[Senate Hearing 110-]
[From the U.S. Government Publishing Office]
TRANSPORTATION AND HOUSING AND URBAN DEVELOPMENT, AND RELATED AGENCIES
APPROPRIATIONS FOR FISCAL YEAR 2009
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U.S. Senate,
Subcommittee of the Committee on Appropriations,
Washington, DC.
NONDEPARTMENTAL WITNESSES
[Clerk's note.--The following testimonies were received by
the Subcommittee on Transportation and Housing and Urban
Development, and Related Agencies for inclusion in the record.
The submitted materials relate to the fiscal year 2009 budget
request.
The subcommittee requested that public witnesses provide
written testimony because, given the Senate schedule and the
number of subcommittee hearings with Department witnesses,
there was not enough time to schedule hearings for
nondepartmental witnesses.]
Prepared Statement of the City of San Marcos, Texas
san marcos municipal airport
Madam Chairman and members of the subcommittee: On behalf of the
city of San Marcos, Texas, I am pleased to submit this statement in
support of our request for project funding for fiscal year 2009.
The city of San Marcos requests Federal funding for the San Marcos
Municipal Airport to accomplish improvements that are in the public
interest. The improvements are described in the three specific project
components listed below:
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Amount
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Northside Infrastructure Development.................... $2,021,250
New Terminal Building................................... 4,725,000
Fixed Base Operator (FBO) Facility...................... 1,575,000
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Total Request..................................... 8,321,250
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The San Marcos Municipal Airport is a public general aviation
classified as a reliever airport within the National Plan of Integrated
Airport Systems. The airport is owned and operated by the city of San
Marcos, Texas. It is located just east of Interstate Highway 35 on
Texas Highway 21 approximately 30 miles south of Austin and 45 miles
north of San Antonio in one of the fastest growing corridors in Texas.
The airport is part of a closed military base; the remainder of the
former Air Force Base is occupied by the United States Department of
Labor's Gary Job Corps Center. When the base was closed and divided in
1966, the Job Corps retained the portion of the property with the
buildings and other amenities, while the city of San Marcos was given
the aeronautical facilities consisting of runways, taxiways, and the
parking apron.
This arrangement has resulted in a ``bare bones'' airfield that
lacks the support structure to sustain an economically viable modern
airport. We have adequate aeronautical facilities and real estate, but
few other vital facilities. In addition, current legislation provides
for airport capital improvement funding assistance through the Federal
Aviation Administration for aviation infrastructure, but not for the
type of improvements that this airport needs.
The city of San Marcos requests assistance to transform the airport
into a modern, self-sustaining enterprise benefiting not only the local
community, but the region as well. After analysis and master planning,
we have determined that the three project components herein described
will produce the ``biggest bang for the buck.'' These components
represent our highest priorities and most immediate needs, and they
will be a highly visible indicator that the San Marcos Municipal
Airport is on the move. We are firmly convinced that these improvements
will initiate further development and attract private investment that
will far surpass the amount that we are seeking in Federal support.
The following program descriptions outline our three-part request:
North Side Infrastructure Development--$2,021,250
The layout of the former Gary Air Force Base is such that all the
buildings and developed area of the base are to the south of the
airfield. When the base was divided between the Gary Job Corps Center
and the San Marcos Municipal airport, the airport was given only a thin
sliver of land on the south side to provide access and support the
airfield. There is not enough room for all the support facilities such
as hangars, maintenance shops, and terminal buildings that an active
airport requires.
However, on the north side of the airfield is real estate that has
never been developed. One prime piece of this area consists of
approximately 40 acres of very desirable airport land that fronts Texas
Highway 21 and borders an existing taxiway that will become the main
taxiway for the entire north side development. Except for the absence
of infrastructure, it is the prime location on the airport. The area
requires access roads, including a main airport entrance, drainage
improvements, aircraft ramps and aprons, existing taxiway pavement
reconstruction, and utilities. It also needs a seed project to
stimulate private investors to move into the area.
Our plan proposes to construct the infrastructure and then to build
approximately 50 nested T-hangars in two or three city-owned buildings.
Our planning estimate for the cost to implement this project is
$2,021,250. San Marcos Airport received $1,575,000 in appropriations
funding for fiscal year 2008, leaving $2,021,250 needed to complete the
infrastructure project. We are also convinced that once this north side
development ball starts to roll, the future of the new San Marcos
Municipal Airport will shift from the current limited and constrained
south side to the several hundred acres of prime undeveloped land
available on the north side.
New Terminal Building--$4,725,000
The commercial, economic, and public service hub of a modern
airport is the public terminal building. The terminal building provides
public amenities such as a waiting room or lounge, airport
administration offices and public meeting rooms, restrooms, flight
planning facilities and communications links to obtain flight planning
information, commercial lease space for on-site businesses such as
restaurants, retail shops, rental car facilities, and other aviation-
related commercial activities.
An airport's facilities will be the first thing a business traveler
will see, and it is those facilities which represent the city of San
Marcos. These facilities are sorely lacking in our present airport
configuration, and the existing terminal building is undersized to meet
existing demand, much less provide room for growth. The planned
terminal building planning concept is for a modern, state-of-the-art
building of approximately 10,000 square feet first floor and total cost
estimated at $4,725,000. This terminal building will be the seed
project to stimulate private investors and other commercial and
corporate business to move into the area. Lease payments and other
airport fees would offset this investment; and the investment is
calculated to be a profitable enterprise for the airport in the long
term.
Fixed Base Operator (FBO) Facility--$1,575,000
For general aviation operations, airport activity centers on the
Fixed Base Operator (FBO). This facility is where the transient and
airport-based pilots and aircraft operators buy fuel and obtain direct
support for their flights. It is also a place where transient and
airport-based pilots can arrange to have their aircraft serviced,
repaired, and hangared overnight or longer when required.
It is again opportune that the San Marcos Municipal Airport has an
established FBO that is capable of accomplishing these vital services
if a facility were available for them to lease. We propose that a
modern, state-of-the-art FBO facility be constructed to meet the
airport's present and future commercial requirements. The approximately
30,000 square foot structure would be primarily hangar space with an
attached business, repair shop, and office area. Cost is estimated at
$1,575,000. Lease payments and other airport fees would offset this
investment; and the investment is calculated to be a profitable
enterprise for the airport in the long term.
The 1,356 acre San Marcos Municipal Airport is a potential economic
dynamo for this region of Central Texas. The three airport improvement
components that we are proposing will result in an increase in activity
and private investment. This is a good investment of public revenue
that will result in more high-paying aviation jobs, an increased tax
base, and more direct revenues in the form of airport fees and rents.
Our airport will also better serve the aviation needs of the region and
spur further growth, development, and prosperity for our citizens.
These projects are grounded in sound public policy principles. They
will result in excellent value for the American taxpayer and for the
traveling public that will utilize the facilities.
Cost-Sharing
The city of San Marcos will contribute real estate on the north
side of the airport for the three components of the airport project.
The value of the local municipal government in-kind share is estimated
at $832,125. Additionally, our development code will require new
developers to share the costs for infrastructure extensions (water
lines, waste water lines, roadways, etc.) We estimate this cost share
value to be approximately $1,500,000.
The city of San Marcos sincerely appreciates your consideration of
these requests for funding in the fiscal year 2009 cycle and
respectfully requests your support.
loop 82 railroad overpass project
On behalf of the city of San Marcos, Texas, I am pleased to submit
this statement in support of our request for project funding for fiscal
year 2009.
The city of San Marcos requests an appropriation of $10 million
from the Transportation, HUD & Related Agencies Subcommittee to
complete the funding for a vitally needed $25 million railroad overpass
on Aquarena Springs Drive (Loop 82), a major State highway in San
Marcos, Texas.
Background
San Marcos has 50,371 residents, plus an estimated 13,000 commuting
students who are part of our 28,500 student campus at Texas State
University, all within the city limits. The city is located in the
heart of the Interstate 35 corridor halfway between Austin and San
Antonio, Texas.
Aquarena Springs Drive (Loop 82) is a major entryway into San
Marcos and the primary access point for Texas State University from
Interstate 35. In addition to traffic generated by commuters and
residents, Aquarena Springs Drive carries heavy traffic from numerous
university housing and large apartment complexes located along this
busy thoroughfare. Aquarena Springs Drive averages an estimated 32,000
vehicles per day.
San Marcos has an elevated railroad crossing on only one State
highway and 20 at-grade railroad crossings throughout the city. Union
Pacific Railroad tracks completely bisect San Marcos, with most
crossings located within 1 mile of downtown, including the Aquarena
Springs Drive crossing. An average of 47 trains travel through San
Marcos every 24 hours. The existing at-grade crossing on Aquarena
Springs Drive results in increased risk for automobile/railroad
conflicts and significant trip delay.
In February 2005, a freight train transporting hazardous materials
derailed in the center of San Marcos near a heavily populated
neighborhood about 1.6 miles from Aquarena Springs Drive. While no one
was injured and no hazardous materials were spilled, the incident
raised the level of concern about the lack of safe passage at railroad
crossings along major thoroughfares in San Marcos.
Cost Sharing
The Loop 82 Aquarena Springs Drive overpass project has been
approved by the Texas Department of Transportation (TXDOT) and Union
Pacific Railroad, and preliminary design has begun. Approximately $15
million in railroad safety funds have been allocated to this $25
million project. As of October 2007, design was scheduled to be
completed by April 2011, with construction to begin in August 2011.
The city of San Marcos has received voter approval to allocate
$932,800 in tax-supported general obligation bonds as our local share
to pay for the realignment of local roadways associated with the
railroad overpass. As noted, the Texas Department of Transportation has
set aside $15 million in railroad safety funds for the bridge. However,
the recent financial shortfalls at TXDOT have caused the State agency
to halt all work on this important project.
Community Safety Issue
The $10 million shortfall has effectively stopped a project that
addresses a critical issue of health, safety and welfare in our
community. Loop 82 was identified by the Texas Department of
Transportation as the only other State highway on which a railroad
overpass can be constructed in San Marcos. In December 2006, the city
of San Marcos and TXDOT opened the first railroad overpass on Wonder
World Drive (FM 3407) on the south end of San Marcos, a project that
took us more than 25 years to achieve.
Design, right-of-way acquisition and construction of a 4-lane
railroad overpass on Aquarena Springs Drive (Loop 82) with associated
frontage roads will improve railroad safety, traffic safety, mobility
and air quality in San Marcos. We believe that it is a matter of safety
and community health and welfare to build this overpass and create an
unobstructed access to Texas State University and downtown San Marcos.
The city of San Marcos sincerely appreciates your consideration of
this request for funding in the fiscal year 2009 cycle and respectfully
requests your support.
______
Prepared Statement of the Institute of Makers of Explosives
interest of the ime
The IME is the safety and security association of the commercial
explosives industry. Commercial explosives are transported and used in
every State. Additionally, our products are distributed worldwide,
while some explosives, like TNT, must be imported because they are not
manufactured in the United States. The ability to transport and
distribute these products safely and securely is critical to this
industry.
background
The production and distribution of hazardous materials is a
trillion-dollar industry that employs millions of Americans. While
these materials contribute to America's quality of life, unless handled
properly, personal injury or death, property damage, and environmental
consequences can result. The threat of intentional misuse of these
materials also factors into public concern. To protect against these
outcomes, the Secretary of Transportation (Secretary) is charged under
the Hazardous Materials Transportation Act (HMTA) to ``provide adequate
protection against the risks to life and property inherent in the
transportation of hazardous materials in commerce by improving''
regulation and enforcement.\1\ The Secretary has delegated the HMTA
authorities to various modal administrations, with primary regulatory
authority resting in the Pipeline & Hazardous Materials Safety
Administration's (PHMSA) Office of Hazardous Materials Safety (OHMS).
How OHMS has handled and proposes to handle these responsibilities is
the focus of this statement.
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\1\ 49 U.S.C. chapter 51.
