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October 24, 2005
The Honorable Thad Cochran
Chairman
Senate Committee on Appropriations
S-128 Capitol Building
Washington, DC 20510-6025
Dear Senator Cochran:
I write on behalf of the American Public Transportation Association (APTA) and its more than 1,600 member organizations regarding the federal response to Hurricane Katrina. Unconfirmed reports have estimated that $1.5 billion or more will be required to repair public transportation infrastructure and reestablish transit services in the areas of Louisiana, Mississippi and Alabama affected by the Hurricane. As the federal government continues to develop its response plan in the context of emergency supplemental appropriations bills, APTA believes that both transit operating needs and long-term capital assistance should be included. The Federal Emergency Management Agency (FEMA) is responsible for coordinating the federal and private response efforts. It has the authority under the Stafford Act to supply emergency transportation services and to fund the basic repair of transit infrastructure, but Congress may also provide funding to specific agencies, including the Federal Transit Administration (FTA) to assist disaster relief efforts.
FEMA and the Department of Transportation (DOT) have begun to address the immediate transportation needs of the Gulf Coast, including transit needs. FEMA has released $48.4 million this month to reestablish bus service in New Orleans and along the Mississippi Coast and to expand service in Baton Rouge, which has experienced significant population growth in the wake of Hurricane Katrina. These efforts are important early steps, but more needs to be done to redevelop effective public transportation systems in the region. The New Orleans Regional Transit Authority's (RTA) preliminary analysis indicates that the system will lose more than $94 million in anticipated revenues in the coming year, and its capital replacement costs could be in excess of $750 million. Public transportation providers throughout the Gulf Coast region will need both operating assistance and significant funding to repair and replace rolling stock and other infrastructure.
The federal response to the terrorist attacks of September 11, 2001 created a new model of partnership between FEMA and DOT in which the expertise of FTA was utilized to redevelop the transit infrastructure of lower Manhattan. Several elements of that partnership could be revitalized in the effort to reestablish public transportation services in the Gulf Coast region. In addition, greater operating assistance for transit providers is needed given the enormous impact of the hurricane on the tax bases of the affected communities. The increased cost of diesel fuel for transit operations -- estimated at $750 million nationally -- will exacerbate the situation for transit systems in the Gulf Coast region and further increase operating costs now funded by state and local government.
Accordingly, we recommend that emergency legislation:
Create "Investment Grants" to be distributed by FTA for capital and operating expenses using FEMA emergency funds.
Permit DOT to waive state and local matching and other requirements for DOT assistance to expedite the delivery of resources.
Grant DOT and FEMA the authority to enhance, as well as rebuild, the public transportation systems in affected areas.
The reestablishment of transit services in the Gulf Coast region is a critical part of the ongoing efforts to restore the vitality of the affected cities. In New Orleans, Biloxi and elsewhere, redevelopment efforts will likely result in new and potentially higher density housing and land-use patterns. To promote livability, commerce and tourism in these redeveloping cities and to efficiently serve new housing and land-use patterns, the enhancement of public transportation infrastructure and service will be required.
We thank you for your consideration of APTA's views. Should you have questions about these issues please have your staff contact Rob Healy of APTA's Government Affairs Department at (202) 496-4811 or email rhealy@apta.com.
Sincerely yours,
William
W. Millar
President
WWM/tjj
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