(Source: The Transport Politic)

The Federal Transit Administration releases its budget for FY ‘10, and recommends new transit capital projects

On Friday, the Obama Administration released details on its proposed budget for fiscal year 2010. The recommended appropriations affect each agency, and will have to be approved by Congress in a succession of relevant bills before they become law, but since Democrats control both the executive and legislative branches, there are likely to be few divergences from the President’s proposals.

The Federal Transit Administration’s budget will increase to $10.34 billion this year, up from $10.23 billion in FY 2009. These amounts were set in stone by the 2005 surface transportation bill, SAFETEA-LU, so there was little expectation that the President would propose massive increases in funding for public transportation. However, the budget significantly expands funding for New and Small Start transit capital projects, from $1.57 billion in ‘09 to $1.83 billion in ‘10. ARRA stimulus funds were included in FY ‘09.

Because the dedicated highway trust fund, which funds highways and transit and which relies on fuel tax revenues, is running out of cash as people drive less and automobiles become more frugal, the government needs a new source of funds for transportation. This year, as in 2008, the Hosue and Senate will likely have to divert general fund revenues to compensate, and the budget assumes that fact, proposing that a large percentage of both transit and highway money be appropriated directly by the Congress.

Along with the general budget, the Department of Transportation released itsannual New Starts Report. This document, which is well worth reading through if you have the time, documents the federal government’s commitment to funding new transit corridors in the United States. The FTA rated and recommended a number of new corridors for funding — five major New Starts projects and five Small Start projects in addition to several already announced over the past year.

Click here to read the rest of this interesting analysis (Note: It is a lengthy analysis too).

(Source: American Public Transportation Association via More Riders)

Many transportation industry minds are wondering what is the tangible benefits from all this investment in transit? After spending nearly one billion dollars through their public transportation agencies, what do the taxpayers stand to reap?

 According to a new report by the American Public Transportation Association, 30,000 jobs (besides better public transportation).   That comes out to one new job for every $33,333 in spending. Not bad at all, as economic development projects go.   

The study report released on April 29th shows that investing in public transportation provides jobs to the American workers who may need them the most.  Job Impacts of Spending on Public Transportation: an Update shows that two-thirds (67 percent) of the jobs created by capital investment in the public transit industry replaces lost blue-collar jobs with “green jobs” in the public transit sector.  The Economic Development Research Group prepared the study for the American Public Transportation Association (APTA). 

Overall, the study shows an investment of one billion dollars in public transportation supports and creates 30,000 jobs in a variety of sectors.  Based on these projections, the American Recovery and Reinvestment Act of 2009 (ARRA), which provides $8.4 billion for public transportation projects, will create approximately 252,000 jobs for Americans and help transit systems meet the steadily growing demand for public transit services.  APTA released the study at the U.S. House of Representatives Transportation and Infrastructure Committee hearing Recovery Act: 10-Week Progress Report for Transportation and Infrastructure Programs.

“The ultimate goal in any economic recovery plan should be to not create just any type of job, but rather to invest in and focus on areas particularly hit hard by the economic downturn,” said William W. Millar, APTA president.  “The investment in public transit not only produces green jobs but also provides for a more sustainable transportation system that will help reduce our dependence on foreign oil and lessen the transportation sector’s impact on the environment.”

The study reveals that two out of three (67 percent) of these new construction and manufacturing “green jobs” resulting from public transit capital investment typically fall in the category of Blue-Collar Semi-Skilled (59 percent) and Blue-Collar Skilled (8 percent).  These jobs include positions in manufacturing, service, repair worker, drivers, crew, ticket agents and construction. 

In addition, 33 percent of the new jobs as a result of public transit investment fall in the White-Collar Skilled (32 percent) or White Collar Semi-Skilled (1 percent) category.  These jobs include clerical, managerial and technical engineers.

Some of the key findings from this study are here:

• The rate for federal funding of public transportation reflects a specific mix of capital investment and preventive maintenance funding as allowable by law.  Under current federal law, an estimated 30,000 jobs are supported per billion dollars of spending.

• The national rate can vary from of 24,000 to 41,000 jobs per billion dollars of spending, depending on the spending mix.  The lower figure holds for spending on capital investments (vehicles and facilities), while the higher figure holds for spending on transit system operations. In reality, it is not logical to spend money on vehicles and not use them, nor is it logical to operate vehicles forever without any purchases of new equipment.  For these reasons, the average rate is a more meaningful number.

• Looking across the entire $47 billion spent on public transportation in the US each year, there is an average rate of approximately 36,000 jobs per billion dollars of public transportation spending (i.e., 36 jobs per million dollars of spending).  This figure is based on the national mix of public transportation spending as of 2007.  It includes a direct effect of spending in transportation related manufacturing, construction and operations as well as orders to suppliers or by re-spending of worker income on consumer purchases.

The rate of jobs supported per billion dollars of spending will continue to change every year, as prices change and technologies evolve. 

Click here to read the entire report in HTML & to download a copy of the report in PDF format.  For those who like to stay without leaving this window, here is a read-only copy of the PDF report.

