Legislative Update

FTA Issues Apportionments for FY 2007 Continuing Appropriations Resolution:

$8.975 Billion for Federal Transit Programs

Transit Security Legislation Advances in the House and Senate

March 26, 2007

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The Federal Transit Administration (FTA) has issued the Fiscal Year (FY) 2007 Apportionments and Allocations Notice. The notice details how the agency will distribute the $8.975 billion provided for federal transit programs under the FY 2007 Continuing Appropriations Resolution (P.L. 110-5, H. J. Res 20) which the president signed on February 15. The resolution, a spending bill that completes all unfinished FY 2007 appropriations bills including the FY 2007 Transportation Appropriations bill, was approved by the U.S. Senate on February 14, completing Congressional action on the bill. The inclusion of $8.975 billion for transit programs, the same level authorized by the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU, P.L. 109-59), is a major victory for transit supporters. Most domestic federal programs did not receive an increase and instead had funding frozen at FY 2006 levels, but transit and highway programs were spared from the freeze.

Important Funding Decisions Made by FTA in the Apportionment Notice

FTA was given the authority under the continuing resolution to allocate and distribute all FY 2007 New Starts/Small Starts funds, and the agency received similar discretion to allocate just less than half of the $901 million of Bus and Bus Facilities and Clean Fuels grant funds after SAFETEA-LU earmarks are honored. FTA was granted this authority because the FY 2007 continuing resolution contained no earmarks. The new Democratic leadership of the 110th Congress has agreed to establish new restrictions on earmark requests that are included in FY 2008 bills.

For the New Starts/Small Starts program, FTA will use $1.284 billion of the $1.566 billion available to honor existing Full Funding Grant Agreements and to fund in the 2007 President's Budget and the 2007 Annual Report on New Starts. After funding those projects and deducting oversight expenses, FTA will have over $265 million in additional New Starts/Small Starts funds available for allocation. The agency did not indicate in the Apportionments Notice how those funds will be distributed for New Starts/Small Starts projects. FTA did give details regarding a selection process for $12 million in Alternatives Analysis funds that were not earmarked by SAFETEA-LU.

ACTION CALL! APTA members should follow up on meetings with their Senators and Representatives during the Annual Legislative Conference: Please thank them for fully funding transit in the FY 2007 Continuing Appropriations Resolution at the SAFETEA-LU authorized level of $8.975 billion. Ask them to support the $9.731 billion level authorized for transit in both the FY 2008 Budget Resolution and the FY 2008 Transportation Appropriations bill. Ask them to support the additional funding for transit security in the FY 2007 emergency supplemental bill for Iraq and in bills moving through the House and Senate.

 

Program	FY 2007 Continuing Appropriations Resolution	FY 2008 Authori- zation	FY 2008 Adminis- tration Budget Request	FY 2008 Budget Request Compared to:
				FY 2007 Continuing Appropriations Resolution	FY 2008 Authori-zation
	(Millions)	(Millions)	(Millions)	(Millions)	(Millions)
Total All Programs	8,974.8	9,730.9	9,422.0	447.2	-308.9
Formula Programs Total	7,262.8	7,872.9	7,871.9	609.1	-1.0
§ 5307 Urbanized Area	3,947.1	4,280.3	4,279.8	332.7	-0.5
§ 5311 Rural Area	467.1	506.6	506.5	39.4	-0.1
§ 5310 Elderly and Disabled	117.0	127.0	127.0	10.0	0.0
§ 5317 New Freedom	81.0	87.5	87.5	6.5	0.0
§ 5308 Clean Fuels Formula	45.0	49.0	49.0	4.0	0.0
§ 3038 Over-the-Road Bus	7.6	8.3	8.3	0.7	0.0
§ 5309 Fixed-Guideway Modernization	1,448.0	1,570.0	1,569.8	121.8	-0.2
§ 5309 Bus and Bus Facilities	855.5	927.8	927.6	72.1	-0.2
§ 5305 Planning	99.0	107.0	107.0	8.0	0.0
§ 5316 Job Access and Reverse Commute	144.0	156.0	156.0	12.0	0.0
§ 5320 Alternative Transportation in Parks	23.0	25.0	25.0	2.0	0.0
§ 5335 National Transit Database	3.5	3.5	3.5	0.0	0.0
§ 5339 Alternatives Analysis	25.0	25.0	25.0	0.0	0.0
Capital Investment Program Total	1,566.0	1,700.0	1,399.8	-166.2	-300.2
§ 5309 New Starts/Small Starts	1,566.0	1,700.0	1,399.8	-166.2	-300.2
Research and University Centers	61.0	65.5	61.0	0.0	-4.5
FTA Operations	85.0	92.5	89.3	4.3	-3.2

 