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fiscal year 2009 budget request
Staff and Program Resources
We understand that this is an unusually tight budget year. While
OHMS is level funded, it is technically adsorbing a $1.3 million cut
from the adjusted fiscal year 2008 base. It is able to sustain those
cuts because it has automated some activities, streamlined some
regulatory processes, leveraged other agency resources, and made
efforts to fully staff up to allowable FTE. At the same time, however,
PHMSA leadership has charted an aggressive program of work for OHMS
that is risk-based, compliance-oriented, and stakeholder-focused. We
believe OHMS is operating at capacity. Any additional cuts would
compromise the agency's role to ensure the reliability of commercial
hazardous materials transportation.
We are concerned that ``over one-third of [OHMS] employees will be
eligible to retire within 5 years.'' \2\ Essential programmatic
knowledge may be lost with turnover of this magnitude. We urge Congress
to ensure that adequate transition plans are in place.
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\2\ Fiscal Year 2009 PHMSA Budget Submission, page 50.
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Regulatory Backlog
This year OHMS has designated four rulemakings as ``significant,''
the same number as last year. However, two from the old list were
completed and two new ones have been opened.\3\ In addition to these
four priority rulemakings, OHMS is assisting the Federal Railroad
Administration with a priority rulemaking and working on 17 additional
dockets. These rulemakings do not take into account rulemaking
petitions, which OHMS has accepted but has not yet assigned to a
specific rulemaking action. OHMS has pending 24 such rulemaking
petitions.\4\ In addition, OHMS is in the 10th of a 10-year cycle to
review the impact of its regulations on small entities pursuant to the
Regulatory Flexibility Act (RFA).\5
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\3\ DOT Rulemaking List, Fall 2007. http://www.reginfo.gov/public/
do/eAgendaMain.
\4\ http://dms.dot.gov/reports/PHMSA_report.cfin, February 13,
2008.
\5\ Public Law 96-354, section 610 as amended.
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Since the enactment of the 2005 HMTA amendments, OHMS' special
permit workload has decreased because permits may now be issued for
periods up to 4 years, rather than the previous 2 year limitation.
Still, OHMS processes nearly 200 special permit requests annually--a
commendable effort. However, this does not reveal how timely the
special permit workload is handled. OHMS is under a statutory mandate
to process special permits within 180 days. Yet last year, ``lack of
staff resources given other priorities or volume of applications'' was
the reason given 81 percent of the time that special permit
applications were delayed. A helpful workload indicator may be the
actual number of special permit requests received, the actual number
processed, and of that number, the actual number processed within the
statutory 180-day deadline set by Congress.
One aspect of the hazmat regulatory workload that continues to
present concern is the processing of petitions for preemption. This
activity is managed by the PHMSA Office of Chief Counsel. Six petitions
for preemption determinations are currently pending. There has been no
change in the status of these petitions during the last year. Neither
these, nor any prior petition for preemption, have been processed
within the congressionally mandated 180-day turnaround.\6\ PHMSA's
ability to swiftly deal with petitions for preemption is essential to
the purpose Congress hoped to achieve in granting administrative
preemption to DOT, namely that the preemption determination process
would be an alternative to litigation.\7
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\6\ 49 U.S.C. 5125(d).
\7\ In authorizing the preemption determination process, Congress
found that ``the current inconsistency ruling process has failed to
provide a satisfactory resolution of preemption issues, thus
encouraging delay, litigation, and confusion.'' H. Rept. 101-444, part
1, page 21.
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Hazmat Registration and Fees
We have appreciated the oversight the House and Senate
Appropriations Committees have provided to ensure that fee collections
have not been spent on activities above authorized amounts. The 2005
amendments to the HMTA nearly doubled the fees to be collected in
support of the Emergency Preparedness Grant Program (EPGP), ``train-
the-trainer'' grants for first responders, publication of the Emergency
Response Guide, and, for the first time, grants to train hazmat
employees. At the same time, the statute requires OHMS to adjust the
amount of the fees charged to account for unexpended balances that
accrue to the fund. In the past, OHMS failure to adjust fees due to
over-collection resulted in litigation.\8\ OHMS finds itself again with
a substantial $18 million over-collection. As a result, OHMS is not
proposing to increase hazmat registration fees for the 2008-2009
registration year to cover the increases authorized by the 2005
amendments.\9\ But, we expect a rulemaking to increase fees in fiscal
year 2009.
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\8\ Hazardous Materials Advisory Council, Inc. et al. v. Mineta,
No. 02-01331, (D.D.C., filed July 1, 2002).
\9\ The 2005 amendments were enacted too late to appropriate
increases to the fiscal year 2006 EPGP. Fiscal year 2007 was funded on
a continuing resolution. Fiscal year 2008.
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Our concern about over-collection of hazmat fees stems from the
statutory provision that allows OHMS to transfer fees ``without further
appropriation'' from the Hazardous Materials Emergency Preparedness
Fund (HMEPF).\10\ It is important, therefore, that the subcommittee
continue to scrutinize the amount of hazmat fees that can be
transferred from the HMEPF and to cap transfers at levels the
subcommittee believes will be appropriately spent.
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\10\ 49 U.S.C. 5116(i).
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OHMS is authorized to assess a separate fee to process registration
submissions. Currently, that fee is $25 per registration. The fiscal
year 2009 budget request cuts the amount needed to cover the costs of
registration processing from $1.2 million to $765,000. OHMS has been
able to reduce costs through system automation, bringing the
registration program in-house, and by eliminating costly 24/7 emergency
registration processing. We fully support the registration program
whose purpose is to provide OHMS information on the community it
regulates, and have no objection to paying fees for this function.
Thirty percent of the $13.5 million fee increase provided by the
2005 amendments is earmarked to train trainers of private sector hazmat
employees or hazmat employees themselves.\11\ This program is of
questionable benefit because the training provided is limited to that
offered by non-profit hazmat employee organizations that are unlikely
to be relied upon to provide the specific and specialized training each
``hazmat employer'' is required by law to provide to address its own
unique hazmat environment. Any potential hazmat employee who availed
themselves of such training from a third-party non-profit training
organization would still have to be trained in his employer's hazmat
operations. The program amounts to double taxation for hazmat employee
training. The real issue with private sector training is assessing the
quality of the training that is available. Given the millions of
dollars in fees industry is already paying to fund other aspects of the
EPGP, this program cannot be justified. If fee revenue will be
allocated for hazmat employee training, OHMS is proposing some creative
options to make the program more palatable. First, OHMS is committed to
competitively award the hazmat employee training grants, a good
Government decision that should be supported.\12\ Second, OHMS is
proposing to limit the hazmat employee grant program to $2 million.
With this allotment, OHMS could still train 50,000 employees.\13\
Third, the agency is proposing to redirect $1.5 million of the
remaining fees to fund its authority to establish grants and
cooperative agreements.\14\ This initiative proposes to create a data
repository of training materials developed using EPGP funds. Fourth,
OHMS is proposing to develop training competency standards and
instructor guidelines and to offer instructor certification as a way to
improve the quality of training available to the hazardous materials
community.\15
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\11\ 49 U.S.C. 5107(e) & 5128(c).
\12\ Fiscal Year 2009 PHMSA Budget Submission, page 129.
\13\ OHMS estimates that training will cost $40.00/employee. OHMS
estimates that only 25,000 will be trained. However,
2,000,00040=50,000. See fiscal year 2009 PHMSA Budget Submission, page
52.
\14\ 49 U.S.C. 5121(g). Fiscal year 2009 PHMSA Budget Submission,
page 131. These grant funds are in addition and not to be confused with
the $1.25 million OHMS receives from the Federal highway trust fund to
support research projects identified by the National Academy of
Sciences. See. Public Law 109-59, sec. 7131, and fiscal year 2009 PHMSA
Budget Submission, page 43.
\15\ Fiscal Year 2009 PHMSA Budget Submission, page 42.
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Emergency Planning and Training Grants
The purpose of the Emergency Preparedness Grants Program (EPGP) is
to cover the ``unfunded'' Federal mandate that States develop emergency
response plans and to contribute toward the training of emergency
responders. Industry has contributed, through hazmat registration fees,
nearly $199 million during the life of the grants program. More
accountability is needed in the EPGP and more evidence of coordination
among other similar Federal initiatives to ensure that all resources
are used as efficiently and effectively as possible. Congress directed
OHMS to submit annual reports to Congress on the allocation and uses of
the grants, the identity of the ultimate recipients, a detailed
accounting of all grant expenditures, as well as an evaluation of the
efficacy of the programs carried out.\16\ No reports or information
have been forthcoming. The subcommittee is best suited to insist on
this level of oversight.
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\16\ 49 U.S.C. 5116(k).
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As an indication of congressional concern that the LEPC set-aside
may not be the best use of the new $9 million fee increase in the EPGP,
the 2005 HMTA amendments provide OHMS discretion to limit or deny new
funding. Yet, OHMS has not exercised this discretionary authority, nor
does it describe any sort of analysis that would justify ignoring this
funding opportunity. OHMS should be asked to prioritize the needs and
value of the planning and training portions of the EPGP to the safety
and security of hazardous materials transportation. The subcommittee
should use this information to redirect the new $9 million allocation
up to the maximum extent allowed.
While the law provides that OHMS can expend industry's hazmat
registration fees for the EPGP ``without further appropriation,'' we
would encourage the subcommittee to exercise its oversight to address
programmatic issues and concerns before handing over a blank check. The
subcommittee has established congressional precedent in this area,
setting caps on the amount of the fees that may be expended for the
EPGP.
Program Priorities
OHMS lays out an aggressive array of priorities for the fiscal year
2009 funding request. In particular, we are particularly pleased to see
plans to charter a Hazardous Materials Technical Advisory Committee
(HMTAC). The HMTAC would be modeled after successful advisory
committees currently serving the Federal Motor Carrier Administration
and the Federal Railroad Administration, with representation from the
regulated community, State and local government and the public
sector.\17\ Likewise, we support several training initiatives OHMS
outlines to address the needs of the agency for a skilled workforce, to
improve the competency of Federal and State hazmat investigators, and
to promote professionalism throughout the regulated community.\18\ We
are particularly enthused by OHMS' proposal to develop curriculum for
the regulated community and to establish an exclusive authority to
certify hazmat professionals.
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\17\ Fiscal Year 2009 PHMSA Budget Submission, page 47.
\18\ Fiscal Year 2009 PHMSA Budget Submission, page 50.
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OHMS also proposes to establish a Integrity Management Program.\19\
This type of initiative is a hallmark of the pipeline regulatory
program. However, we are approaching this initiative for the hazmat
community with a degree of caution. The hazmat community is so diverse
that relatively few entities have systemwide control of a hazmat
shipment. Typically, a hazmat shipment will involve multiple offerors
and carriers as a package transits from the manufacturer to the end
user. OHMS has suggested that some form of regulatory relief will be
the reward of those that employ a IMP approach. However, the one factor
that underpins the undisputed success of the Federal regulatory program
is the very uniformity of its requirements. It remains to be seen how
IMP relief will translate into a regulatory environment dependent on
uniformity to function safely and efficiently.
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\19\ Fiscal Year 2009 PHMSA Budget Submission, page 49.
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conclusion
The transport of hazardous materials is a multi-billion dollar
industry that employs millions of Americans. This commerce has been
accomplished with a remarkable degree of safety, in large part, because
of the uniform regulatory framework authorized and demanded by the
HMTA. Within the Federal Government, OHMS is the competent authority
for matters concerning the transportation of these materials. Finally,
we note that OHMS intends to kick-off a number of innovative
initiatives with a flat-lined budget and in the face of unprecedented
staff turnover, largely due to retirements. We, therefore, strongly
recommend full funding for OHMS.
______
Prepared Statement of the Capital Metropolitan Transportation
Authority, Austin, Texas
Mr. Chairman and members of the subcommittee: On behalf of the
Capital Metropolitan Transportation Authority in Austin, Texas, I am
pleased to submit this statement for the record in support of our
fiscal year 2009 funding requests from the Federal Transit
Administration and the Federal Highway Administration for Capital
Metro--the transportation provider for Central Texas. I hope you will
agree that the appropriating of funds for these Central Texas projects
warrants serious consideration as Austin and the surrounding Texas
communities plan for our region's growing transportation needs.
