By Ron Thaniel
August 8, 2005

After 12 extensions of the nation’s surface transportation law since October 1, 2003, the House by 412-8 and the Senate by 91-4 approved the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users “SAFETEA-LU” on July 29.

In a statement released immediately after the Senate vote, Conference President Long Beach Mayor Beverly O’Neill said, “On behalf of the nation’s mayors, I applaud Congress for passing the Federal Transportation Bill. The largest infrastructure investment in the nation’s history, this bill is a major victory for mayors across the nation in that it provides more than $286 billion for the expansion of public transportation systems, as well portions of large'scale transportation infrastructure projects.”

“While this bill does not fulfill every transportation need that mayors may have, it will provide for the increased movement of goods and people, will create much-needed jobs and reduce congestion, while maintaining a commitment to safety and the environment,” said O’Neill.

“In addition, we are very pleased that the transportation bill includes language for projects of national and regional significance, which provides the framework and the startup funding for large projects that contribute to the economic vitality of our national and regional economies,” O’Neill added.

Congress also approved July 29 the twelfth extension of TEA-21 to allow an additional two weeks for transmittal of the bill to the President, and allow arrangements for a signing ceremony. O’Neill said, “I urge President Bush to sign this bill as soon as possible to aid our cities that are choking with congested highways, over-crowded buses and rail and structurally deficient or functionally obsolete bridges and tunnels.”

Recognizing that no specific formula in the legislation defines how much federal dollars must go to metro areas, O’Neil said, “It is critical to note, however, cities have historically struggled to receive a fair share of transportation dollars from their state government.”

“Under my leadership, the nation’s mayors are determined to work with governors and state legislators to ensure that cities and suburbs receive an equitable share of funding to make transportation improvements, thus ensuring the continued economic growth of these metro areas,” the mayor said.

Referring the Conference of Mayors annual U.S. Metro Economies Report, O’Neill said, “This nation can’t afford to continue to shortchange transportation infrastructure investment in metro areas. Cities and suburbs produce 85 percent economic output, labor income and jobs, and thus must be the focus of national and state infrastructure investment.”

“This is the way to sustain America’s global competitiveness,” said O’Neill.

The $286.4 billion reauthorization of the federal highway, transit and safety programs will provide $228 billion for highways, $52.6 billion for transit, and $6 billion for safety over six years.

The basic structure of TEA-21 remains intact and the core highway programs fared well. The Surface Transportation Program received a 26 percent increase bringing the total to $32.5 billion over the life of SAFETEA-LU, the Bridge Program is increased by 17 percent to $21.6 billion, and the Congestion Mitigation and Air Quality Program is funded at $8.6 billion, a 7 percent increase. The Highway Safety Improvement Program received a 4 percent increase bringing the total to $5.0 billion.

The Transit Program, a Conference of Mayors priority, received historic funding of $52.6 billion or 18.5 percent of the overall funding with the basic structure of the program unchanged. This is important as almost all transit funds go directly to local governments. The Fixed Guideway Modernization Program will receive $8.4 billion over six years. New Starts under $75 million will receive $800 million, and New Starts of $75 million or more will receive $5.7 billion over six years. The bus and bus facilities program will receive $4.8 billion from 2004 to 2009.

Another Conference of Mayors priority, the new Projects of National and Regional Significance Program, will receive $1.7 billion for 25 projects.

A new Highway Safety Improvement program is created and all public roads are eligible. Another new program of interest to the Conference is the Safe Routes to Schools program, which will grant $612 million for improvements to sidewalks, roads and bikeways in the vicinity of schools and should make some additional federal dollars available to local governments.

The amount of funding for MPO planning is increased from 1 percent to 1.25 percent of the STP funds, which should be of help to metropolitan counties where MPOs are being asked to do more.

Under the agreement worked out, the rate of return to donor states will remain at 90.5 percent for FY2005 and 2006, go to 91.5 percent for FY2007, and ramp up to 92 percent for FY2008 and 2009 while at the same time guaranteeing that every donor state would receive at least 19 percent more in highway funds that they did under TEA-21. See the attached chart to view your state’s funding level.