House Offers Reauthorization Proposal, Puts Conference On Hold Until September
July 23, 2004
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Since the appointment of House conferees on June 3, members
of the House/Senate Conference Committee on the TEA 21 Reauthorization bill
(H.R. 3550) have conducted a series of meetings to reach a compromise on their
respective versions of the bill (see APTA Legislative Alerts for May 21, June
4, June 25, and July 16). Debate has focused on producing a bill that adequately
addresses transit and highway needs, preserves the transit/highway split in
the respective bills, and increases the minimum return of gas tax revenues
to states. Conferees have struggled throughout the process with the Administration's
insistence that funding under the bill be no higher than $256 billion over
six years.
During the last week in June, Senate conferees made a formal offer of $318
billion (as proposed in the Senate-passed bill) to their House counterparts.
The House did not make a formal counter-offer at several meetings scheduled
in early July. On July 20, the Senate offered a new proposal to fund the bill
at a level of $289 billion in guaranteed funding and $301 billion in contract
authority. The Senate offer also listed conditions including a "split
between highways, mass transit and safety programs consistent with House/Senate
bills" and a 94% minimum rate of return on the gas tax for donor states.
At a July 22 meeting of the TEA 21 Reauthorization Conference Committee,
House Ways and Means Committee Chairman Thomas (R-CA) outlined the House leadership's
TEA 21 reauthorization counter-offer - $283.9 billion in guaranteed funding
and $298.9 billion in contract authority. Chairman Thomas and others acknowledged
that the number was not adequate to meet needs, but that the President "will
support and the President will sign it." House conferees did not ask
for a formal vote on the proposal after Senate Conference Committee Chairman
James Inhofe (R-OK) said it would fail if it were put to a vote immediately.
While the two sides appear to be closer to agreement on an overall funding
level, many obstacles remain. House Transportation and Infrastructure Committee
Chairman Don Young (R-AK) noted that the House proposal involved just a number,
and that the conferees needed to work out details through the normal conference
process. The Conference Committee directed staff to work over the August recess
to develop details on a bill at or near the House leadership's funding level.
Privately, some staff and Members are skeptical that a bill will get done
this year.
Short-Term TEA 21 Extension Passed
Late on July 22 Congress passed its fifth short-term TEA 21 extension to
keep federal transit and highway programs running until September 30. As in
previous extensions, the bill continues funding for the programs at FY 2004
levels and makes no programmatic changes.
For more information, please contact Rob Healy in the APTA Government Affairs
Department at (202) 496-4811, or rhealy@apta.com.
House Committee Approves Fy '05 Transportation-Treasury Appropriations
Bill
Also on July 22, the House Appropriations Committee approved the FY 2005
Transportation-Treasury appropriations bill, which would provide $7.249 billion
for the federal transit program, a $16 million cut from FY 2004. The bill
would fund highways at $34.6 billion, the amount authorized by the House-passed
TEA 21 reauthorization bill and an increase of $1 billion over last year's
enacted levels. Amtrak would be funded at $900 million (a cut of $300 million
from last year) which includes $600 million for capital improvements and $60
million for commuter rail service continuity.