First, let me thank you for your past financial support for
transportation projects in Central Texas. Your support has proven
valuable to Capital Metro and to our Central Texas community as we face
new challenges.
As you know, Interstate 35 runs from Canada to Mexico, and along
the way it also runs through the city of Austin and Capital Metro's 600
square mile service area. While traffic in this important corridor has
always been a challenge, the North American Free Trade Agreement has
resulted in increased traffic and congestion for our region. In fact, a
2002 study by the Texas Transportation Institute determined Austin,
Texas to be the 16th most-congested city nationwide.
Also, Central Texas' air quality has reached near non-attainment
levels. Together, our community has developed a Clean AirForce, of
which Capital Metro is a partner, to implement cooperative strategies
and programs for improving our air quality. Capital Metro has also
unilaterally implemented several initiatives such as converting its
fleet to clean-burning Ultra Low Sulfur Diesel (ULSD), becoming the
first transportation authority in Texas to introduce environmentally-
friendly hybrid-electric buses, and creating a GREENRide program to
carpool Central Texas workers in low emission hybrid gas/electric
automobiles.
To address these transportation and air quality challenges as well
as our region's growing population, in 2004 Capital Metro conducted an
extensive community outreach program to develop the All Systems Go
Long-Range Transit Plan. This 25-year transportation plan for Central
Texas was created by Capital Metro, transportation planners, and local
citizens. More than 8,000 citizens participated in the design of the
program that will bring commuter rail and rapid bus technologies to
Central Texas. The plan will also double Capital Metro's bus services
over the next 25 years.
By a vote of over 62 percent, this long-range transportation plan
was adopted by the Central Texas community in a public referendum on
November 2, 2004. The plan received bipartisan support, along with
endorsements from the business community, environmental organizations,
neighborhood associations, and our community leaders.
An important component of the All Systems Go Long Range Transit
Plan is the creation of an urban commuter rail line along a 32-mile
long freight rail line currently owned and operated by Capital Metro.
The proposed starter route would provide urban commuter rail service
extending from downtown Austin (near the Convention Center) through
East and Northwest Austin and on to Leander. This project was entirely
financed with local funds and will open in late 2008.
To implement the community's All Systems Go Transit Plan, Capital
Metro is seeking $10 million for fiscal year 2009 for three projects of
importance to our Central Texas community. Each of the three projects
is contained in the community-designed All Systems Go Long Range
Transit Plan, and each will be funded by Capital Metro with a
significant overmatch of local funds.
enhancement and improvement of buses and bus facilities--$5 million
Capital Metro has embarked on a long term plan to improve and
expand bus service. In addition to improving bus routes, the agency is
investing in critical park and ride facilities, transit centers and
enhanced bus stop locations and amenities. As Capital Metro's service
area and the population we serve continue to grow, we will continue to
enhance our system and facilities while addressing traffic congestion
and air quality concerns. In the next 3 years, Capital Metro has
planned to invest nearly $300 million in capital projects to better
serve our growing population. Capital Metro seeks $5 million from the
appropriations process for these improvements and expansions of our bus
service and facilities.
hike and bike trail--$3 million
During Capital Metro's 2004 All Systems Go open houses, workshops
and briefings, the Central Texas community encouraged Capital Metro to
begin planning for bike and pedestrian trails along rail lines. Capital
Metro has coordinated local efforts to plan for pedestrian and bicycle
trails along several rail corridors in Capital Metro's service area.
Capital Metro is seeking $3 million for its planned pedestrian and
bicycle trail located in the right of way of its 32-mile Urban Commuter
Rail line from Austin to Leander.
paratransit service vehicles--$2 million
Pursuant to, and in accordance with, the Americans with
Disabilities Act, Capital Metro provides door-to-door van and sedan
paratransit service throughout Central Texas for persons with
disabilities and senior citizens. This $11.7 million fiscal year 2008
program provides more than 500,000 rides each year. Capital Metro will
be replacing many of the vans and sedans that serve this program, as
they are retired during fiscal year 2009. This crucial funding will
assist Capital Metro in ensuring the accessibility of transportation
services for all Central Texans.
I look forward to working with the Committee in order to
demonstrate the necessity of these projects. Your consideration and
attention are greatly appreciated.
______
Prepared Statement of the National Association of REALTORS
the federal housing administration`s role in addressing the housing
crisis
The mortgage crisis continues to grow--homeowners continue to face
foreclosure, and housing markets are in turmoil. For all these reasons,
I and the 1.3 million members of the National Association of REALTORS
thank you for holding this hearing on ``The Federal Housing
Administration`s Role in Addressing the Housing Crisis.''
In 1934 the Federal Housing Administration was established to
provide consumers an alternative during a similar lending crisis. FHA
served as the foundation for our housing market, which has served our
citizens and our economy well for more than 70 years.
However, as private mortgage markets evolved, FHA remained
stagnant. Because FHA was unable to serve its core constituency, other
mortgage providers stepped in to fill the gap. Without another
alternative, many homebuyers were lured into these more exotic mortgage
options, which fueled our current crisis. Even after all of this
evidence, the need for a viable FHA remains unmet. Despite the best
efforts of you and others, FHA reform has yet to be achieved.
We urge you and your colleagues in the Senate to continue to work
towards FHA reform. Permanent, realistic increases in the FHA loan
limits; lowered FHA downpayment requirements; and new opportunities for
condominium purchases are needed to create safe and affordable mortgage
options for homebuyers and those wishing to refinance. These changes
will also provide much needed stability to our local housing markets
and economies.
We also believe that the FHASecure program has been, and can
continue to be a valuable tool for homeowners in crisis. This program,
introduced in September 2007, gives credit-worthy homeowners who were
making timely mortgage payments but are now in default, a second chance
with a FHA insured loan product. We believe enhancements to this
program can help an even greater number of borrowers without negatively
impacting the sovereignty of the FHA insurance fund.
As you know, through FHASecure, lenders and homeowners may
refinance mortgages that, due to the increased mortgage payment
following the interest rate reset have become delinquent. However, in
many cases, subprime borrowers are becoming delinquent for reasons
other than an interest rate reset meaning a rate reduction alone will
not help borrowers avoid default or foreclosure.
Specifically, we believe that where prudent, FHA should modify
underwriting criteria in return for a lower loan-to-value ratio thereby
assuring the lenders share risk. Changes include:
--Permit late payments on fixed-rate and on conventional adjustable-
rate mortgages without regard to interest rate reset or higher
DTI ratios.
--Create a sliding scale whereby the number of late payments allowed
for qualification is dependent on the LTV ratio. For example,
LTV = 90 percent, with several late payments = 80 percent LTV.
--Permit second mortgage with CLTV treatment like FHASecure.
A borrower would only be permitted to utilize one of the program
changes mentioned above for their mortgage. Loans that qualify for
FHASecure under these changes could be placed into a special risk
insurance fund to further protect FHA.
We submitted these recommendations to HUD on February 15, for their
consideration. Based upon testimony given by the FHA Commissioner on
April 9, 2008 before the House Financial Services Committee, we are
hopeful that these changes will be implemented. The enhancements
proposed will allow a greater number of borrowers to avoid foreclosure
and reduce their burden of debt. Risk to FHA will continue to be
mitigated by traditional FHA underwriting standards beyond the
recommended enhancements to the FHASecure Program.
The National Association of REALTORS thanks you for your efforts
to help stem the housing crisis. Congress must act expeditiously to
help our Nation's homeowners, communities, and local economies recover.
We applaud you efforts and stand ready to work with you on solutions.
______
Prepared Statement of the University Corporation for Atmospheric
Research (UCAR)
On behalf of the University Corporation for Atmospheric Research
(UCAR) and the university community involved in weather and climate
research and related education, training and support activities, I
submit this written testimony for the record of the Senate Committee on
Appropriations, Subcommittee on Transportation and Housing and Urban
Development, and Related Agencies.
UCAR is a consortium of 71 universities that manages and operates
the National Center for Atmospheric Research (NCAR) and additional
research, education, training, and research applications programs in
the atmospheric and related sciences. The UCAR mission is to serve and
provide leadership to the atmospheric sciences and related communities
through research, computing and observational facilities, and education
programs that contribute to betterment of life on Earth. In addition to
its member universities, UCAR has formal relationships with over 100
additional undergraduate and graduate schools including several
historically black and minority-serving institutions, and 40
international universities and laboratories. UCAR is supported by the
National Science Foundation (NSF) and other Federal agencies including
the Federal Highway Administration (FHWA), and the Federal Aviation
Administration (FAA). I would like to comment on the fiscal year 2009
budgets for these agencies.
the federal highway administration
The fiscal year 2009 budget request for the FHWA should support the
administration's and the country's commitment to a safe, efficient, and
modern surface transportation system. Weather research and intelligent
transportation system (ITS) technology significantly contributes to
this commitment. According to the National Academy of Sciences, adverse
weather conditions obviously reduce roadway safety, capacity and
efficiency, and are often the catalyst for triggering congestion. In
the United States each year, approximately 7,000 highway deaths and
450,000 injuries are associated with poor weather-related driving
conditions. This means that weather plays a role in approximately 28
percent of all crashes and accounts for 19 percent of all highway
fatalities.
Road Weather Research and Development Program--Request: $3.3 Million
Bad weather contributes to 15 percent of the Nation's congestion
problems; the economic toll of weather-related deaths, injuries and
delays is estimated at $42 billion per year. The Road Weather Research
and Development Program (section 5308 in the SAFETEA-LU authorization
bill) funds the collaborative work of surface transportation weather
researchers and stakeholders. This work is potentially life saving for
the users of the national surface transportation system. Much has been
accomplished already in understanding and developing decision support
systems to address the impact of poor weather on the surface
transportation system including congestion. For example, State
Departments of Transportation (DOTs) have already benefitted from the
development and implementation of real world decision support
solutions, including the Winter Maintenance Decision Support System
which has been successfully demonstrated by 23 State DOTs, and the
Clarus System, a research and development initiative to demonstrate and
evaluate the value of integrating and processing data from State DOT
weather observation systems across the Nation. However, additional
resources are required to develop technologies that will support
improvements in traffic and emergency management to develop, test, and
implement solutions nationally that will reduce congestion and save
lives.
A fully funded Road Weather Research and Development Program could
support such activities as developing technologies that would integrate
weather and road condition information in traffic management centers,
improved understanding of driver behavior in poor weather, developing
in-vehicle information systems and wireless technologies that provide
warnings to drivers when poor weather and road conditions exist,
improving the understanding of the impact of weather on pavement
condition, and developing new active control strategies (e.g., signal
timing and ramp metering) optimized for poor weather and road
conditions.
SAFETEA-LU (section 5308) contains language that established the
Road Weather Research and Development Program within the FHWA ITS
Research and Development Program, with annual authorized funding at
$5.0 million (significantly less than the National Research Council's
recommendation of $25.0 million). This road weather research program is
well supported by numerous organizations including the American
Association of State Highway and Transportation Officials (AASHTO), the
Intelligent Transportation Society of America (ITSA), the
Transportation Research Board (TRB), the National Research Council
(NRC), State Departments of Transportation (DOTs), numerous commercial
weather service companies, and the American Meteorological Society
(AMS). Improved safety, capacity, efficiency and mobility, of the
national roadway system will benefit the general public, commercial
trucking industry, State DOT traffic, incident and emergency managers,
operators and maintenance personnel. Environmental benefits will be
realized due to improved efficiency in the use of anti-icing and
deicing chemicals for winter maintenance, reduced congestion, and
improved mobility. I urge the subcommittee to fund the Road Weather
Research and Development Program at the authorized level of $5.0
million, at a minimum, in fiscal year 2009.
federal aviation administration (faa)
Fliers nationwide are stuck in an air traffic jam. Famous for
delays, Chicago, New York, and most recently, Newark airports, have all
reached travel capacity, forcing them to reduce the number of flights
in and out. To make matters worse, it is estimated that by 2025 U.S.
air transportation will increase two to three times. Today's existing
air traffic control system will not be able to manage this staggering
growth rate. Fortunately, the Federal Government has proactively
responded by undertaking an unprecedented initiative: the Next
Generation Air Transportation System (NextGen). While a joint effort
involving a number of agencies, the FAA has taken the lead by
developing a budget that truly supports developing and implementing
NextGen. The FAA accounts mentioned in this testimony all support the
much-needed transformation of the National Airspace System.
research and engineering development account (re&d)
The following programs can be found within the RE&D section of the
fiscal year 2009 FAA budget request.
