SAFETEA-LU ReauthorizationContext & Issues

New York State Department of Transportation

Spring 2011

A Strong Federal Partnership is Essential

New York receives approximately $3.3 billion annually in federal highway andtransit funding

Federal funds are an essential component of DOT and MTA Capital Programs:

• 50% of DOT’s highway and bridge capital program - $1.6 billion annually

• 25% of the MTA transit capital program - $1.7 billion annually

• 75% of Downstate Suburban and Upstate transit capital program – about $200 million annually

• Balance of payments – Transportation program one of very few that New York receives more back than it contributes to Washington

• The transportation construction/service sector support approximately 400,000 jobs in NYS

• Every billion in transportation investments creates or sustains 24,000 jobs

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Federal Transportation Funding to NYS By Categorical Program – Highway and Transit

Red = Transit ProgramsBlue = Highway Programs

State Share of Transit Funding by Categorical Program

Other (3.3%) Includes:

Metro and State Planning – 0.7%Elderly/ Disabled - 0.5%Non-Urbanized (Rural) - 1.0%Clean Fuel Bus – 0.1%Alternatives Analysis - 0.1%Job Access/Reverse Commute – 0.6%New Freedom – 0.3% (1) NYS Share driven by East Side Access/Second Avenue Subway, non-

recurring.

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National and State Infrastructure Needs

National

• Two National Congressional Commissions have called for a doubling of transportation investment to meet infrastructure modernization needs

• $166 billion annually is needed to improve highway and bridge conditions; less than half of this amount is currently provided from all levels of government

• $59 billion annually is needed to improve transit conditions; less than 25% of this amount is currently provided from all levels of government

State

• New York should be spending $1 billion a year to rebuild the State’s interstates over the next 20 years; we have just $200 million per year available

• NYSDOT spends approximately $2.0 billion annually on construction and maintenance to slow the rate of declining system conditions

• The MTA spends approximately $3 billion to $4 billion annually to achieve a state of good repair within its systems

• Of 8,700 buses for system other than the MTA (Upstate/Downstate Suburban), we should be replacing 870 buses per year; we have the funds to replace roughly 50%

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New York’s Eroding Share of Federal Formula Funding

“TEA” Bill Highways Transit

ISTEA - 1992-975.3% 21.2%

TEA-21 - 1998-034.8% 19.7%

SAFETEA-LU - 2004-094.6% 18.1%

The State share of the federal highway and transit programs has declined since 1991

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Reauthorization Outlook

• The current transportation authorization, SAFETEA-LU, expired September 30, 2009 and has been extended seven times. The current extension expires on September 30, 2011

• The Highway Trust Fund can no longer support existing program funding levels and there is no support for increasing the federal gas tax

• House is proposing to realign program size with existing revenues, resulting in a reduction of up to 30 percent in highway and transit funding

• Senate - ”Moving Ahead for Progress in the 21st Century (MAP-21).” Funds programs at current levels within increases for inflation

• Administration released its proposal on February 14, 2011. Provides a positive blueprint for a sustained national investment in transportation infrastructure

• Recommends $556 billion over six year period, including significant funding increases for highway, transit and passenger rail programs. Includes $53 billion for High-Speed Rail and $30 billion for a national Infrastructure Bank.

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Commonalities

• No clear path to fund highway/transit programs at current levels• Highway/transit program consolidation• Limiting federal interest in transportation• Streamlining program/project delivery• Innovative finance/infrastructure bank• Freight/passenger rail???• No earmarks• No bill language• No time on Congressional calendar

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Immediate Transportation Priorities

• Ensure sufficient revenue are available in the federal highway trust fund to support existing highway and transit program spending

• Authorize annual highway and transit funding at no less than fiscal year 2010 levels

• Continue current funding allocation formulas

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Longer-Term Reauthorization Principles• Enact a multiyear transportation bill with strong, sustainable, predictable investment levels to support economic

growth

• Preserve a strong federal role in transportation without shifting more of the funding requirements to state and local governments

• Make revitalization of the existing highway and transit infrastructure a top priority, along with adding transit capacity

• Restore “needs-based” formulas to allocate federal highway and transit funding, not formulas based on fuel usage factors or need for new highway capacity

• Streamline and reduce the project development and project delivery process mandates for highway and transit

• Apportion more funding based on formulas, not discretionary programs (earmarks) that reduce funding certainty

• Align Transportation, Energy, and Climate Change Policies - New York has the lowest per capita fuel use of any state in the nation

 

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New York Reauthorization Priorities

• Maintain current funding balance between transit and highway programs

• Retain federal bridge formula program

• Retain transit rail modernization and urbanized area formula programs

• Complete funding for MTA New Starts

• Funding to reconstruct urban Interstate highways

• Maintain NYS’s current share of highway and transit funding

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Issues to Watch

• A shift away from formula funding in favor of “competitive” or discretionary programs (earmarks) such as TIGER/TIGGER (reduces certainty)

• Attempts to directly tie transportation funding to performance measures

• Changes to the transit Fixed Guideway Modernization that would hurt older, more heavily utilized systems

• Efforts to reduce or eliminate general fund contributions to transit or to limit HTF contributions to transit

• Efforts to increase the share of FTA funding for rural and specialized programs at the expense of urbanized areas

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Opportunities for Collaboration

• Educate newer /returning members of Congress and staff on programs, policy and funding issues

• Invite members to your system when in the district

• Provide details on positive local economic impact/manufacturing

• Collaborate with local construction contractors, chambers of commerce, local cancer society, others

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