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February 5, 2002 - Volume 8, Issue 2
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| President Bush
Releases FY03 Budget |
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President
Bush’s Budget Request for Fiscal Year 2003, which begins
October 1, dramatically adjusts the baseline for TEA-21’s
core highway programs, as federal law requires, reconciling
Highway Trust Fund receipts with anticipated spending levels.
Under this budget, states receive a Federal-aid Highway
Obligation Limit (i.e. funds states can actually commit to
projects in the new fiscal year) of $23.2 billion, a level
that is $4.4 billion or 16 percent below the $27.5 billion
baseline established in TEA-21.
What has fueled so much controversy about this
adjustment is that it is even more dramatic when measured
against the current obligation limit of $31.8 billion.
As such, the proposed obligation limit for the new
fiscal year is about $8.6 billion or 27 percent below this
year’s level. Any
downward changes in the baseline affects the overall
limits imposed on each of the states, leaving states to decide
(as they currently do) how this translates into obligations
among TEA-21’s program categories.
Lost
in the debate is what has happened to highway funding under
TEA-21. First,
the baseline obligation limitations of TEA-21 are more than 50
percent higher than ISTEA levels. TEA-21 also had a feature
known as RABA (i.e. Revenue Aligned Budget Authority) that
automatically adjusts baseline funding to reflect higher or
lower revenues in the Trust Fund. RABA
raised baseline funding over the last three fiscal years by a
total of $9.1 billion. The
Bush Budget corrects for what, in retrospect, were inaccurate
RABA increases, lowering RABA in the new budget by $4.4
billion. States
are still up a net $4.7 billion in positive RABA above
TEA-21’s baseline.
Click
Here to view the FY03 Budget
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| Amtrak
Plans Job Cuts, Possible Shutdown
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Amtrak President George Warrington
announced Friday, 2/1 that the rail carrier will shut down most of the
system on September 30, 2002 unless Congress appropriates at least
$1.2 billion for next year. The remarks came as part of a speech
announcing the layoff of 300 managers and 700 union workers, and a
$285 million package of capital improvement deferrals and spending
cuts.
In 1997, Congress passed the Amtrak
Reform and Accountability Act (P.L.
105-134) which required the carrier to be operationally
self-sufficient by December 2002. Ridership on Amtrak has grown 10-15
percent and revenue has increased by 40 percent in the months following
the September 11 attacks, and many officials have called for a renewed
commitment to passenger rail. However, Amtrak is facing a $120
million revenue deficit due to the recession and a loss of $52
million in financing as a consequence of recent action by the Amtrak
Reform Council, additional security costs since September 11.
Amtrak operates a 22,000-mile
inter-city passenger rail system, serving more than 500 communities in
46 states. For more information on the rail carrier, click
here. To read the press release, click
here.
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| Congress Begins Hearings on
Renewal |
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The Senate Environment and
Public Works Committee, led by Sen. James Jeffords (I-VT)
convened his panel January 24 to startup the official process
of renewing the nation’s surface transportation law known as
TEA-21. At this
opening hearing, the first of eleven planned hearings this
year, senators heard from DOT Secretary Norman Y. Mineta and
representatives of state and local elected officials
(governors, mayors, and county and city officials). The general message was that TEA-21 was working, with both
witnesses and senators expressing concern about the
anticipated highway funding shortfall to be released in the
President’s FY’03 Budget Request.
Another message – delivered by the panel’s Ranking
Minority Member Bob Smith (R-NH) and the Subcommittee’s
Ranking Minority Member James Inhofe (R-OK) – was the
renewed call for further “environmental streamlining” as
part of TEA-21 renewal. Both
rail transit and intercity rail received positive attention in
statements and during questioning of the Burlington and Boise
Mayors.
The House
Transportation and Infrastructure begins its TEA-21 renewal
effort February 7th when the Highways and Transit
Subcommittee, led by Rep. Thomas Petri (R-WI), opens its
hearings with four modal Administrators, led by the FHWA’s
Mary Peters and FTA’s Jenna Dorn.
The House has not yet released its broader hearing
schedule.
Click
here for the Senate EPW Committee website
Click
here for the House Transportation and Infrastructure
Committee website
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| APTA Releases New
Ridership Numbers
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New
numbers released from the American Public Transportation Association
show that transit ridership for the first three quarters of 2001
increased by 2.2% over the same period of the previous year.
Driving, measured as vehicle miles traveled, increased by only 0.5%
during the same period. As predicted by some analysts, both
driving and transit ridership figures were significantly lower during
the month of September, as compared with September of the previous
year. Transit ridership dropped more than 2% (2.05%) and driving
dropped by 1.3%.
Click
here for more details
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| Study Links Pollution
and Asthma |
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A new report from the University of Southern California shows that
children who breathe polluted air while exercising are at higher risk of
developing asthma. Although air pollution and high levels of ozone
have long been known to aggravate symptoms in children who already
have asthma, this is the first clear evidence that they may actually
cause the disease. According to the Washington
Post, asthma is the leading serious chronic youth illness,
affecting more than 9 million children and leading millions of hours
each year in lost school time for children and work time for
parents.
Published in the
British journal The Lancet,
the study found that children in Southern California who played active outdoor sports in
areas with high levels of air pollution were diagnosed with asthma at
a significantly higher rate than similarly active children in
less-polluted areas. For more information on this study, click
here.
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In
Brief... |
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Senate
EPW Transportation Schedule
Feb.
19: 03 budget & the Highway Trust Fund
Mar.
22: "Mobility, Congestion, and
Intermodalism"
Millennial
Housing Commission Report:
Due to the US Senate on or by March 1
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Upcoming
Events |
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Reclaiming the
Dream Transportation Summit
Montgomery, Alabama
February
15-16, 2002
League
of American Bicyclists Bike Summit
Washington, DC
March
6-8, 2002
National Conference on Aging &
Mobility
March
25-27, 2002
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Quote
of the Week |
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"I am confident that, working together, the Department and
Congress can preserve, enhance and establish surface transportation
programs which will provide not only for a safer and more secure
system, but one which is more efficient and productive and enhances
the quality of life. One
answer to the events of September 11 is to strengthen, not diminish,
the right of all Americans to mobility and to grow the economy.
These goals should characterize our work on reauthorizing
TEA-21."
-Transportation
Secretary Norman Mineta, Senate EPW hearing, January 24, 2002
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Transfer
is edited by John
Goldener of the Surface Transportation Policy Project.
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