By Ron Thaniel
November 11, 2008

Testifying before the U.S. House of Representatives Committee on Transportation and Infrastructure on October 29, U.S. Conference of Mayors Past President Louisville Mayor Jerry E. Abramson delivered a strong and compelling argument in support of the Conference’s MainStreet Stimulus.

Mentioning his meeting earlier in the week with House Majority Leader Steny Hoyer (MD), Abramson said, “Everyone in this room understands the economic crisis our country is experiencing. Main Street America is in economic trouble.”

“To create Main Street jobs, support the metro economic engines, and ensure that traffic congested areas actually receive funding and critical deferred maintenance is addressed, additional highway stimulus funds must not be distributed based on current state-based status-quo system,” Abramson said.

He voiced strong support for $32 billion in an emergency stimulus for critical ready-to-go bridge, bus and rail, and road projects in metro areas and other parts of our states through the Surface Transportation Program (STP); however, Abramson warned that the Conference of Mayors is “strongly opposed to dropping local communities out of the STP program, as the House stimulus bill proposed.”

“Under the current plan, local officials through their metropolitan planning organizations (MPOs) would not be involved in the expenditure of funds for “ready-to-go” projects – this makes no sense,” said Abramson.

Using the STP structure means that, in addition to the guaranteed share of STP funds reserved for the states, local officials and local areas within the states would receive a balance of the funds based on population, as federal law has provided since 1991. As highlighted in the Distribution of Stimulus Highway Program Funds chart, local area funds were eliminated in the original Stimulus Bill proposal (H.R. 7110) that passed the House on September 26. If unchanged, local officials through their MPOs would not receive STP formula funds directly for “ready-to-go” projects. Under the USCM proposal, which follows current law, metro areas of 200,000 and above would receive $4.32 billion. Small urban, 5,000-200,000, and non-urban areas, under 5,000, would also receive their share of transportation funds. In total, the Conference’s proposal would ensure that local communities receive 62.5 percent of the emergency stimulus highway funds for ready-to-go transportation projects – compared to zero in H.R. 7110. (see chart at right)

“Cities are ready to go, and we can create jobs now! Not government jobs, but private sector jobs, especially for small businesses, beginning shortly after enactment of this plan,” Abramson said.

The hearing focused on infrastructure across the Committee’s jurisdiction, including highways, bridges, public transportation, rail, aviation, ports, waterways, wastewater treatment facilities, and Federal buildings.

Joining Abramson on the first panel were New Jersey Governor Jon S. Corzine, San Diego Association of Governments Executive Director Gary L. Gallegos, Former Governor of Michigan National Association of Manufactures President and CEO John Engler, and Economic Policy Institute Research and Policy Director Dr. John Irons.