SAFETEA-LU Reauthorization Context & Issues


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Presented by Ron Epstein, Chief Financial Officer, NYSDOT

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  • This slides shows the % of programs that make up New York State’s transit funding. Largest programs for NY: Urbanized Area formula funds; Fixed Guideway Modernization. Still well below our nation’s share of transit use (1/3 of the nation) While New Start funding was significant during SAFETEA-LU, it will decline significantly once current full funding grant agreements for east Side Access and Second Avenue Subway projects are complete. There are no new State projects in the New Start process pipeline that will be ready to receive significant funds.
  • SAFETEA-LU Reauthorization Context & Issues

    1. 1. SAFETEA-LU Reauthorization Context & Issues New York State Department of Transportation Spring 2011
    2. 2. A Strong Federal Partnership is Essential <ul><li>New York receives approximately $3.3 billion annually in federal highway and </li></ul><ul><li>transit funding </li></ul><ul><li>Federal funds are an essential component of DOT and MTA Capital Programs: </li></ul><ul><li>50% of DOT’s highway and bridge capital program - $1.6 billion annually </li></ul><ul><li>25% of the MTA transit capital program - $1.7 billion annually </li></ul><ul><li>75% of Downstate Suburban and Upstate transit capital program – about $200 million annually </li></ul><ul><li>Balance of payments – Transportation program one of very few that New York receives more back than it contributes to Washington </li></ul><ul><li>The transportation construction/service sector support approximately 400,000 jobs in NYS </li></ul><ul><li>Every billion in transportation investments creates or sustains 24,000 jobs </li></ul>
    3. 3. Federal Transportation Funding to NYS By Categorical Program – Highway and Transit Red = Transit Programs Blue = Highway Programs
    4. 4. 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. (1)
    5. 5. National and State Infrastructure Needs <ul><li>National </li></ul><ul><li>Two National Congressional Commissions have called for a doubling of transportation investment to meet infrastructure modernization needs </li></ul><ul><li>$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 </li></ul><ul><li>$59 billion annually is needed to improve transit conditions; less than 25% of this amount is currently provided from all levels of government </li></ul><ul><li>State </li></ul><ul><li>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 </li></ul><ul><li>NYSDOT spends approximately $2.0 billion annually on construction and maintenance to slow the rate of declining system conditions </li></ul><ul><li>The MTA spends approximately $3 billion to $4 billion annually to achieve a state of good repair within its systems </li></ul><ul><li>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% </li></ul>
    6. 6. New York’s Eroding Share of Federal Formula Funding The State share of the federal highway and transit programs has declined since 1991 “ TEA” Bill Highways Transit ISTEA - 1992-97 5.3% 21.2% TEA-21 - 1998-03 4.8% 19.7% SAFETEA-LU - 2004-09 4.6% 18.1%
    7. 7. Reauthorization Outlook <ul><ul><li>The current transportation authorization, SAFETEA-LU, expired September 30, 2009 and has been extended seven times. The current extension expires on September 30, 2011 </li></ul></ul><ul><li>The Highway Trust Fund can no longer support existing program funding levels and there is no support for increasing the federal gas tax </li></ul><ul><li>House is proposing to realign program size with existing revenues, resulting in a reduction of up to 30 percent in highway and transit funding </li></ul><ul><li>Senate - ”Moving Ahead for Progress in the 21 st Century (MAP-21).” Funds programs at current levels within increases for inflation </li></ul><ul><li>Administration released its proposal on February 14, 2011. Provides a positive blueprint for a sustained national investment in transportation infrastructure </li></ul><ul><li>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. </li></ul>
    8. 8. Commonalities <ul><li>No clear path to fund highway/transit programs at current levels </li></ul><ul><li>Highway/transit program consolidation </li></ul><ul><li>Limiting federal interest in transportation </li></ul><ul><li>Streamlining program/project delivery </li></ul><ul><li>Innovative finance/infrastructure bank </li></ul><ul><li>Freight/passenger rail??? </li></ul><ul><li>No earmarks </li></ul><ul><li>No bill language </li></ul><ul><li>No time on Congressional calendar </li></ul>
    9. 9. Immediate Transportation Priorities <ul><li>Ensure sufficient revenue are available in the federal highway trust fund to support existing highway and transit program spending </li></ul><ul><li>Authorize annual highway and transit funding at no less than fiscal year 2010 levels </li></ul><ul><li>Continue current funding allocation formulas </li></ul>
    10. 10. Longer-Term Reauthorization Principles <ul><li>Enact a multiyear transportation bill with strong, sustainable, predictable investment levels to support economic growth </li></ul><ul><li>Preserve a strong federal role in transportation without shifting more of the funding requirements to state and local governments </li></ul><ul><li>Make revitalization of the existing highway and transit infrastructure a top priority, along with adding transit capacity </li></ul><ul><li>Restore “needs-based” formulas to allocate federal highway and transit funding, not formulas based on fuel usage factors or need for new highway capacity </li></ul><ul><li>Streamline and reduce the project development and project delivery process mandates for highway and transit </li></ul><ul><li>Apportion more funding based on formulas, not discretionary programs (earmarks) that reduce funding certainty </li></ul><ul><li>Align Transportation, Energy, and Climate Change Policies - New York has the lowest per capita fuel use of any state in the nation </li></ul><ul><li>  </li></ul>
    11. 11. New York Reauthorization Priorities <ul><li>Maintain current funding balance between transit and highway programs </li></ul><ul><li>Retain federal bridge formula program </li></ul><ul><li>Retain transit rail modernization and urbanized area formula programs </li></ul><ul><li>Complete funding for MTA New Starts </li></ul><ul><li>Funding to reconstruct urban Interstate highways </li></ul><ul><li>Maintain NYS’s current share of highway and transit funding </li></ul>
    12. 12. Issues to Watch <ul><li>A shift away from formula funding in favor of “competitive” or discretionary programs (earmarks) such as TIGER/TIGGER (reduces certainty) </li></ul><ul><li>Attempts to directly tie transportation funding to performance measures </li></ul><ul><li>Changes to the transit Fixed Guideway Modernization that would hurt older, more heavily utilized systems </li></ul><ul><li>Efforts to reduce or eliminate general fund contributions to transit or to limit HTF contributions to transit </li></ul><ul><li>Efforts to increase the share of FTA funding for rural and specialized programs at the expense of urbanized areas </li></ul>
    13. 13. Opportunities for Collaboration <ul><li>Educate newer /returning members of Congress and staff on programs, policy and funding issues </li></ul><ul><li>Invite members to your system when in the district </li></ul><ul><li>Provide details on positive local economic impact/manufacturing </li></ul><ul><li>Collaborate with local construction contractors, chambers of commerce, local cancer society, others </li></ul>