Weather Program--Request: $16.9 Million
According to the FAA, 70 percent of flight delays are caused by
weather. A key area for NextGen is using advanced forecasting
techniques and shared information among all system users--dispatchers,
pilots and controllers. FAA's Weather Program is a research program
focused on improved forecasts of atmospheric hazards such as
turbulence, icing, thunderstorms and restricted visibility. Improved
forecasts enhance flight safety, reduce air traffic controller and
pilot workload, and enable better flight planning and productivity. The
request of $16.9 million, however, is essentially flat; in real terms,
it is down. To truly reduce delays associated with weather, it is
essential this program be provided at least $20 million. Enhanced
research and improved technologies will result in longer forecast lead
times, increased accuracy and ultimately, more efficiency and safer
skies. Two years ago, the request for the Weather Program was $19.5
million, but has declined since. I urge the subcommittee to support the
goals of NextGen and provide the Weather Program $20.0 million, at a
minimum, in fiscal year 2009.
Weather Technology in the Cockpit--Request: $8 Million
Weather, according to the FAA, is more than twice as likely to
cause general aviation fatalities as any other factor and is also the
largest cause of general aviation fatalities in the United States,
equating to 200 deaths annually. Weather uplinks in the cockpit, when
combined with a thorough preview of the weather during pre-flight
planning and other cockpit weather avionics, will help ensure that
general aviation pilots increase awareness and reduce accidents.
Weather Technology in the Cockpit, a new and innovative program, will
provide a common weather picture to pilots, controllers, and users, and
will expedite flight planning and decisionmaking. ``Cockpit weather''
applied research will focus on hardware and software standards,
integrate weather information, and prototype forecasting products for
the flight deck. I urge you to support the fiscal year 2009 request of
$8 million, which will revolutionize the way pilots and controllers
receive and use weather information in real-time.
Joint Planning and Development Office (JPDO)--Request: $20 Million
The multi-agency Joint Planning and Development Office (JPDO) has
accomplished much since its inception 5 years ago. The JPDO has a
challenging mandate: to coordinate and manage six agencies focused on
bringing NextGen online by 2025. It has completed its integrated work
plan on how NextGen will improve safety, security, mobility,
efficiency, and capacity to transform the Nation's air transportation
system. Recently, the Secretary of Transportation tasked the JPDO to
develop an action plan that would accelerate implementation of NextGen.
The plan will address constraints and opportunities in both the near-
and mid-term. After the action plan is approved, the intent is for the
partner departments and agencies to start immediate implementation. In
order to move forward with this directive, I urge the subcommittee to
fund the Joint Planning and Development Office at the fiscal year 2009
request of $20 million.
Wake Turbulence--Request: $10.1 Million
Aircraft in flight create wake turbulence, dangerous swirling air
masses that trail from aircraft wingtips. Better detection and
forecasting of wake turbulence is a key element in the FAA's safety
program. Research results and technologies derived from the Wake
Turbulence program will allow airports and airlines to operate more
efficiently, increasing capacity and safety, by providing a better
understanding of this phenomenon. I urge the subcommittee to support
the fiscal year 2009 request of $10.1 million for the wake turbulence
program.
Atmospheric Hazards/Digital System Safety--Request: $4.8 Million
The Atmospheric Hazards/Digital System Safety Research Program
focuses on reducing the number of accidents or potential accidents
associated with aircraft icing. The program promises to develop and
test technologies that detect icing, predict anti-icing fluid failure,
and ensure safe operations both during and after flight in icing
conditions. To prevent the number and severity of icing-associated
accidents, I urge you to support the fiscal year 2009 request of $4.8
million for this life-saving program.
within faa's air traffic organization--capital programs, i would ask
that you pay particular attention to the following critical programs
NextGen Network Enabled Weather (NNEW) and Reduced Weather Impact
Request: NNEW: $20 Million Reduced Weather Impact: $14.4
million
The current weather dissemination system is inefficient to operate
and maintain. Information gathered by one system is not easily shared
with other systems. This leads to redundant and inconsistent
information, and in many cases information not being universally
available or used leading ultimately to suboptimal decisions. The
complementary goals of NNEW and RWI are to integrate tens of thousands
of global weather observations and sensor reports from ground-,
airborne-, and space-based sources into a single national (eventually
global) weather information system, constantly updated as needed. This
integration will be enabled by system-wide availability of
observational and forecast weather information to all NextGen users,
service providers, military planners, security personnel, and the
flying public. The key word is ``information.'' No longer will it be
necessary to manually gather and integrate diverse weather data to
realize a coherent picture of the weather situation--that will be
accomplished with automation assistance prior to dissemination to
interested parties. This will enable ``common situational awareness''
of the weather, and rapid dissemination of any changes.
The request of $20 million for NNEW is significantly more than the
fiscal year 2008 enacted level of $7 million, which illustrates the
FAA's commitment to NextGen. Because NextGen Network Enabled Weather
and the Reduced Weather Impact Program are directly aligned with the
goals of a flexible, safe, efficient air traffic system, I urge you to
support the fiscal year 2009 request of $20 million for NNEW and $14.4
million for Reduced Weather Impact.
Wind Profiling and Weather Research-Juneau--Request: $1.1 Million
In the late 1990s, after two 737s encountered severe turbulence
during departure from the Juneau Airport, the FAA mandated a system be
developed to provide high-wind alerts to pilots at the airport. The
Wind Profiling and Weather Research-Juneau program supports the design
and development of the Juneau Airport Wind System (JAWS), an
operational system designed to detect and warn of wind and airport
turbulence hazards. This will result in reduced severe delays and
flight cancellations. The fiscal year 2009 request of $1.1 million,
however, is a dramatic cut, which is extremely disruptive to the
research program. In order to complete the work of developing this
turbulence alerting system, I urge the subcommittee to support the
fiscal year 2008 enacted level of $4.0 million for Wind Profiling and
Weather Research-Juneau.
On behalf of UCAR, as well as all U.S. citizens who use the surface
and air transportation systems, I want to thank the subcommittee for
the important work you do that supports the country's scientific
research, training, and technology transfer. We understand and
appreciate that the Nation is undergoing significant budget pressures
at this time, but a strong Nation in the future depends on the
investments we make in research and development today. We appreciate
your attention to the recommendations of our community concerning the
fiscal year 2009 FHWA and FAA budgets and your concern for safety
within the Nation's transportation systems.
______
Prepared Statement of the Coalition of Northeastern Governors
The Coalition of Northeastern Governors (CONEG) is pleased to share
with the Subcommittee on Transportation, Housing and Urban Development,
and Related Agencies this testimony on fiscal year 2009 appropriations
for transportation and community development programs. The CONEG
Governors appreciate the subcommittee's longstanding support of funding
for the Nation's highway, transit, and rail systems and critical
community development programs. We understand the particularly
difficult fiscal challenges and complex, interlocking issues that the
subcommittee faces in crafting this appropriations measure. We urge the
subcommittee to continue the strong Federal partnership so vital for a
national, integrated, multi-modal transportation system. This network
underpins the competitiveness of the Nation's economy, broadens
employment opportunities, and contributes to the efficient, safe,
environmentally sound, and energy smart movement of people and goods.
transportation
Surface Transportation
The Governors recognize the impending shortfall in the Highway
Trust Fund and the still-uncertain outcome of proposed short-term
solutions. However, we urge the subcommittee to fund the combined
highway, public transit, and safety programs at the fiscal year 2009
levels authorized in the Safe, Accountable, Flexible, Efficient
Transportation Equity Act: A Legacy for Users (SAFETEA-LU). This level
of Federal investment is necessary to sustain the progress made under
SAFETEA-LU to improve the condition and safety of the Nation's
highways, bridges, and transit systems.
Continued and substantial Federal investment in these
infrastructure improvements--in urban, suburban, exurban, and rural
areas--is necessary to safely and efficiently move people and products
and support the substantial growth in freight movement projected in the
coming decades. A significant increase in public investment is needed
to keep America competitive in a global economy. According to the
majority report of the National Surface Transportation Policy and
Revenue Study Commission, at least $225 billion annually is needed from
all sources--public (Federal, State and local) and private--for the
next 50 years to upgrade the existing infrastructure system to a state
of good repair and to create the advanced system that can sustain and
ensure strong economic growth nationwide.
Specifically, the CONEG Governors urge the subcommittee to:
--support a Federal aid highway obligation limit at the authorized
level of $41.2 billion; and
--fund public transit at the authorized funding level of $10.3
billion, including full funding for Formula and Bus Grants, the
Capital Investment Grants, and the Small Starts Programs.
The Governors also urge the subcommittee to fund the Transit
Security Grant program at the full $750 million as authorized in Public
Law 110-53 (Implementing Recommendations of the 9/11 Commission Act of
2007). This critically needed funding makes the Federal Government a
partner with State and local governments and public transportation
authorities in enhancing the security of the Nation's public
transportation systems and their tens of millions of riders.
While recognizing the difficult decisions facing the Congress, the
Governors are also concerned about several techniques--actual or
proposed--to manage the Highway Trust Fund and appropriations outlays.
For example, the recent practice of mandating how to rescind
unobligated highway funding is now cutting into the States' ability to
make planned investments and deliver much needed transportation
improvements.
The Governors also oppose the administration's proposal to cover
the projected shortfall in the Highway Account of the Highway Trust
Fund by transferring $3.2 billion from the Mass Transit Account to the
Highway Account. This proposal would jeopardize the future of public
transportation funding while sidestepping the underlying problem facing
the Highway Account. A more appropriate short-term solution is timely
action on the proposals to secure additional revenues to the Highway
Account contained in title II of the American Infrastructure Investment
and Improvement Act of 2007 (S. 2345) currently pending in the Senate.
Rail
Rising fuel prices and congested highways and airways make
intercity passenger rail an ever more vital component of a national,
balanced transportation system. Increasing market demand for intercity
passenger rail travel is creating unique opportunities for growth in
Amtrak's revenue. Amtrak's ability to respond to these opportunities
requires substantial and on-going maintenance and ``state of good
repair'' capital investments essential for the reliable, on-time
service that attracts and retains ridership.
The Governors request that the subcommittee provide $1.78 billion
in fiscal year 2009 Federal funding for Amtrak, with specific funding
levels provided for operations, capital, and debt service. We recognize
that Amtrak faces a one-time need for additional funding in fiscal year
2009 to meet its legal obligations for ``back pay'' as part of the
Presidential Emergency Board recommendations, which are close to final
ratification.
A funding level of $801.4 million in fiscal year 2009 for capital
improvements is critically needed for the ``state of good repair''
improvements to aging infrastructure and equipment. These capital
investments are vital to Amtrak's ability to deliver efficient,
reliable, quality service nation-wide. We particularly encourage the
subcommittee to ensure that Amtrak can continue bridge repair projects
underway on the Northeast Corridor, as well as the system-wide security
upgrades and the life-safety work in the New York, Baltimore, and
Washington, DC tunnels as authorized under Public Law 110-53 (sections
1514 and 1515).
