Growing Transit Investment Needs Not Addressed By 'SAFETEA' Proposal

Contact: Donna Aggazio
(202) 496-4884
daggazio@apta.com

WASHINGTON, D.C., May 14, 2003 – The public transportation industry is disappointed that the Bush Administration’s "SAFETEA" reauthorization proposal released today does not adequately address substantial and growing infrastructure investment needs for both transit and highways. Investing in public transportation is a vital element of our economy, generating $6 or more in economic benefit for every dollar invested.

The proposal is a move in the wrong direction for transportation investment policy. While "SAFETEA" does continue some part of the highly successful guaranteed funding provisions for public transportation, the General Fund component of the federal transit program would be excluded from the funding guarantees. This would mean a return to the past, when funds authorized for public transportation investment frequently were not appropriated, making receipt of funds unpredictable and driving away private sector investments.

Moreover, under "SAFETEA," guaranteed highway funding is slated to grow 24 percent from 2003 to 2009, while guaranteed public transit funding would actually be 8 percent less in 2009 than in 2003, further aggravating the imbalance of federal investment in public transit and undoing the agreement Congress reached in TEA 21 with 80 percent of the guaranteed funds going to highways and 20 percent going to public transit.

The proposal would also increase the state and local share for public transportation new starts projects to 50 percent, while retaining the 20 percent share for highway projects. Such a move would require cash-strapped states and local governments to come up with additional funds to continue their transit investment programs. Keeping the match the same for both highways and transit provides for a level playing field and promotes more equitable local decision making when planning new transportation projects.

The levels of funding proposed for public transportation will hinder national economic growth. Every $1 billion invested from federal funds in the nation’s transportation infrastructure generates 47,500 jobs. This proposal also runs counter to public opinion: a recent poll by Wirthlin Worldwide showed that 72 percent of Americans support increased investment in public transportation.

We look forward to working with Congress and the Administration to increase support for both public transportation and highways by investing the necessary funds in both the FY 2004 budget and in the reauthorization of the Transportation Equity Act for the 21st Century, which expires in less than five months in September 2003.

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A copy of the Administration’s proposal is available at http://www.fhwa.dot.gov/reauthorization/safetea.htm.

APTA is a nonprofit international association of over 1,500 member organizations including public transportation systems; planning, design, construction and finance firms; product and service providers; academic institutions; and state associations and departments of transportation. APTA members serve the public interest by providing safe, efficient and economical public transportation services and products. APTA members serve more than 90 percent of persons using public transportation in the United States and Canada.