Federal Transit Administration’s study indicates that the nation’s largest rail systems have a long way to go before they’re ready for prime time

(SOurce: FTA via The Transport Politic)

In December 2007, several senators asked the Federal Transit Administration to study the capital needs of the nation’s largest rail systems, and the government agency has released its report today. To put it bluntly, its conclusions are damning and indicate that the United States must invest far more in maintaining its existing transit infrastructure than it is currently, or suffer the consequences of rotting tracks, vehicles, and stations.

Notably, the report indicates that the seven systems studied (Chicago’s CTA, Boston’s MBTA, New York’s MTA, New Jersey Transit, San Francisco’s BART, Philadelphia’s SEPTA, and Washington’s WMATA) have a total $50 billion backlog of repairs necessary to upgrade equipment to a state of good repair. Based on current funding, that backlog will stretch on for decades if nothing is done. The existing fixed guideway modernization programprovides about $5.4 billion annually for capital upgrades on the nation’s older lines at an 80% federal share.

The report recommends that the federal government increase spending on funding repairs to existing fixed guideway systems, arguing that it remains necessary for these agencies to upgrade their vehicles, tracks, and stations to an adequate quality. Importantly, the study suggests that the current formula for distributing funds – based on an insane 7-tier process – is inappropriate, and that more money be distributed directly to those agencies most in need of improvements.

More importantly, though, the FTA suggests that the Congress authorize an average of $4.2 billion more annually over the next twelve years with a temporary state of good repair fund (alternatives also provided: $8.3 billion annually over six years or $2.5 billion annually over twenty). That would require the government to commit to a total average of $10.1 billion in funds annually for the program. Thereafter, once repairs are complete, the report suggests that the program should be designed to continue funding agencies at a level of $5.9 billion annually.

 

The federal government has already committed nearly $11 billion in stimulus money to help get road, bridge and environmental projects off the ground, administration officials told Congress on Wednesday.

“I believe we have already achieved enormous success,” Transportation Secretary Ray LaHood told the House Transportation Committee, giving a progress report on infrastructure money allotted under the $787 billion economic stimulus bill passed in February.

Lahood, a former Republican congressman from Illinois, told the panel his department had made decisions on $9 billion dollars in projects around the country out of Transportation’s $48 billion share of the stimulus package.  However, he was less specific about the jobs directly resulting from stimulus spending.

It was originally estimated that the $64 billion in the stimulus for infrastructure — for transit, high speed rail, aviation, federal buildings and Army Corps of Engineers projects as well as roads and bridges — would create or sustain 1.8 million jobs.

But so far, reports on new jobs were mostly anecdotal. The Transportation Committee said its survey of state and local transportation officials revealed that work had begun on 263 highway and transit projects in 30 states, putting about 1,250 workers back on the job.

D.J. Stadtler, Jr., chief financial officer for Amtrak, said it expected to produce about 4,600 jobs in the first year of the stimulus with investment of $1.3 billion.

Unemployment in the construction industry soared to nearly 2 million in March, about 21.1 percent compared with 13 percent a year ago.

Rep. John Mica of Florida, top Republican on the committee, questioned the job-creation effectiveness of the program, saying some projects might take three to four years to get off the ground. But he said he would withhold judgment, saying, “We have to give folks a pass at this juncture.”

The Government Accountability Office, in a report prepared for the hearing, also raised questions about the ability of states and Washington to track how the money is being spent. But it gave some states high marks for moving the money quickly.

Intelligent Transportation Systems (ITS) Program Strategic Planning Workshop

 May 6, 2009

The workshop is designed to present the results-to-date of the strategic planning effort and to invite discussion from the public.  Participants will be engaged in question/answer sessions with break-out session discussions.  All feedback will be captured and incorporated into FTA’s ITS strategic planning effort.  Using this input, the FTA’s Office of Mobility Innovation expects to program a robust agenda for research and deployment assistance that reflects the current and future needs of the transit industry. 

If attending, please RSVP to: Suzanne.Sloan@dot.gov.  A similar workshop will take place at the APTA Rail Conference in Chicago, Illinois (June 14-17, 2009).  Location:  Chicago Hilton / TBD

(Source: Dr. Gridlock, Washington Post)

This time, it’s for real. The Washington region can now plan on construction of a new Metrorail line through Tysons Corner and out to Reston. U.S. Transportation Secretary Ray LaHood signed an agreement this morning that means all hurdles have been cleared for the crucial $900 million federal portion of the financing.

A quote that I could attribute to any number of Northern Virginia leaders who are at the U.S. Department of Transportation today: “This is a great day.” The grand signing ceremony in the DOT atrium is more than just a crowded photo op for state and federal officials. It’s a breakthrough for travelers in the Washington region. This will help organize Tysons Corner for the 21st Century. Four stations will be built there. And it will provide a transit line for at least a few more generations of Washington area commuters.

Virginia Gov. Timothy M Kaine said he had never worked on anything so complicated. In his remarks this morning, he noted that the project spanned federal administrations, and praised the work of former transportation secretary Mary Peters during the past year.

Shaking hands after the signing are, board chairman of the Metro Washington Airport Authority H.R. Crawford Honorable, left, and U.S. Transportation Secretary Ray LaHood. Just behind them, left to right, are former Senator John Warner, Senator Mark Warner, Va. Gov. Timothy M. Kaine, and Rep. Frank Wolf. (Gerald Martineau/Post)