Competitive Processes for Bus and Bus Facility Grants

For the Bus and Bus Facilities program, FTA will honor SAFETEA-LU earmarks and then allocate $413 million in remaining funds through a competitive, discretionary process. In the Apportionments Notice, the agency stated its intention to divide funds between two categories. The first category will be grants to metropolitan areas participating in U.S. Department of Transportation's (DOT) Urban Partners program, a product of the Department's Congestion Initiative which encourages participating metropolitan areas to establish congestion pricing plans. The second category will be traditional Bus and Bus Facility grants that address "priority areas" including:

• fleet replacement needs that cannot be met with formula funds
• fleet expansion that allows significant service increase and/or improvements and/or operating efficiencies
• facility construction or renovation to support increased service or introduction of clean fuels
• strategic investments in rural areas where formula funding is inadequate
• purchase of clean fuel vehicles
• intermodal terminal projects that include intercity bus providers
• Gulf Coast Recovery - capital to support bus and bus facilities replacement and expansion related to the impacts of the 2005 Hurricanes

FTA has not indicated how the $413 million of available Bus and Bus Facility program funds will be allocated between the two categories. Details regarding how to apply for each category of funds and detail related to other programs can be found in the Apportionments Notice and separate Notices of Funding Availability.

The 2007 Apportionment Notice and the Notices of Funding Availability are available here:
http://www.fta.dot.gov/funding/apportionments/grants_financing_105.html

For more information on the FY 2007 Continuing Appropriations Resolution or the FY 2007 Apportionment Notice, please contact Rob Healy of APTA's Government Affairs Department at (202) 496-4811 or email rhealy@apta.com.

FY 2008 Budget Resolution Debate Begins; FY 2008 Appropriations Cycle Begins in April

This week the Senate began debating the FY 2008 Budget Resolution. The House Budget Committee also marked up its version of the resolution on March 22. Both resolutions assume funding for transit and highway programs at the level authorized by SAFETEA-LU. The House and Senate draft resolutions also assume increased funding for transit security. The passage of a budget resolution in the House and Senate, while not mandatory, is the starting point for the FY 2008 Appropriations cycle. After a budget resolution is agreed upon between the House and Senate, or after April 15 if no resolution has passed, the House and Senate Appropriations Committees can begin approving FY 2008 Appropriations bills.

The Bush Administration released its FY 2008 budget proposal last month which recommends a funding level of $9.422 billion for the federal transit program. The administration's proposal represents an increase of $447.2 million or 5.0 percent over the FY 2007 appropriation level contained in the FY 2007 Continuing Appropriations Resolution, but it would be $309 million less than the level authorized and guaranteed for FY 2008 by SAFETEA-LU.

For more information on the FY 2008 Budget Resolution, the FY 2008 Administration Budget Proposal or the FY 2008 Appropriations process, please contact Rob Healy of APTA's Government Affairs Department at (202) 496-4811 or email rhealy@apta.com.

Transit Security Legislation Advances in the House and Senate

Both the House and Senate are currently debating new, emergency catch-up funding for transit security, and earlier this month both chambers advanced legislation to establish larger transit security programs that authorize increases in funding. The Senate Appropriations Committee on March 22 marked up an FY 2007 emergency supplemental spending bill to address Iraq costs and other purposes that includes $625 million for passenger rail, freight rail and transit security grants. On March 23, the House approved its version of supplemental appropriations bill which includes $225 million for transit security.

On a separate front, Senate Majority Leader Harry Reid successfully added transit security provisions to a bill that implements 9/11 Commission recommendations (S.4). The full bill, a compilation of homeland security measures, was passed by the Senate in a 60-38 vote on March 13. The transit provisions added are based on previous legislation developed by the Senate Banking, Housing and Urban Affairs Committee. The legislation authorizes $3.5 billion over a three-year period for transit security grants and would require the Department of Homeland Security to award grants directly to transit agencies. The final Senate bill also includes a rail title drafted by the Senate Commerce Committee which provides $1.8 billion for various rail security programs, including funds to improve the safety and security of tunnels on the Northeast Corridor. Earlier this year, the House passed a bill addressing 9/11 Commission recommendations that did not include transit or rail security provisions. With transit security measures included in the Senate-passed 9/11 Commission recommendation bill, a final version of authorization legislation for transit security must now be negotiated in a House-Senate conference.

In the House of Representatives, two committees have been developing transit security authorization legislation. The House Homeland Security Committee on March 13 approved a transit security bill (H.R. 1401) that authorizes $3.36 billion over a four-year period. In addition, two transit security bills are under development in the House Transportation and Infrastructure Committee. Chairman James Oberstar has introduced a bill (H.R. 1269) that would authorize $3.36 billion over four years for transit security, but U.S. DOT would distribute and audit grants. Representative John L. Mica, the committee's ranking Republican member, has introduced a bill (H.R. 1493) that would authorize "such sums as may be necessary" to address transit security needs. Earlier this month, APTA President Bill Millar testified separately to both House committees on the security needs of the transit industry.

For more information on transit security funding, please contact Tom Yedinak of APTA's Government Affairs Department at (202) 496-4865 or email tyedinak@apta.com.

 

 

 

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