President Obama and Ways and Means Chair Dave Camp, but he’s “encouraged” by what he’s heard. Both proposals rely on corporate tax reform to plug the hole in the highway trust fund. Camp’s proposal would raise about $125 billion; Obama’s, $150 billion. Neither has yet released details on how their plans would work.

T&I Chair Bill Shuster wants to "build on" the reforms in MAP-21. Photo: ##http://www.heraldstandard.com/election/shuster-supports-romney-in-gop-primary/article_ba7064fe-de09-5e42-b291-e95983b33a45.html##Herald-Standard##

T&I Chair Bill Shuster wants to “build on” the reforms in MAP-21. Photo: Herald-Standard

“I never thought some of these other ideas were ever going to be in the cards,” the House Transportation Committee chair told reporters this afternoon.

Speaking today at the annual Washington meeting of the American Association of State Highway and Transportation Officials (AASHTO), Shuster said he was hoping to get a surface transportation reauthorization bill done this summer. Sen. Barbara Boxer has put her committee’s timeline at mid- to late-spring, using August as a deadline, when federal highway funds are expected to run out. The current MAP-21 bill expires September 30, and Shuster is using that as his deadline.

Shuster told AASHTO that he’s committed to a “fiscally responsible” bill that doesn’t engage in deficit spending, and that he hopes to “build on the reforms in MAP-21,” some of which haven’t even been implemented yet.

“He kind of implied that we’re done with reform,” commented Joshua Schank of the Eno Center for Transportation after Shuster’s remarks. “I don’t think we’re done with reform by a long shot.”

Schank’s primary objection to the status quo is that too much money is distributed by formula and not by merit. And funding transportation with corporate tax reform could potentially open the system up to more discretionary grant programs, Schank said, which would be a positive development. The most innovative transportation work — TIGER, New Starts — happens with general fund money, he said.

“The problem with destroying the user-pay model is that you potentially put funding in jeopardy all the time and you constantly have to go back and find new sources of funding,” Schank said. “But the benefit is, I think there’s a much better chance of reforming how we spend it — making it more multimodal in distribution — if it’s not just coming from highway users.”

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Live-Blogging Obama’s Transportation Announcement

obama3:59 p.m.: Obama says funding for these projects is going to be in jeopardy unless Congress passes a new transportation bill. Doesn’t go into details. “God Bless the United States of America,” and we’re out.

3:56 p.m.: People go wild for new Metro green line, which will run through Union Depot. Obama says he just got a look at those “spiffy new trains.” “You’ll be able to get from one end of town to another in 30 minutes. And here’s the best part: Not only have you made a more efficient transportation system… this Depot has also helped to boost economic development. Just across the street, the old post office building is becoming apartments and shops.”

3:54 p.m.: Obama: Infrastructure shouldn’t be a partisan issue. But some Republicans in Congress — it’s not that they don’t like roads; they just don’t want to pay for ‘em. “While Congress is trying to decide what to do next, I’m going to do what I can to create good jobs. And that’s why I came to St. Paul. Because [Union Depot] symbolizes what’s possible.”

3:53 p.m.: Obama: I’m going to send Congress a budget with a four-year transportation budget to pay for investments by simplifying tax codes.

3:49 p.m.: Obama: Put America back to work by repairing America’s infrastructure. Housing bubble burst, construction workers were hit hard. Unemployment in that sector has been cut in half but still too high. 100,000 bridges old enough to qualify for Medicare. Minnesota winters mean potholes.

3:48 p.m.: “We can’t wait. We gotta move.” Obama reiterating new plan to bypass Congress where they move too slow.

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Obama to Propose Four-Year Transpo Bill Funded By “Business Tax Reform”

President Obama will unveil a proposal for a $302 billion, four-year transportation bill during a speech today in Minnesota, according to an announcement from the White House. A fact sheet from the administration indicates the proposal would increase dedicated funding for transit more than funding for highways.

Obama will appear in St. Paul, Minnesota today to announce a new transportation plan he says is part of his "year of action." Photo: PRX.org

Obama will appear in St. Paul, Minnesota today to announce a new transportation plan. Photo: PRX.org

The proposal would represent a 38 percent spending increase over the current $109 billion, 2-year law, known as MAP-21, and is the most concrete long-term transportation bill proposed by the Obama administration, which has never put forward a funding stream until now.

The $300 billion spending plan does not raise the gas tax. Instead, it calls for directing some $150 billion from “business tax reform” to help shore up the Highway Trust Fund, which is set to go broke late this summer. The White House has not released more information about how the funding stream would operate, but the press release calls it ”one-time transition revenue,” so the idea seems to be that in four years, a different revenue stream would have to be identified.

The White House announcement said Obama’s proposal “will show how we can invest in the things we need to grow and create jobs by closing unfair tax loopholes, lowering tax rates, and making the system more fair.”

Such a funding method would represent a major break from relying on the gas tax to pay for the national transportation program. The gas tax hasn’t been raised in two decades, and inflation and rising fuel efficiency have eroded its value. In 2012, the federal gasoline tax brought in $35 billion, but the feds allocated $54 billion in transportation spending, with other sources, including general tax revenues, making up the difference.

Obama will also announce the upcoming $600 million round of funding for TIGER, US DOT’s popular competitive grant program for local transportation projects, which has already been approved by Congress. The program has funded $1 billion in city transit projects, nearly as much for intercity rail, and $153 million in biking and walking projects since it was introduced in 2009.

More details about the president’s “vision for a 21st century transportation infrastructure” will be available after the speech today in St. Paul, which will take place inside the city’s restored Union Depot train station.