The Governors recognize that the subcommittee has initiated
internal Amtrak reforms while intercity passenger rail authorization
legislation is pending. We welcome the subcommittee's consistent
commitment to continued transparency and accountability in Amtrak's
financial and data systems, and to meaningful collaboration in its
dealings with State partners. This guidance, including the requirement
that Amtrak consult with its State partners and report to the Congress
on the results of those discussions, has set the stage for productive
coordination and information-sharing, particularly on the future of the
Northeast Corridor Network.
The CONEG Governors appreciate the subcommittee's leadership in
creating and providing initial funding for the State Intercity
Passenger Rail Grant Program. This program provides an important
foundation for a vibrant Federal-State partnership that will bring
expanded, enhanced intercity passenger rail service to corridors across
the Nation. We urge the subcommittee to provide the requested $100
million for this program, and to ensure that 10 percent is directed to
corridor development planning and that an additional 5 percent to
essential education and outreach initiatives.
A number of other national rail programs are important components
of the evolving Federal-State-private sector partnerships to enhance
passenger and freight rail across the country. We encourage the
subcommittee to provide funding for the Rail Relocation Program, the
Swift High Speed Rail Development Program, the Next Generation High
Speed Rail program, and the Nationwide Differential Global Position
System effort--all of which benefit passenger rail and freight rail
systems. In addition, initial funding for the Advanced Technology
Locomotive Grant Pilot Program, created in section 1111 of the Energy
Independence and Security Act of 2007, would be an important first step
to assist the railroads and State and local governments in a transition
to energy-efficient and environmentally friendly locomotives for
freight and passenger railroad systems.
The CONEG Governors also support a modest increase in funding for
the Surface Transportation Board (STB) above the overall $26.3 million
provided in fiscal year 2008. This funding level will allow the STB to
provide critical oversight as the Nation's rail system assumes
increasing importance for the timely, efficient, and environmentally
sound movement of people and goods across the Nation.
community development
The CONEG Governors urge the subcommittee to provide at least $4.1
billion for the Community Development Block Grant (CDBG) program. The
CDBG program enables States to provide funding for infrastructure
improvement, housing programs, and projects that attract businesses to
urban, suburban, exurban, and rural areas, creating new jobs and
spurring economic development, growth and recovery in the Nation's low
income and rural communities.
The CONEG Governors thank the entire subcommittee for the
opportunity to share these priorities and appreciate your consideration
of these requests.
______
Prepared Statement of the National Congress of American Indians
On behalf of the National Congress of American Indians, we are
pleased to present testimony on the administration's fiscal year 2009
budget request for transportation and housing programs. We look forward
to working with this subcommittee to ensure that the critical programs
and initiatives funded are at levels which will ensure their long term
effectiveness.
background
Housing
A successful start in life depends on safe, quality and affordable
housing, which helps to prevent and alleviate other physical and social
problems from occurring, including lack of educational achievement and
poor health. These types of problems make it difficult to obtain and
maintain employment, creating further economic hardship for Indian
families. The Native American Housing and Self-Determination Act
(NAHASDA) allowed tribes to be more resourceful in creating homes for
their members. NAHASDA modernize how Native American housing funds are
provided by recognizing tribes' authority to make their own business
decisions. Tribes have been able to increase capacity housing and
improve infrastructure conditions in Indian Country. However, housing
need continue to rise as do the maintenance needs of Housing and Urban
Development (HUD) homes.
Because of NAHASDA, tribes are better able to address the needs of
their communities. In 1995, 20 percent of tribal residents lacked
complete plumbing. This number was reduced to 11.7 percent by 2000,
although it is still far higher than the 1.2 percent for the general
population. In 2000, 14.7 percent of tribal homes were overcrowded, a
drop from 32.5 percent in 1990. Despite improvements, severe conditions
still remain in some tribal homes, with as many as 25-30 people living
in houses with as few as three bedrooms. Native Americans are also
becoming homeowners at an increasing rate, 39 percent more from 1997 to
2001. Fannie Mae's investment in mortgages increased exponentially,
from $30 million in 1997 to more than $640 million in the most recent 5
year period.
Although tribes have the desire and potential to make headway in
alleviating the dire housing and infrastructure needs of their
communities, tribes' housing needs remain disproportionately high and
disproportionately underfunded. Due to funding levels and population
growth tribal housing entities are only able to maintain the status
quo.
Transportation
The nearly 56,000 mile system of Indian Reservation Roads (IRR) is
the most underdeveloped road network in the Nation \1\--yet it is the
primary transportation system for all residents of and visitors to
American Indian and Alaska Native communities. Over two-thirds of the
roads on the system are unimproved dirt or gravel roads, and less than
12 percent of IRR roads are rated as good.\2\ The condition of IRR
bridges is equally troubling. Over 25 percent of bridges on the system
are structurally deficient.\3
\\---------------------------------------------------------------------------
\1\ Bureau of Indian Affairs, Transportation Serving Native
American Lands: TEA-21 Reauthorization Resource Paper (2003).
\2\ Id.
\3\ Id.
---------------------------------------------------------------------------
Building a transportation system that allows for safe travel and
promotes economic expansion will help us strengthen our tribal
communities while at the same time making valuable contributions to
much of rural America. Surface transportation in Indian Country
involves thousands of miles of roads, bridges, and highways. It
connects and serves both tribal and non-tribal communities.
Tribal communities share much the same obstacles as rural
communities in addressing how to improve transportation needs. NCAI has
diligently worked with tribal governments to find solutions for
improving the transportation infrastructure of Indian Country. Tribes
are pro-active in this effort through the legislative process, by
building partnerships with other entities, and by generating revenue to
assist in financing their transportation projects.
Even though great strides have been made, there is still a
tremendous need to address the terrible conditions of surface
transportation on tribal land. These conditions significantly impact
the daily lives of tribal members and the entire governments of tribal
nations. Tribal communities as well as rural America require a proper
infrastructure if they are both to become thriving hubs of economic
growth and opportunity.
Economic development cannot occur without a solid foundational
infrastructure that must involve adequate surface transportation.
Improving transportation systems sets the stage for economic
development. Connecting people within tribal communities and to the
areas and communities that surround Indian Country is vital for
business, industry, and labor. Sustaining both the tribal communities
and surrounding communities through viable surface transportation
systems improves the lives of all involved.
Another important reason for improving transportation systems is to
enhance public safety. Insufficient transportation systems increase the
risk factor for law enforcement and emergency personnel in responding
to emergency situations. The fatality rate on roads on the Indian
Reservation Road (IRR) System has the highest national average.
Inadequate roads are a major contributor to vehicle crashes. These
emergencies cost tribes millions of dollars each year in lost
productivity, property damage, higher insurance premiums, medical and
rehabilitative treatment. And that still does not factor in the human
suffering of victims and their families. The poor condition of many
tribal roads and bridges jeopardizes the health, safety, security and
economic well-being of our tribal members. This environment creates
dangerous and deadly situations for all who drive within Indian
Country.
department of housing and urban development
The President proposed increased funding for the Indian
homeownership program; however he proposed decreases in other Indian
programs in the HUD. The section 184: Indian Housing Loan Guarantee
Program, $420 million for fiscal year 2009, is an increase of over $53
million over the enacted fiscal year 2008 amount. This increase is to
promote homeownership and to address the lack of mortgage capital on
tribal lands. The President's request for fiscal year 2009 proposes the
amount of $627 million for the Native American Housing Block Grant, an
amount similar to his request for fiscal year 2008. In addition, the
President's budget for fiscal year 2009 requests $57 million for the
Indian Community Development Block Grant, a decrease of $5 million from
the enacted fiscal year 2008 amount.
Native American Housing Block Grant.--The President's request for
fiscal year 2009 proposes the amount of $627 million for the Indian
Housing Block Grant.
--NCAI recommends $750 million, which would maintain funding at the
fiscal year 2002 level adjusted for inflation.
Indian Community Development Block Grant.--These funds are
dedicated to improve not only housing but the overall economy and
community development of tribal communities. Community development
includes a variety of commercial, industrial and agricultural projects.
--This budget area has faced numerous and devastating reductions over
the last few years and its funding needs to be increased to a
more realistic level of $77 million.
Section 184 Program.--Created in 1992, the section 184 program
provides 100 percent reimbursement to private lenders in case of
default. Tribes have been successful in participating in this program
with little to no defaults. Under section 184, tribes or tribal members
can purchase an existing home or obtain single-close construction loans
for a stick-built or a manufactured home on a permanent foundation,
rehabilitation loans or a purchase and rehabilitation loan. This
underutilized program continues to grow as TDHEs expand their housing
programs beyond low-income programs, tailoring them to meet the needs
of their people.
--NCAI recommends $420 million for section 184.
department of transportation
Federal-aid Highway Program.--The President proposed essentially
flat funding for Indian programs in the Department of Transportation.
The President has proposed for the Federal-aid Highway Program $39.6
million, a slight increase from the $39,585,000 for enacted fiscal year
2008. Indian tribes receive funding under the Federal Lands Highway
Program (FLHP), which improves the access to and within Federal lands
such as Indian reservations.
--NCAI recommends the authorized amount of $450 million for Indian
Reservation Road Programs.
Pipeline and Hazardous Materials Safety Administration-Emergency
Preparedness Grant.--The Pipeline and Hazardous Materials Safety
Administration provides funding to Indian tribes, States, and local
governments under their program. This program primarily focuses on
reducing serious hazardous materials and pipeline transportation. This
agency provides training and planning grants to Indian tribes to
improve hazardous materials emergency preparedness. The funding request
for fiscal year 2009 is leveled for this program in the amount of $28
million.
--NCAI recommends the $28 million for the Emergency Preparedness
Grant.
Highway Traffic Safety Grant.--The National Highway Traffic Safety
Administration (NHTSA) which gives grant funding to Indian tribes,
States, and territories under their Highway Traffic Safety Grant,
includes; the supports for highway safety initiatives; to improve
traffic records and other data systems for safety traffic information;
and alcohol-impaired driving countermeasures incentives for addressing
alcohol driving incidents. For fiscal year 2009, the funding level for
this program is elevated from the enacted fiscal year 2008 in the
amount of $599 million. According to USC, tribes receive 1\1/2\ percent
of the total allocation amount. Statutorily, Indian tribes are eligible
to receive 2 percent of the total appropriation authorized amount from
the NHTSA funding amount.
--NCAI recommends that authorized amount of $4.3 million for Indian
tribes from NHTSA.
______
Prepared Statement of the Council of Large Public Housing Authorities
Chairwoman Murray, Ranking Member Bond and members of the
subcommittee, on behalf of the Council of Large Public Housing
Authorities (CLPHA), thank you for the opportunity to submit testimony
for the record on the administration's proposed fiscal year 2009 public
housing budget. CLPHA members represent virtually every major
metropolitan area in the country and on any given day, they serve more
than 1 million households. Together, they manage approximately 40
percent of the Nation's multi-billion dollar public housing stock, and
administer over 30 percent of the section 8 voucher program.
Last year, a first-ever national study measuring the economic
impact of public housing concluded that public housing is an essential
part of the housing market and makes significant contributions to local
economies. The Econsult study showed that direct spending by public
housing authorities on capital improvements, maintenance and operations
generates additional dollar-for-dollar indirect economic activity in
local communities.
Given the uncertain economic conditions of today's housing market--
with record-setting foreclosure rates among homeowners, a crisis in the
credit and home mortgage lending industries, and an insufficient supply
of rental housing nationwide--the housing crisis we are facing will
place even greater pressure on the type of decent, safe, and affordable
housing provided by public housing communities. Regrettably, this
administration's proposed fiscal year 2009 budget is a continuation of
a now 8 year effort to cripple, dismantle, devalue, and under fund
public housing as we know it.
operating fund
The administration's proposal of $4.3 billion for the Operating
Fund is a paltry increase of $100 million over last year's
appropriation. HUD's own budget justifications indicate that $5.3
billion is needed to fully fund the Operating Fund in fiscal year 2009.