Funding for the specific transit programs included in the bill would be as
follows:
|
Program
|
FY 2004 Appropriation (a)
(Millions) |
FY 2005 House Committee
(Millions) |
Change FY 2004 to FY 2005
(Millions) |
Change FY 2004 to FY 2005
(Percent) |
|
Total All Programs |
7,265.88 |
7,249.15 |
(16.73) |
-0.2% |
|
Formula Total |
3,816.35 |
(b) 4,039.00 |
222.65 |
5.8% |
|
UZA Formula |
3,425.61 |
3,633.25 |
207.64 |
6.1% |
|
Rural Formula |
239.19 |
253.35 |
14.16 |
5.9% |
|
Elderly and Disabled |
90.12 |
95.45 |
5.33 |
5.9% |
|
Clean Fuels |
49.71 |
50.00 |
0.30 |
0.6% |
|
Alaska Railroad |
4.82 |
4.83 |
0.00 |
0.1% |
|
Rural Transportation Accessibility |
6.91 |
6.95 |
0.04 |
0.6% |
|
Capital Investment |
3,138.87 |
(c) 2,852.65 |
(286.22) |
-9.1% |
|
New Starts |
1,315.98 |
1,030.83 |
(285.16) |
-21.7% |
|
Fixed-Guideway Modernization |
1,199.39 |
1,214.40 |
15.01 |
1.3% |
|
Bus and Bus Facilities |
623.50 |
607.40 |
(16.10) |
-2.6% |
|
Planning |
72.57 |
73.00 |
0.43 |
0.6% |
|
Research |
52.69 |
53.00 |
0.31 |
0.6% |
|
Job Access and Reverse Commute |
104.38 |
150.00 |
45.62 |
43.7% |
|
University Centers |
5.96 |
6.00 |
0.04 |
0.6% |
|
FTA Operations |
75.05 |
75.50 |
0.45 |
0.6% |
|
(a) Reflects FY 2004 government-wide across-the-board
spending reduction of 0.59%. |
|
(b) Formula program amounts in House Committee
Report add to $4.83 million more than reported formula total. |
|
(c) Capital Investment program amounts
in House Committee Report add to $0.2 less than reported Capital Investment
total. |
While the bill cuts new funding for the New Starts program by $286 million
below last year's level, in fact new start funding would only be reduced by
$128 million because the bill recaptures $158 million in prior year appropriations
from both the New Starts and Bus and Bus Facilities programs that were not
obligated over the past 3 years. New Start earmarks are provided for projects
with full-funding grant agreements (FFGA), the Alaska and Hawaii ferry programs,
and oversight, plus 92 percent of amounts requested for 3 projects that are
close to receiving FFGAs: $92 million for New York City East Side Access,
$36.8 million for Las Vegas Resort Corridor Fixed Guideway project, and $69
million for Phoenix LRT. There are no earmarks for either the Bus and Bus
Facilities programs or the Job Access and Reverse Commute (JARC) program,
though some earmarks are expected to be added during the conference process.
The House Report accompanying the bill reflects ongoing Committee issues
and concerns with the FTA, so much so that funding would be cut for the Administrator's
Office, the Office of Research, Demonstration, and Innovation, and the FTA
Region 4 office. The report also discourages FTA from growing its security
functions at the expense of core safety activities, noting that FTA should
not be the lead federal agency in the transit security arena but rather should
augment and complement Department of Homeland Security activities. An amendment
during markup of the bill to delete this security language in the Committee
Report failed in a straight party line vote. In the new starts area, the Committee
Report continues to focus on oversight issues, and would require the FTA to
submit a monthly new start update to the Appropriations Committees. The bill
would also continue last year's provision prohibiting a grantee from allowing
advertising that promotes the legalization or medical use of certain controlled
substances.
Press reports indicate the bill may be considered on the floor of the House
soon after Congress returns from its August break in early September. The
Senate Appropriations Committee has not acted on its version of the bill.
Regardless of House and Senate action on the FY 2005 Transportation Appropriations
bills, it is likely the bills in both Houses will be combined with other spending
bills in an omnibus bill, which may be considered in late September or early
October, before Congress breaks for the November elections.
For more information, please contact Rob Healy in the APTA Government Affairs
Department at (202) 496-4811, or rhealy@apta.com.
Transit Security Appropriations Update
There has been no further action yet by the Senate on S. 2537, FY05 Homeland
Security Appropriations and Senate Report 108-280. On June 17, the Senate
Committee on Appropriations approved a bill that would provide $32 billion
in discretionary funding for the Department of Homeland Security's budget
for FY 2005. This represents an increase of $2.8 billion above last year's
funding. The legislation provides $3.75 billion for programs to support state
and local first responders, including $150 million for rail and transit security
grants under the Office of State and Local Government Coordination and Preparedness.
The measure also funds the Transportation Security Administration (TSA) at
$5.2 billion, which includes $15 million for rail security. The bill also
provides $23.89 million for high explosives countermeasures for commuter and
passenger rail environments under the DHS science and technology program.
In sum, the bill would provide nearly $190 million in funds for rail and transit
security in FY 2005.
The House has completed action on Homeland Security appropriations. On June
9, the House Committee on Appropriations approved a $32 billion Homeland Security
Appropriations bill for FY 2005, H.R. 4567 and House Report 108-541. The bill
was approved on the House floor on June 18. The legislation provides $4.1 billion
for programs to support state and local first responders, including $1 billion
for the high-density, high-threat urban areas grant program. Within the $1 billion
total, not less than $100 million is dedicated to rail security, including intercity
rail, and transit security systems.
For more information, contact Tom Yedinak in the APTA Government Affairs
Department at (202) 496-4865 or tyedinak@apta.com.
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