(Source: American Public Transportation Association press release, July 1, 2011)
WASHINGTON, D.C. — Transportation and Infrastructure Committee Chairman John Mica (R-FL) announced tentative plans to unveil details on his proposal for a six-year surface transportation authorization bill. In recent meetings with transportation industry leaders, Mica announced that he will release bill text following the July 4th holiday, with formal introduction of the legislation to take place the week of July 11, and committee markup the week of July 25.
In a document distributed at the industry group meeting, Mica outlined some of the program and policy components currently included in his draft legislation. Limited to the confines of the House-passed budget resolution developed by Budget Committee Chairman Paul Ryan (R-WI), which requires cuts in transportation programs of over 30 percent compared to current levels, the authorized funding level will be approximately $230 billion over six years. This is the funding level that the committee believes can be sustained by revenues deposited into the Highway Trust Fund (HTF) over that period, assuming no increases in revenue or additional general fund transfers. The bill will also authorize funding to be appropriated from the General Fund of the U.S. Treasury for specific programs, although how this impacts the New Starts program and other General Fund surface transportation programs has not yet been detailed.
It is anticipated that Mica’s bill will focus on program consolidation, streamlining the project delivery process, and greater use of innovative financing and public-private partnerships. The bill is not expected to include his recent proposal to privatize passenger rail service in the Northeast Corridor.
The outlook for introduction remains somewhat unclear, based on signals from the Republican leadership. Several weeks ago House Majority Leader Eric Cantor (R-VA) did not include surface transportation authorization on his list of bills that would be allocated floor time before the August recess. Despite the uncertainty of floor time, Mica has said that he plans to release his bill. Action on authorization will be required before September 30, when the current extension of SAFETEA-LU expires.
APTA is conducting a survey of its members to detail the impacts that 30 percent cuts would have on transit agencies and businesses.
As discussed in the previous legislative alert, Senate Environment and Public Works (EPW) Committee Chairman Barbara Boxer (D-CA) announced that the Democrat and Republican leadership of her committee have reached an agreement in principle on an authorization bill at funding levels of $339.2 billion, which is equal to current levels, adjusted for inflation. It is not clear, however, whether Senators James Inhofe (R-OK) and David Vitter (R-LA) will have the support of Republican leaders in the Senate.
While Boxer acknowledges that a six-year bill is preferable to a two-year bill, she stated recently that a six-year bill may be unrealistic, considering the additional funding needed to supplement the existing trust fund revenues required for a longer term bill. The Senate planned to recess during the week following the July 4th holiday, but Senate Majority Leader Harry Reid (D-NV) announced this morning that the Senate will cancel its recess to work on a deal to raise the debt ceiling. Boxer plans to introduce her bill the week of July 11 and markup shortly thereafter assuming a financing solution. It is unknown whether the cancellation of next week’s recess will change her timeline.
The Senate Finance Committee, chaired by Senator Max Baucus (D-MT), who is also the chairman of the EPW Subcommittee on Transportation and Infrastructure, needs to find approximately $12 billion in offsets to fund a two-year surface transportation bill. Senator Boxer has asked all transportation stakeholders to contact members of the Senate Finance Committee to urge them to support funding for a surface transportation authorization bill of at least two years.
The Senate Committee on Banking, Housing, and Urban Affairs, which has jurisdiction over transit, will release its title on the bill following action by EPW. The Banking Committee is actively working on its portion of the bill and its Subcommittee on Housing, Transportation, and Community Development held a hearing this week to examine public transportation access issues for older adults and people with disabilities.