Furthermore, the Operating Fund has not been fully funded since 2002
and estimates show that during those years, public housing lost nearly
$3 billion in operating subsidies alone. At 81 percent funding, in
essence, this budget proposal fails to fund 19 percent of--or
approximately 227,000--public housing units. Housing authorities will
cope with this low proration by reducing services to residents. Also,
with insufficient resources to properly maintain existing units, the
problem becomes cyclical, with more units becoming severely distressed.
Coupled with the under-funding is HUD's problematic implementation
of asset management and the restrictions HUD placed on management fees
that prevent housing authorities from charging reasonable fees for
administration. These continued shortfalls in annual public housing
funding will make the transition to asset management needlessly
difficult, if not impossible to achieve, and will result in negative
consequences for resident services.
--CLPHA requests the Senate Appropriations fully fund the Operating
Fund at the industry recommended level of $5.3 billion in
fiscal year 2009.
capital fund
The administration's proposal for $2.024 billion is approximately
$415 million less than the amount appropriated in fiscal year 2008.
This funding request is considerably lower than annual accrual needs
and therefore, funding at this level would severely under-fund accrual
needs by more than $700 million in fiscal year 2009. Furthermore, it
completely ignores the backlog of modernization needs, which could be
in the tens of billions.
The negative impacts of under-funding the Capital Fund will have
harmful trickle down effects on private sector investments. Housing
authorities are currently able to raise private capital by pledging
their future Capital Funds toward the repayment of bonds and loan. To
date, housing authorities have borrowed $3 billion through the Capital
Fund Financing Program (CFFP) and have used the money creatively to
make large-scale comprehensive improvements to their developments.
Thus, under-funding the Capital Fund will create uncertainty for
private investors. Similarly, private lenders will avoid future
investments in public housing neighborhoods. As a result, housing
authorities who borrow against their future years' Capital Fund
allocations will be unable to address future years' annual capital
needs. This will result in the delay of necessary services and
upgrades, inevitably leading to future higher costs for essential
repairs. Thus, if the Capital Fund is fully funded in fiscal year 2009,
housing authorities will be able to meet accrual needs, begin to
address the modernization backlog, and continue to encourage private
sector investment in public housing neighborhoods.
--CLPHA requests the Senate Appropriations fully fund the Capital
Fund at the industry requested level of $3.5 billion in fiscal
year 2009.
hope vi
In fiscal year 2009, for the third consecutive year, the
administration is proposing to end HOPE VI. HOPE VI is an essential
tool for public housing authorities and has leveraged more than $12
billion in additional private and public investment since the program
began in 1993. HOPE VI has transformed communities of despair and
unrelenting concentrations of poverty into mixed-income communities
that will serve as long-term assets in their neighborhoods. In 1993,
when the program was first authorized, the stated goal was to demolish
severely distressed public housing, estimated at that time to be
100,000 units. Today, 15 years later, we are still faced with a
substantial number of severely distressed public housing units and
estimates show there may be an additional 82,000 units. The work of
HOPE VI is not yet over as there is still much work to be done.
--CLPHA requests the Senate Appropriations reauthorize, expand and
provide adequate funding of $800 million for the HOPE VI
program.
tenant-based housing choice voucher program
In fiscal year 2009, the administration is proposing $14.3 billion
and an offset of $600 million for renewals under the Tenant-Based
Housing Choice Voucher Program. However, the industry estimates that
$15.4 billion is needed for tenant-based renewals. Therefore, HUD's
request would fail to support between 55,000-100,000 vouchers currently
in use. HUD proposes that public housing authorities be funded ``based
on the amount public housing agencies were eligible to receive in
calendar year 2008 and by applying the 2009 annual adjustment factor.''
This budget based approach does not account for significant changes in
local housing markets, nor does it reward housing authorities for
improved utilization costs. Funding for the housing choice voucher
program should continue to be funded by using actual leasing and cost
data, as it has for the past two funding cycles. Even though HUD and
OMB recognize the voucher program as one of the most effective
Government programs, this proposed budget does not provide the full
funding required for continued success.
--CLPHA requests the Senate Appropriations fully fund the renewal of
the Tenant-Based Housing Choice Voucher program at the industry
requested level of $15.4 billion.
tenant protection vouchers
This year, the Tenant Protection account is cut from $200 million
in fiscal year 2008 to $150 million in fiscal year 2009. HUD claims
additional costs for tenant protection vouchers may be obtained by
using un-obligated balances from funds in the Housing Certificate Fund
or from Annual Contributions for Assisted Housing. HUD also proposes
removing the requirement that a tenant protection voucher be provided
for all units that were occupied in the previous 24 months that cease
to be available for occupancy. Here again, HUD will attempt to limit
affordable housing opportunities for low-income families.
--CLPHA requests the Senate Appropriations fully fund Tenant
Protection Vouchers in fiscal year 2009.
administrative fees
HUD proposes $1.4 billion for administrative fees in fiscal year
2009, a $49 million increase over fiscal year 2008. This amount is
insufficient. The fiscal year 2008 administrative fees were prorated at
86 percent so if they were fully funded, the fees would require over
$1.5 billion in fiscal year 2009.
--CLPHA requests the Senate Appropriations fully fund Administrative
Fees at the industry recommended level of $1.54 billion.
safety and security
Since 2002, the administration's budget provides no specific
funding for safety and security in public housing through the Public
Housing Drug Elimination Program (PHDEP). It fails to see the
widespread, positive impact the program has gained and its strong
support from PHAs, residents, local law enforcement and other concerned
parties. Since PHDEP's termination, housing authorities have had to use
their already scarce operating subsidies to combat crime and drugs, and
ensure safety in their units.
--CLPHA requests the Senate Appropriations fully fund Safety and
Security at the industry recommended level of $310 million.
resident opportunity services
For fiscal year 2009, the administration recommends $38 million for
supportive services, service coordinators, and congregate services.
This is a $2 million reduction from fiscal year 2008 and is budgeted in
the Public Housing Capital Fund, which has the effect of further
reducing the total funding for capital needs. CLPHA strongly supports
and urges separate funding for the ROSS program in order to address the
critical, on-going need for supportive services among our most
vulnerable residents, including the elderly and persons with
disabilities.
--CLPHA requests the Senate Appropriations fully fund Resident
Opportunity Supportive Services as a separate program at the
industry recommended level of $55 million.
other set-asides
This year, HUD proposes $48 million for Family Self-Sufficiency
coordinators, $1 million less than the fiscal year 2008 appropriation.
HUD also proposes $39 million to prevent displacement of the elderly
and disabled families who receive assistance by the Disaster Assistance
Program, and $75 million for incremental vouchers administered in
conjunction with the Department of Veterans Affairs.
--CLPHA requests the Senate Appropriations fully fund Service
Coordinators for the Elderly and Disabled at the industry
recommended level of $50 million.
CLPHA members remain committed to providing quality housing and
management services in public housing. However, without adequate
funding, public housing authorities cannot ensure that housing is
properly maintained or needed services are available. Given increasing
housing costs and struggling housing markets across the country,
protecting and preserving public housing has proven ever more critical
to low-income families. We appreciate the opportunity to submit our
comments and public housing funding requests to the subcommittee. We
look forward to continuing to work with the subcommittee in our joint
efforts to advocate for, and deliver, safe and affordable public
housing to our Nation's most disadvantaged and vulnerable persons.
______
Prepared Statement of the American Association of Service Coordinators
(AASC)
The American Association of Service Coordinators (AASC) appreciates
the opportunity to share our views on the fiscal year 2009
appropriations for the Department of Housing and Urban Development
(HUD). While we have funding concerns with a number of programs
contained in the THUD fiscal year 2009 appropriations bill, we will
focus our comments on resources needed for the staffing of service
coordinators in federally assisted and public housing.
Service coordinators have helped thousands of low-income elderly,
persons with disabilities, and others with special needs to link with
community-based health and supportive services. While most local
communities may have available the various services needed, they are
highly fragmented, not well known, and/or have complexities that have
hindered easy access. By providing timely assistance, service
coordinators have enabled many frail and vulnerable older persons to
achieve their preference to remain in their home for as long as
possible. Without the benefit of service coordinators, many vulnerable
persons have been forced to move prematurely into more costly settings,
such as nursing homes.
Service coordinators in federally assisted housing are funded
through a number of sources, including national competitive grants
funded through the section 202 Elderly Housing Program. However, since
the service coordinator grant program was established there have been
insufficient funds available to enable service coordinators to be
staffed in most eligible federally assisted housing. Findings of a
recent HUD survey revealed that there are about 1,500 service
coordinators funded through the competitive grant program which
represents less than one-third of the more than 12,000 eligible housing
facilities. Current eligible facilities for these grants are those
funded with: section 202 without PRACs; HUD insured section 221d3, some
section 236s, and project based section 8 rent subsidies. In addition,
nearly 2,000 service coordinators are funded through project
operations, and over 200 service coordinators are funded through
project residual receipts and excess revenues. Unfortunately, many
facilities do not have sufficient funds to absorb service coordinators
into their operating budget; and it is very difficult to secure the
necessary rent increase to enable staffing as a routine part of the
operating budget.
In addition to federally assisted housing, there are 1.3 million
households living in public housing and almost half of all residents
are elderly or persons with disabilities, including more than 50,000
seniors age 83 and older. Service coordinators are needed not only to
assist frail elderly to remain in their home, but also to provide
assistance to many low-income families in public housing or using
Housing Choice Vouchers to become more self-sufficient and economically
independent through employment and homeownership. Service coordinators
have been funded to assist public housing residents through short-term
competitive grants with the Resident Opportunities and Self-Sufficiency
program (ROSS), the Housing Choice Vouchers Family Self-Sufficiency
(HCV-FSS) program; or through public housing Operating Funds.
Unfortunately, over the past few years there have been significant cuts
and shortfalls in Federal funds needed for the sound operation of
public housing, including the routine staffing of service coordinators.
Despite the critical need and cost-effectiveness of service
coordinators in assisting frail and low-income elderly and others with
special needs to access supportive services or the need to assist
families to become more self-sufficient, funding for service
coordinators remains very limited. While the administration's fiscal
year 2009 budget provides a slight increase for service coordinators in
section 202 and other federally assisted senior housing, yet funding
for service coordinators in public housing remains essentially flat.
AASC would urge the subcommittee's support for the following:
--$100 million in fiscal year 2009 for service coordinators in
federally assisted housing, particularly to ensure adequate
funds for expiring contracts of existing service coordinators;
--Full funding for section 8, Project Rental Assistance Contracts
(PRAC), other rent subsidies and project operating funds to
permit the staffing of a service coordinator as a routine part
of the project's operating budget;
--A separate add-on of $75 million in Public Housing Operating Funds
for service coordinators;
--$55 million for the Resident Opportunities for Self-Sufficiency
(ROSS) program; and
--$85 million for the Housing Choice Voucher Family Self-Sufficiency
Program.
federally assisted housing--$100 million
The administration's fiscal year 2009 budget requests $80 million
for service coordinators, an increase over the $71 million budget
requested in fiscal year 2008 and the $60 million appropriated as part
of the consolidated fiscal year 2008 appropriations bill enacted
December 26, 2007 (Public Law 110-161). Unfortunately, the $60 million
appropriated for fiscal year 2008 is insufficient even to extend
contracts of existing service coordinators; and will provide no funds
for any additional service coordinators. In fact, it is anticipated
that there will be no funds for service coordinators in the fiscal year
2008 Notice for Funds Available (NOFA) when it is issued (anticipated
by the end of April). This will be the first time since the service
coordinator grant program was established that no funds will be
available for additional service coordinators. In fiscal year 2007, HUD
awarded nearly $3.5 million for 21 grants in 11 States (2,064 units);
$12 million was provided in fiscal year 2006; and $30 million in fiscal
year 2002.
