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Federal Funding

Nationally, all eyes are on Capitol Hill, as we await the installation of the new members of the U.S. House of Representatives and U.S. Senate.

In 2003 they will have the daunting task of shaping legislation to re-authorize Federal funding levels for the nation’s surface (i.e. non-aviation) transportation system. From passenger rail to roads, bridges and public transit, the Congress must decide what America will invest in how we travel and move goods from coast to coast. CTA, Metra and Pace depend upon Federal funding to provide 80% of the capital dollars to make major purchases, such as new rail cars and buses, and make substantial capital investments in our public transit system.

The current Federal funding legislation, the “Transportation Equity Act for the Twenty-First Century” (known as “TEA-21”), will expire at the end of the current Federal fiscal year (September 30, 2003). By then, Congress must have a “TEA-3” bill in place to keep money flowing to states, local governments, and public transportation agencies for their major capital investments. Over the six-year life of TEA-21 (1998-2003), Congress authorized the expenditure of more than $200 Billion on surface transportation, including as much as $42 billion for public transit improvements nationally.

In the upcoming re-authorization debate, advocates of public transit have asked for major increases in Federal investment, with the American Public Transit Association asserting that transit systems needs an annual investment of $43 billion! That’s more than six times the amount of funding that Congress approved during the heady days of a booming national economy.

Clearly the decisions about resource allocations will be much tougher this time around.

Recently many states and localities, often in alliance with anti-sprawl, pro-transit, and environmental groups, have attempted to pass referenda to increase local (non-Federal) funding for public transportation. For more on this national trend, which has had VERY mixes results, go to www.transact.org, the website of the national non-profit public interest organization, the Surface Transportation Policy Project.

The Neighborhood Capital Budget Group, through its “Campaign for Better Transit,” will be keeping a close eye on the debate over “TEA-3.” For a preliminary guide to re-authorization, go to www.bettertransit.com, and check out “The Weary Traveler’s Guide to the Universe. . . of Federal Transit Funding.” Send your comments to jdamal@bettertransit.com, and tell us what YOU would like to know about the upcoming Congressional battle, and how it will affect your daily commute

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