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7/18/2002
TEA-21 Users Guide - Chapter 1
The Big Picture
What Was Everyone Fighting About?
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| On June 9, 1998, President Clinton signed into law a
new federal transportation bill called TEA-21, The Transportation
Equity Act for the 21st Century. It is in every sense a direct
successor to the 1991 Intermodal Surface Transportation Efficiency
Act—ISTEA. In spite of TEA-21's complexity and the many
disagreements it provoked during almost two years of debate, this new
law both leaves the groundbreaking reforms of ISTEA intact and
provides new opportunities for innovation. Now that TEA-21 is here,
the transformation of our 1950s-era highway building program into a
flexible transportation program achieved in 1991 can no longer be
called an aberration. ISTEA was created by a Democratic Congress
dominated by Northeasterners and a Republican President, and its
reforms have been continued by a Republican Congress led by
Southerners and a Democratic President. ISTEA, and all it represents,
is here to stay.
This means that ISTEA's weaknesses live on as well. It allowed
people to rethink their choices about spending money, but did not
require them to. TEA-21 is no different, and making it a success on
the ground will take hard work.
The purpose of this guide is to explain in simple terms the major
elements of TEA-21 and how they came to be, highlight the parts of the
new law that create new opportunities for progress, and draw attention
to some new threats.
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Let's Talk About Money
- 1. TEA-21 authorizes $217 billion in funding over six years, 40
percent more than ISTEA.
- Actual funding flowing to the states is unlikely to go up by 40
percent. In most states funding will be higher, but the difference
will be incremental rather that revolutionary.
- The amount of highway money available in future years will
depend on how much money flows into the Highway Trust Fund.
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Category
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Total 6-year funding (billions)
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1. Total Amount Authorized
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$216.3
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Total Amount Authorized, Highways
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$173.1
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Total Amount Authorized, Transit
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$41.0
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2. Total Contract Authority
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$209.3
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Total Contract Authority, Highways
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$171.7
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Total Contract Authority, Transit
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$36.0
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3. Total Amount Guaranteed
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$198.7
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Total Amount Guaranteed, Highways
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$162.7
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Total Amount Guaranteed, Transit
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$36.0
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The Donors Rebel
- The conflict between donor and donee states dominated much of
the TEA-21 debate.
- Most donor states will see significant funding increases, up to
70 percent above ISTEA levels. Other states will see only small
increases.
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New Rules for the Federal Budget
- The budget rules that apply to transportation have changed. Cuts
in transportation spending can no longer be used to boost spending
on other programs.
- Highway spending can exceed the "guaranteed" floor if
revenue flowing to the highway trust fund exceeds expectations, or
if Congress appropriates "non-guaranteed" funds . This
means that state-by-state funding projections are only estimates,
and actual amounts may differ from initial projections.
- The funding guarantee for transit is set at a fixed amount of
$36.0 billion, and will not vary over time as revenues rise and
fall.
- Most transportation programs are covered by the funding
"guarantee," but some are not. Non-guaranteed programs,
like AMTRAK, will still compete for funding in the budget
free-for-all.
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State
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Change in Total Funding, TEA-21 vs. ISTEA (percent
increase)
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State
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Change in Total Funding, TEA-21 vs. ISTEA (percent
increase)
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South Carolina
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79.3
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Oregon
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49.9
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Georgia
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69.7
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Wisconsin
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48.1
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Tennessee
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62.1
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North Dakota
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47.8
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Idaho
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61.9
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Alaska
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47.3
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Nevada
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61.8
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Rhode Island
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47.2
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Virginia
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61.8
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Kansas
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47.1
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Michigan
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61.2
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Pennsylvania
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46.8
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Montana
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61.1
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California
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45.6
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Alabama
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60.6
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New Mexico
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45.3
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Delaware
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60.5
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Nebraska
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42.9
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Texas
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60
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Iowa
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42.8
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Arizona
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59.5
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West Virginia
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41.3
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Wyoming
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58.3
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Minnesota
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40.1
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Utah
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57.8
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Washington
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37.2
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Louisiana
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57.6
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Ohio
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36.9
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Mississippi
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57.6
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New York
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35.4
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Florida
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57.3
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Arkansas
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31.6
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South Dakota
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57
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New Jersey
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30.3
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Oklahoma
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55.6
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Illinois
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29
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North Carolina
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54.7
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Maryland
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28.7
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New Hampshire
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53.1
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Maine
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17.2
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Missouri
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52.9
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Connecticut
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12.8
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Colorado
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52.3
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District of Columbia
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12.4
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Indiana
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52.2
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Hawaii
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7.3
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Vermont
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50.8
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Massachusetts
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-41.2
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The Transit Guarantee
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Transit Funding Category
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Guaranteed
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Non-Guaranteed
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Urbanized Area Formula Grants
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$17.28 billion
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$750 million
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Other Formula Grants
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$1.94 billion
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Bus Programs
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$2.80 billion
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$500 million
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New Starts
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$6.09 billion
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$2.09 billion
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Rail Modernization
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$6.09 billion
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$500 million
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Planning
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$364 million
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$170 million
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Research
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$281 million
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$162 million
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Job Access
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$500 million
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$250 million
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Clean Fuel Grants
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$500 million
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$500 million
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University Transportation Centers
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$36 million
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Administration
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$364 million
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$78 million
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TOTAL
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$36.00 billion
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$5.00 billion
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TEA-21 Reference:
Section
1105, Title
VIII.
The Surface Transportation Policy Project is a nationwide network of more than 800
organizations, including planners, community development organizations, and advocacy groups,
devoted to improving the nation’s transportation system.
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STPP