The shortfall of fiscal year 2008 appropriations for the staffing
of service coordinators in federally assisted senior housing has
contributed to several months delays in HUD allocation of fiscal year
2008 funds to extend existing contracts for service coordinators. In
order to extend all contracts, it is anticipated that HUD will make
proportional cuts to all existing contracts. This action may seem
equitable in sharing the shortfall; however, it may also have an
unintended consequence of reducing needed assistance to many low-
income, frail and vulnerable elderly and others with special needs and
jeopardize their well-being as a result of anticipated reduced hours
and capacity of existing service coordinator programs. While HUD may
allow service coordinators to be funded through project reserves or to
be incorporated into project operations; most federally assisted and
public housing facilities do not have sufficient resources in their
operating budgets to staff service coordinators. Given the shortages
for section 8, HAPs, PRACs and other operating funds and critical
competing needs, it is unlikely that projects will be able to secure
necessary rent increases to allow the staffing of service coordinators.
AASC would recommend several actions: first, there is a need for
$20 million in fiscal year 2008 supplemental funds in order to extend
contracts at full funding for existing service coordinators to ensure
there are no cuts in hours, elimination of service coordinator
positions, or cuts in quality assurance and other aspects of the
service coordinator program; second, to provide $100 million in fiscal
year 2009 for service coordinators in federally assisted housing to
ensure full funding with the renewal of existing contracts, as well as
to expand service coordinators in federally assisted housing for
elderly or persons with disabilities that currently do not have them
(two-thirds of eligible facilities do not have service coordinators);
and to expand eligibility for service coordinators to section 515 rural
housing and for Low-Income Housing Tax Credits (LIHTC) projects that
involve non-profit organizations.
There is also a need for a dual strategy for funding service
coordinators that includes maintaining the service coordinator grant
program, and also increasing the routine staffing of service
coordinators within the facility's operating budget. While statutory
authority exists to allow HUD to fund coordinators, many senior housing
facilities have not been able to secure the necessary rent adjustments
to accommodate them. AASC would recommend that sufficient section 8,
PRAC, or other operating funds be increased to allow routine staffing
of service coordinators, as well as to direct HUD and their field
offices to provide necessary budget adjustments and regulatory relief
to remove any barriers restricting the staffing of service coordinators
through the project's operating budget. There is also a need to expand
the funding for housing-based service coordinator to assist frail
elderly in the facilities' surrounding community. While there is
existing statutory authority to enable service coordinators to assist
residents in the surrounding community, there are insufficient funds to
enable service coordinators to reach out to assist these surrounding
residents.
public housing: complexity and inadequate funds for service
coordinators
Elderly and other residents with special needs living in public
housing and those using Housing Choice Vouchers (HCV) have been denied
full access to the valuable and cost-effective assistance provided by
service coordinators. Over one-third of residents in public housing are
elderly residing in various settings such as senior housing, family
housing, and mixed-population housing with younger persons with
physical and mental disabilities. Unfortunately, funding for service
coordinators in public housing is very limited, complex, and has
experienced a steady reduction in funds over the past few years, both
with specific grant programs for service coordinators, as well as with
the public housing operating budget.
A number of local housing authorities have funded service
coordinators through competitive short-term grant programs, such as
those under the Resident Opportunities and Self-Sufficiency (ROSS) or
Family Self-Sufficiency (FSS) programs. Unfortunately, over the past
few years, there have been funding cuts and a lack of program
consistency contributing to disincentives for PHAs to participate in
these grant programs. For example, the Elderly and Persons with
Disabilities Service Coordinator program (EDSC) funded at over $15
million as part of the ROSS program was shifted to the Public Housing
Operating Fund, but with no additional funds. Therefore, coordinators
that once were funded through the EDSC program now need to compete with
other funding priorities and are subjected to the same proportional
cuts with Public Housing Operating Funds. Because of funding cuts in
their operating budgets and other competing needs, a number of public
housing authorities have been forced to lay-off or reduce their service
coordinator program. Service Coordinators have also been essential in
facilities that have a mix of older residents and non-elderly persons
with disabilities. Therefore, it is necessary to ensure that there are
adequate funds available in the fiscal year 2009 Public Housing
Operating funds to accommodate service coordinators. AASC recommends
that $85 million be provided as a separate add-on to Public Housing
Operating Funds to ensure that PHAs can include service coordinators as
a routine part of their operating budget.
resident opportunities and self sufficiency (ross)--$55 million
The Resident Opportunities and Self Sufficiency (ROSS) program
provides grants to public housing agencies, tribal housing entities,
resident associations, and nonprofit organizations for the delivery and
coordination of supportive services and other activities designed to
help public and Indian housing residents attain economic and housing
self-sufficiency. There are several separate programs within the ROSS
program that were appropriated at $40 million in fiscal year 2008,
including: (1) Family and Homeownership ($33.4 million funded in fiscal
year 2007), (2) Elderly and Persons with Disabilities ($16.6 million
funded in fiscal year 2007; and (3) Public Housing Family Self-
Sufficiency ($12 million in fiscal year 2007 NOFA). Despite the
demonstrated need and effective results, the administration's fiscal
year 2009 budget seeks $37.6 million for these three ROSS programs, and
no additional funds for Neighborhood Networks (funded earlier at $15
million), a slight reduction from the $40 million appropriated in
fiscal year 2008. AASC recommends that ROSS be funded at $55 million,
as it had been prior to fiscal year 2005.
housing choice voucher/family self-sufficiency (hcv/fss)--$85 million
The HCV/FSS program allows participants in the section 8 Housing
Choice Voucher program to increase their earned income, reduce or
eliminate their need for welfare assistance, and promote their economic
independence. Funds are used to provide for FSS program coordinators to
link participants with supportive services they need to achieve self-
sufficiency and to develop 5-year self-sufficiency plans. The HCV/FSS
program currently assists over 63,000 families and 8,300 families in
public housing. In fiscal year 2004, HUD made a number of changes in
the program that led to a number of technical errors and elimination of
nearly one-third of the existing grants. The administration's fiscal
year 2009 budget requests $48 million for HCV/FSS, slightly less than
the $49 million appropriated in fiscal year 2008 and essentially the
same since fiscal year 2005. AASC recommends $85 million for HCV/FSS
funding in order to restore funds to PHAs that were cut in fiscal year
2004 and to expand the number of FSS participants. In addition, we
support administrative changes for up-front funding of HCV/FSS escrow
accounts, and to streamline the staffing of service coordinators.
conclusion
While we understand the difficult funding choices that the
subcommittee needs to make with limited resources, we would urge your
support for the funding of service coordinators as a cost-effective
means to assist the low-income elderly and other residents with special
needs and as a means to save public funds by promoting economic self-
sufficiency for low-income families and options for frail elderly to
delay or avoid premature admission into costly nursing homes.
______
Prepared Statement of Easter Seals
Chairman Murray, Ranking Member Bond and members of the
subcommittee, Easter Seals appreciates this opportunity to share the
successes of Easter Seals Project ACTION and the National Center on
Senior Transportation.
project action overview
Project ACTION was initiated during the appropriations process in
1988 by funding provided to the Federal Transit Administration to
undertake this effort with Easter Seals. We are indeed grateful for
that initiative and the ongoing strong support of this subcommittee in
subsequent years.
Following its initial round of appropriations, Congress authorized
assistance to Project ACTION in 1990 with the passage of ISTEA and
reauthorized the project in 1997 as part of TEA-21 and in 2005 as part
of SAFETEA-LU. The strong interest and support of all members of
Congress has been greatly appreciated by Easter Seals as it has pursued
Project ACTION's goals and objectives.
Since the project's inception, Easter Seals has administered the
project through a cooperative agreement with the Federal Transit
Administration. Through steadfast appropriations support, Easter Seals
Project ACTION has become the Nation's leading resource on accessible
public transportation for people with disabilities. The current project
authorization level is $3 million, and Easter Seals is pleased to
request the appropriation of that sum for fiscal year 2009.
The strength of Easter Seals Project ACTION is its continued
effectiveness in meeting the congressional mandate to work with both
the transit and disability communities to create solutions that improve
access to transportation for people with disabilities of all ages and
to assist transit providers in complying with transportation provisions
in the Americans with Disabilities Act (ADA).
national center on senior transportation overview
The National Center on Senior Transportation (NCST) was created in
SAFETEA-LU to increase the capacity and use of person-centered
transportation options that support community living for seniors in the
communities they choose throughout the United States. The center is
designed to meet the unique mobility needs of older adults and provide
technical assistance and support to older adults and transit providers.
The NCST is administered by Easter Seals in partnership with the
National Association of Area Agencies on Aging (N4A) and involves
several other partners including the National Association of State
Units on Aging, The Community Transportation Association of America,
The American Society on Aging, and The Beverly Foundation. The
Cooperative agreement forming the NCST was developed in August 2006 and
the Center was officially launched in January 2007.
The goals of the NCST are:
--Greater cooperation between the aging community and transportation
industry to increase the availability of more comprehensive,
accessible, safe and coordinated transportation services;
--Increased integration of provisions for transportation in community
living arrangements and long-term care for older adults;
--Enhanced capacity of public and private transportation providers to
meet the mobility needs of seniors through available,
accessible, safe and affordable transportation;
--Enhanced capacity of human service providers to help seniors and/or
caregivers individually plan, create and use appropriate
transportation alternatives;
--Increased knowledge about and independent use of community
transportation alternatives by seniors through outreach,
education and advocacy;
--Increased opportunities for older adults to obtain education and
support services to enable the individuals to participate in
local and State public and private transportation planning
processes.
The tools and resources being developed to achieve these goals
include:
--Technical assistance extended through cross-agency and public/
private collaboration to improve and increase mobility
management for older adults through new or existing local and
State coalitions;
--Technical assistance and other supportive services extended to
communities, seniors, transportation and professional agencies
and organizations, government, and individuals so they can
effectively address barriers and/or respond to opportunities
related to senior transportation;
--Creation and dissemination of products and training programs (e.g.,
brochures, workbooks, best-practice guides and self-
assessments) to help transportation providers, human service
agencies and older adults and their caregivers understand their
roles and/or opportunities for increasing senior mobility
options;
--Use of an 800-telephone line, website, visual exhibit, newsletters
and other communication tools;
--Implementation of communication strategies to increase the profile
of senior transportation on topics such as emerging best
practices, advances in public policy, success stories and more;
--Facilitation and testing of new ideas to increase and improve
community mobility for seniors through the administration and
management of demonstration projects.
In SAFETEA-LU, the NCST is authorized at $2 million for the first
year of the project and $1 million for years after that. Easter Seals
respectfully requests an appropriation of $3 million for the NCST in
fiscal 2009. The additional $2 million included above the authorized
level in this request would allow the center to fund local community's
efforts to demonstrate creative, unduplicated and effective solutions
to increasing mobility for older adults. This funding will allow us to
support local communities' efforts to put the tools and resources
developed by the NCST into practice.
highlighted activities of project action and the national center on
senior transportation during the last year
Both Project ACTION and the NCST are working at the State, local
and national level to achieve the goal of greater mobility for all
Americans. The past year has been an exciting one and the role of
Project ACTION and the NCST as productive, highly trustworthy,
innovative resources to the Federal Transit Administration has
continued to grow.
In late 2007, the NCST released an RFP to local communities to
undertake demonstration projects that will work creatively to meet the
transportation needs of older adults living in the community. More than
300 public, private and faith-based aging/human services and
transportation organizations from 46 states plus the District of
Columbia applied. Eight community organizations have been selected to
receive grants from the National Center on Senior Transportation. The
grants range from $35,000 to $90,000. The sites will also receive 24
months of tailored technical assistance. A panel of external reviewers
selected these organizations: Human Services Council, Vancouver, WA;
Jewish Family and Children's Services of Minneapolis, Minnetonka, MN;
Knoxville-Knox County Community Action Committee, Knoxville, TN;
Leslie, Knott, Letcher Perry Community Action Council, Inc., Jeff, KY;
Meadowlink Commuter Services, Rutherford, NJ; Mid County Senior
Services, Newtown Square, PA; Southwest Michigan Planning Commission,
Benton Harbor, MI; ACCESS Transportation System, Pittsburg, PA.
