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Transportation Bill: An Early Christmas Present or a Lump of Coal?

By Niraj Chokshi
Staff Reporter
July 2, 2012 | 8:30 a.m.
  • 2

They finally did it. In an 11th-hour turnaround, Congress passed a compromise transportation reauthorization (including a student loan interest rate extension and flood insurance reauthorization).

The 599-page bill reduces the number of highway programs by two thirds. The controversial coal ash and Keystone XL provisions House Republicans pushed for were dropped, but the streamlining provisions they wanted made it in, including exempting from environmental review certain emergency infrastructure replacements and programs that receive less than $5 million in federal funds. The cuts aren't as deep as many conservatives wanted and the concessions went too far for some Democrats.

Transportation enhancement funding--for things such as bike paths--remains, but a compromise split the funding between localities and states, which have an opt-out. The bill reduces the deficit by $16.3 billion over the next decade, according to the nonpartisan Congressional Budget Office. The Highway Transit Fund, the key funding source for highway projects, will be exhausted some time in fiscal year 2015.

What do the changes to the transportation enhancement program mean for bike paths and alternate transit? Is the program consolidation going to work? Will the streamlining really help to speed up products? What more could the bill have done to accelerate project delivery? What critical provisions is the deal missing? Is this bill an early Christmas present or a lump of coal?

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July 6, 2012 5:23 PM

Federal taxpayers pay enough for transit

By Gabriel Roth

Research Fellow, The Independent Institute

Larry Hanley’s job is to fight for the interests of his union’s members, and he does this very successfully. Indeed, his success even contributes to transit’s woes. But he does not enhance transit’s image by asserting that it cannot survive without increased federal largesse.

Transit provides about 2 per cent of passenger mileage in the US, and receives about 20 per cent of federal surface transportation subsidies. Some might believe that even this is too much.

Transit is a local service. If local people, aided by local authorities and states, are not prepared to cover all of transit’s costs, why should federal taxpayers pay for these enhancements? Why should farmers in Ohio pay for transit systems in Hawaii and Virginia?

The Amalgamated Transit Union does a better job at running its finances than does the US Congress in running the federal government’s. The ATU’s finances are in surplus while the federal government’s are in deficit. The costs of the recently passed MAP-21 Transportation bill do not seem to be covered by revenues. And Larry Hanley wants these deficits to increase? He cannot be serious!

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July 5, 2012 6:53 PM

Death blow to mass transit

By Larry Hanley

The new federal transportation bill fails mass transit, riders and workers. It not only does nothing to address the current mass transit crisis, but it will make it much worse. It deals, in effect, a death blow to mass transit.

It’s actually a tax-increasing bill that will impose hidden taxes on commuters and transit riders by raising fares while forcing cash-strapped transit systems to cut more service

Anyone familiar with public transportation knows that American mass transit is in trouble. In fact over 85% of U.S. transit systems have been forced to cut service, raise fares, or both since the beginning of the recession. This has created a real hardship for thousands across the country for whom public transportation is a vital necessity.

The bill guts provisions from the bipartisan Senate bill, which would have provided much-needed flexibility for transit systems to use some of their federal funding for keeping service on the street and creating jobs. Tragically theconference committee also failed to address the commuter tax c...

The new federal transportation bill fails mass transit, riders and workers. It not only does nothing to address the current mass transit crisis, but it will make it much worse. It deals, in effect, a death blow to mass transit.

It’s actually a tax-increasing bill that will impose hidden taxes on commuters and transit riders by raising fares while forcing cash-strapped transit systems to cut more service

Anyone familiar with public transportation knows that American mass transit is in trouble. In fact over 85% of U.S. transit systems have been forced to cut service, raise fares, or both since the beginning of the recession. This has created a real hardship for thousands across the country for whom public transportation is a vital necessity.

The bill guts provisions from the bipartisan Senate bill, which would have provided much-needed flexibility for transit systems to use some of their federal funding for keeping service on the street and creating jobs. Tragically theconference committee also failed to address the commuter tax credit, which would have provided anyone who takes public transit to work the same much-needed subsidy as those who drive each day.

Congress’ refusal to face up to the transit funding crisis will lead to a downward spiral of service cuts and fare increases that will eventually cripple many governments’ ability to provide any public transit at all.

Meanwhile in 2011 ridership on the nation’s commuter trains and buses hit one of the highest levels in decades, with Americans taking 10.4 billion trips on mass transit – which includes buses, trains, street cars and ferries.

The bill just passed by Congress seems tailor-made to deny service to this burgeoning ridership, forcing them into automobiles on already-clogged city streets.

And what about the poor, seniors, and persons with disabilities? Will they even be able to afford to use the service that remains?

Our government is spending $2 billion a week to fight wars and rebuild cities halfway around the world, but it allows our own cities and their transit systems to get worse by the day.

Already, Detroit is planning to make cuts that have led some to question the viability of the system. Drastic service reductions are also planned in Pittsburgh which will make it much harder for commuters and transit-dependent people to get around the city. And this is just the tip of the iceberg.

These service reductions and fare hikes should be seen as what they really are – hidden tax increases levied on riders who can least afford it to help pay for the tax cuts given to the rich.

It doesn’t have to be this way. Mass transit is a stimulant for the economy in so many ways.

Direct investment into transit operations means more public transportation and lower fares, which in turn helps local businesses. It brings people with jobs to their stores with more money in their pockets so they can buy things.

It means more jobs. Each $10 million invested in transit operations creates more than 570 jobs in the short term. According to American Public Transportation Association (APTA) data, every $1 billion invested in public transportation creates and supports 36,000 American jobs.

Unfortunately congress doesn’t understand that, and they blew a real opportunity with this transportation bill.

This legislation will continue to starve public transportation to the detriment of our nation. The resulting long, slow death of mass transit will hurt the environment, weaken commerce, and restrict the mobility of many who have no other way to get around.

ATU and transit advocates nationwide will be working to elect candidates this fall who understand the foolishness of this policy

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