1. new starts program debate preserving the american dream conference washington, dc october 27,...
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New Starts Program Debate
Preserving the American Dream Conference
Washington, DC
October 27, 2013
Art Guzzetti
Vice President – Policy
American Public Transportation Association
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Who Are We?
• Principal public transportation trade organization, with more than 1,500 transit, business, and other members in the United States, Canada, and worldwide.
• Non-profit: 501(c)6.
• Began in 1882—the era of horse-drawn street railway cars.
• 90% of transit riders travel on APTA member systems.
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Public Transportation in the U.S.
• 36 million boardings every weekday.
• 10.5 billion annual boardings in 2012.
• Approximately 7,700 transit providers in U.S.,
• 52% of trips on bus; 44% taken on Rail.
• 46% of U.S. households have no access.
• $58 billion / yr. industry; directly employs 400,000 and supports 1.9 million jobs.
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Forward-Looking Trends Support Growth:
• Population Growth
• Urbanization
• Social & Demographic
• Economic
• Energy / Environment
• Affordability & Household
• Public Choice
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Public Transportation Ridership Since the Dawn of the Interstate Highway Era
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(17%) (22%) (34%)
Growth Comparison(1995 – 2011)
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Transit Finds Continued Success with Voters
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BY SECTORSECTOR INVESTMENT COSTSENERGY SAVINGS
NET SAVINGS
Buildings $72 $167 $95
Industry $15 $109 $94
Transportation $79 $218 $139
Total $166 $494 $327
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2011 Industry Revenue Sources
$58 Billion Total
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2011 Industry Revenue Sources
Capital Operating
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Funding TotalsFederal Program for Public Transportation
-FY 2010 SAFETEA-LU $10.5 billion
-FY 2011 SAFETEA-LU $10.1 billion
-FY 2012 SAFETEA-LU $10.4 billion
___________________________________________
-FY 2013 MAP-21 $10.6 billion
-FY 2014 MAP-21 $10.7 billion
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…Yet MAP-21 Provides Critical Stability
- But for MAP-21, 14.1 cents of the 18.4 cent federal gas tax would have expired on September 30 (the remaining 4.3 cents is permanent)
- But for MAP-21, the Transportation Trust Fund would have become insolvent in early 2013
- Provides stable (if not growing) funding in the context of tight federal budgets
- MAP-21 is a recommitment to a multi-modal program
- Backdrop of stability while we go back to work on the next bill
- New policy themes offer a new beginning…
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Managerial and Good Government Attributes of the Federal
Transportation Trust Fund• Plan multi-year projects, rather than year-to year
• Multi-Year Financing
• Leverage private and other non-federal money
• Investment programs require the long-view
• Devote management attention to project delivery rather than yearly budget crises
• The certainty of a Trust Fund dollar makes it more dear than a non Trust-Fund dollar
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New Start and Small Start Project Criteria Ratings Under MAP-21
• Mobility Improvement
• Emvironmental Benefits
• Congestion Relief
• Cost Effectiveness
• Economic Development
• Land Use
Constitutes 50% of overall rating
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Local Financial Commitment
• Current Condition (25%)
• Commitment of Funds (25%)
• Reliability / Capacity (50%)
50% of Overall Rating
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Significant Expansion Nationally(# of rail systems)
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