By Ron Thaniel
September 20, 2010

President Obama released details of his vision for renewing and expanding the nation's transportation infrastructure at a September 6 Labor Day rally in Milwaukee. The Plan is a combination of a long-term vision for the future of the nation's transportation programs and $50 billion in front-loaded new infrastructure investments to jump'start job creation.

"Today, I am announcing a new plan for rebuilding and modernizing America's roads and rails and runways for the long term," President Obama said. "Over the next six years, we are going to rebuild 150,000 miles of our roads - enough to circle the world six times." He said, "We-re going to lay and maintain 4,000 miles of our railways - enough to stretch coast-to-coast. We-re going to restore 150 miles of runways and advance a next generation air-traffic control system to reduce travel time and delays for American travelers."

The Conference of Mayors supports the reforms outlined in the President's proposal that could change the way that transportation projects are funded and prioritized, which included three Conference authorization priorities, a merit-driven national infrastructure bank, projects that link transportation, housing, energy and the environment; and high'speed rail. Speaking to high'speed rail, the President's proposal would integrate "high'speed rail on an equal footing into the surface transportation program to ensure a sustained and effective commitment to a national high'speed rail system over the next generation." The Conference of Mayors has long advocated for a well-funded and dedicated high'speed intercity passenger rail program in the federal surface transportation law and is very supportive of the President's proposal.

The $50 billion in up-front investments would "help jump'start additional job creation, while also laying the foundation for future growth." This initial investment would fund improvements for highways, transit, rail, airports and air traffic control system. In a conference call on September 7 with the White House and U.S. Department of Transportation (DOT), and a follow up DOT meeting at Conference of Mayors headquarters on September 13, the Conference of Mayors was told that no decisions had been made on whether the $50 billion up-front investment would move separately from the reauthorization of the surface transportation law or wait until the surface transportation bill is enacted into law.

The Conference of Mayors was also told by DOT that President Obama is pushing Congress for quick action on the long-delayed reauthorize of the surface transportation law and the up-front package of investments. However DOT staff said it is doubtful that Congress would act on either package before the midterm elections and unlikely action would occur in the lame duck session, which will follow the midterm elections. Of interest, DOT staff floated the idea of using appropriations as a potential vehicle to advance the $50 billion in up-front investments. The President's plan states, "If we are to enjoy the benefits that come from a world-class transportation system, Congress must enact a long-term reauthorization that expands and reforms our infrastructure investments and returns the transportation trust fund to solvency."

Another point of interest in the reauthorization debate is whether or not the Administration is planning to submit its surface transportation bill, as has been the practice of prior Administrations. DOT told Conference staff that no decision has been made as to this point. Of note, as with the stimulus, health care, and other key legislation, the Obama Administration's practice has been to send principles to the Congress as opposed to sending proposed legislation. The Conference of Mayors urged DOT to submit a proposed bill. Otherwise, the Conference of Mayors believes that ultimately it will be very difficult to build support in the authorizing committees for the Administration's livability programs, which the Conference of Mayors strongly supports. The road builders and highway interests have considerable influence in those committees.

Conference staff was told that no decision had been made regarding suballocating a percentage of the up-front investments to cities and their metropolitan areas. Under the American Recovery and Reinvestment Act of 2009 (ARRA), after an unprecedented campaign by the Conference of Mayors, at least 30 percent of state stimulus funds under the surface transportation program were suballocated to cities through Metropolitan Planning Organizations (MPOs). As originally drafted in the House, ARRA had no requirement to suballocate transportation resources to cities and their metropolitan areas - areas with the highest numbers of unemployed and economic centers. The Conference of Mayors urged DOT to include a meaningful suballocation formula, no less than the ARRA formula, in the up-front investment package. Regarding the long-term bill, the Conference is calling for major reforms to reverse decades of underinvestment in cities.

While, other than the $50 billion in up-front investments, no dollar amounts were given for the long-term reauthorization. Of interest, DOT staff floated the idea of a reauthorization in the neighborhood of $600 billion, and to that end, DOT did not discuss funding options for a long-term bill, which, at the end of the day, is the primary issue preventing action on a long-term reauthorization.

"This is a plan that will be fully paid for," President Obama said. "It will not add to the deficit over time - we-re going to work with Congress to see to that."