A highly promising new tool that both Project ACTION and the NCST
are accessing to achieve their missions is distance learning. Distance
learning has proven to be a highly effective method to reach an
exponentially greater number of stakeholders to educate and inform them
about activities that will increase the mobility of older adults and
people with disabilities. For instance, over 800 people have
participated in technical training offered by Project ACTION and the
NCST with approximately 120 people signing up for each event on
average. This has allowed approximately 5 times as many people to be
trained by project staff. The experience has been so positive that the
FTA has requested that the project triple their distance learning
activities over the next 3 years contingent on funding. An additional
training success was the presentation of the Project ACTION ``People on
the Move'' program in New Orleans, LA to help assure that
transportation options for people with disabilities were part of the
rebuilding efforts in that city. Project ACTION was also proud to
introduce a new course this year to increase the skills, knowledge and
abilities of travel training professionals. Within 3 months following
each of these three trainings being offered this year, participants
will submit a report detailing how they used the curriculum materials
to train people with disabilities to use public transportation, improve
policies and practices, educate colleagues and increase their own
knowledge.
Both projects have also instituted an on-line technical assistance
tracking process that will help identify geographic and issue area
trends in our technical assistance efforts so that broader training and
technical assistance tools can be targeted at specific needs.
There are currently three ongoing studies that will result in new
tools being added to the resource clearinghouse for both projects. The
first is in the area of accessible taxi service and is critical to
meeting the needs of both older adults and people with disabilities,
particularly in rural areas. The other two are in the areas of bus stop
accessibility and accessible pathways. In addition Project ACTION just
released a report on wheelchair mobility that addresses the growing
need to address larger wheelchairs in vehicles.
fiscal 2009 request
In order to continue the outstanding work of Easter Seals Project
ACTION and the NCST, Easter Seals respectfully requests that $3 million
be allocated for Project ACTION and $3 million be allocated for the
National Center on Senior Transportation in fiscal 2009 to the
Department of Transportation for project activities.
Mr. Chairman, thank you for the opportunity to present this
testimony to the subcommittee. Your efforts have improved the
accessibility of transportation for persons with disabilities and older
adults and the ability of the transportation community to provide good
service to all Americans. Easter Seals looks forward to continuing to
work with you toward the pursuit of these objectives.
______
Prepared Statement of the National Association of Railroad Passengers
The National Association of Railroad Passengers strongly supports
$1.785 billion as a minimum appropriation for Amtrak for fiscal year
2009 in the absence of a responsible request by the Bush
administration. There are two caveats below regarding rolling stock and
infrastructure (sections II and IV) which justify additional funding.
Looking forward, we strongly urge the next Congress and
administration to take seriously the $9 billion a year recommendation
of intercity passenger train investments contained in the report of the
National Surface Transportation Policy and Revenue Study Commission.
strong ridership growth
Americans are turning to trains. Demand for all types of services
is growing rapidly--long distance, corridor, commuter rail and local
transit. At Amtrak, ridership for the first 6 months of fiscal year
2008 (October-March) was up 12 percent compared with the same period of
fiscal year 2007. And ridership for all of fiscal year 2007, which
Amtrak said marked ``the fifth straight year of gains,'' was 6.3
percent higher than in fiscal year 2006.
Sold-out trains on Amtrak means we don't have enough capacity to
meet current demand, and certainly not the larger demand that is likely
in the future as more people seek alternatives to high and rising
gasoline prices and airline fares. As explained below, from a public
policy standpoint, the increased popularity of energy-efficient trains
is good.
how to keep ridership growing
Amtrak has about 100 cars that need repairs before they can be
returned to service. The fiscal year 2008 budget apparently would
accomplish very little in this regard. Similarly, it appears that
little could be accomplished within what Amtrak has requested for
fiscal year 2009, since they are showing a significant drop in capital
spending on both ``passenger cars'' and ``locomotives.'' Passenger cars
would drop $40.1 million or 22.5 percent, from $178.0 million this year
to $137.9 million next year.
This issue also is complicated by the fact that, as a result of
leaseback deals in the pre-Gunn years, Amtrak does not own many of
``its'' cars and the law, as we understand it, prohibits Amtrak's use
of capital dollars to repair such cars.
With passenger demand already exceeding what Amtrak can supply
today, we urge the subcommittee to sort through the above and take the
necessary steps to maximize the number of cars Amtrak can operate,
including--if needed for this purpose--adding additional funding.
New Equipment.--We appreciate that Amtrak is working on developing
a program to secure new equipment in cooperation with the States, and
is working with them to standardize equipment design as much as
possible. However, we are concerned at the lack of action with regard
to equipment for the national network (long-distance) trains, where
demand also is strong and growing, and cars also are aging. It is
essential that the Federal funds become available to move both of these
programs forward; with States partnering on ``State corridors''
equipment.
state grant program
The Association appreciates the fact that, for the first time,
Federal funds are available to match State investments for intercity
passenger trains, and not just as a by-product of commuter rail or
intermodal terminal programs. The $30 million approved for fiscal 2008
is significant as a start; we urge the subcommittee to expand this
program as rapidly as possible--and not at the expense of Amtrak
funding--ideally at $100 million in fiscal year 2009, and including a 5
percent set-aside for education and outreach.
service reliability
While some on-time performance issues result from problems with
railroad operating practices, substantial delays also are caused by
genuine track capacity issues. One of the biggest problems involves the
Norfolk Southern mainline between Porter, Indiana, 26 miles east of the
Illinois State line, and Chicago. This segment handles Amtrak's five
daily Michigan round-trips as well as Amtrak's four Chicago-Cleveland
trains (Lake Shore Limited serving New York State, New York City and
Boston; Capitol Limited serving Pittsburgh and Washington).
Paralleling this mainline is the abandoned former New York Central
right-of-way (and associated drawbridges, still in place). Putting this
back into service would improve both passenger and freight operations.
This is one major example of the sorts of projects that could blossom
under an adequately funded Federal program to jointly fund railroad
projects with States.
it is sound public policy to support trains
Fuel efficiency offers the most immediate and biggest potential for
reducing CO2 emissions from transportation over the next 3
decades, partly because we are so far from developing radically
advanced, low-carbon technologies to replace oil-based transportation
energy. The emissions reduction policy measure that will have the most
immediate impact is the one that will make greater use of the most
fuel/carbon efficient forms of transportation.
It is in that context that we present the most recent data from the
annual Transportation Energy Data Book (Edition 26, released in 2007),
published by Oak Ridge National Laboratory, under contract to the U.S.
Department of Energy. The following table shows 2005 data; the five
modes shown are listed from most to least energy efficient:
------------------------------------------------------------------------
BTUs per psgr-
Mode mile \1
\\------------------------------------------------------------------------
Amtrak.................................................. 2,709
Commuter trains......................................... 2,743
Certificated air carriers............................... 3,254
Cars.................................................... 3,445
Light trucks (2-axle, 4-tire)........................... 7,652
------------------------------------------------------------------------
\1\ BTU = British Thermal Unit; passenger-mile = one passenger traveling
one mile.
The aviation figure shown above is straight energy consumption; no
multiplier is added although there is evidence that ``radiative
forcing'' increases the negative environmental impacts of high altitude
emissions.
hudson river tunnels
One other geographically specific project demands comment: the
current plan of New Jersey Transit to build two tunnels under the
Hudson River which would not connect with existing New York Penn
Station and which would lead to a dead-end, deep cavern station so far
under 34th Street as to render questionable the ability to extend
tracks to Grand Central. Moreover, we understand that the tunnels are
designed in a way that prohibits additional intercity capacity in the
future.
We cannot support or justify a $7.6 billion expenditure on new
tunnels that, in 2017, will find existing Penn Station and all
intercity service under the Hudson just as dependent as today on two
century-old tunnels. Moreover, these new tunnels will block future
investments to expand intercity capacity, violating a basic rule: do no
harm. As we have testified to New Jersey Transit and written to the
Governors of New York and New Jersey, it is inconceivable that the
continent's strongest market opportunity for rail to ameliorate
aviation congestion could remain one incident away from rail paralysis.
Even without an incident that closes those tunnels for any length of
time, basic track maintenance needs are increasingly in conflict with
growing demand for both commuter and intercity weekend services.
back pay
Our $1.785 billion request includes both the $1.671 billion that
Amtrak formally requested and the additional $114 million to fulfill
the new contracts.
The alternative approach of relying on an end-of-year cash balance
to cover the $114 million would be unwise because the remaining cash on
hand would be inadequate for responsible management of a $3+ billion
corporation like Amtrak. While it is unfortunate that Amtrak did not
forthrightly request the $114 million, we agree that the board arguably
would be failing in its fiduciary responsibility to recommend
``swallowing'' the $114 million. As Alex Kummant testified before your
subcommittee on April 3, ``it's early to project end-of-year cash. Last
year, we came within 3 weeks of running out of cash by the time we got
our first grant in February.''
work rules
We have supported reasonable efforts to improve productivity,
believing that such efforts will facilitate service expansion that
provides services travelers need while increasing the number of good
jobs on and related to passenger trains. It is widely known that the
PEB ``does not recommend any of Amtrak's requested changes.'' However,
rail labor submissions to the PEB noted that Amtrak can increase
productivity within the scope of existing contracts. Also, the new
contracts become amendable in just over 19 months which leaves room for
hope that all parties, informed by the recent process, can approach the
issue more effectively.
______
Prepared Statement of the Railway Supply Institute, Inc.
Dear Mr. Chairman, the Railway Supply Institute (RSI) appreciates
the opportunity to provide this subcommittee with our views on
important transportation funding policy.
Established in 1908, RSI is the international association of
suppliers to the Nation's freight, passenger rail systems, and rail
transit authorities. The domestic railway supply industry is a $20
billion a year business with some 500 companies employing 150,000
people. Approximately 25 percent of sales involve Amtrak, commuter
railroads and transit authorities. A strong national freight and
passenger rail system will not only continue to sustain good paying
domestic jobs but will lead to future job creation as well.
RSI supports both our Nation's freight and passenger rail
operations. Today we will focus on passenger rail service.
Unfortunately, in our view, our transportation policy places entirely
too much emphasis on those modes of transportation that have the
inverse effect on the issues mentioned above.
We need a strong, national railroad passenger system that
contributes to reducing dependence on foreign oil; reducing carbon
emissions into the atmosphere; reducing congestion on our highways;
improving transportation safety; reducing airport congestion; and that
will enhance our ability to move vast numbers of people in emergency
evacuation situations (i.e. 9/11, Katrina, etc).
As representatives of those who supply our Nation's railroad
industry, we submit that a more balanced national transportation policy
that places more emphasis on rail will significantly contribute to
meeting our Nation's stated policy objectives that are designed to make
this Nation stronger.
That is why we urge this subcommittee to reject the
administration's proposed cuts in rail passenger service and support
Amtrak's fiscal year 2009 appropriation request of $1.671 billion.
However, if policy makers are truly serious about achieving the above
stated objectives, then we need to do much more than just allowing
Amtrak to survive on a year to year basis. And, certainly get away from
the annual starvation budget for rail passenger service.
Last August, the Wall Street Journal wrote that just the increase
in ridership alone on the Acela's on Amtrak's Northeast Corridor was
``enough new passengers to fill 2,000 Boeing 757 jets''. Just imagine
running more corridor operations that would do more of that and the
impact that could have on fuel consumption and carbon emissions. Amtrak
needs more equipment and investment in railroad infrastructure so it
can expand capacity allowing it to move more people by rail. By doing
that, it will help reduce short distance flights and auto trips.
At a time when we are considering capping air traffic in some of
our busiest airports, wouldn't it make more sense to have a Federal
policy that encourages the development of rail corridors that will
reduce the need for short distance air travel and free up valuable air
slots at airports? Such a policy would not only reduce airport
congestion but would aide in reducing fuel consumption.
In addition:
--Air transportation produces significant levels of CO2.
Air emissions effects are greater at high altitudes.
--Airliner fuel use triples during the takeoff climb, and sometimes
in descent, making short distance trips inefficient and adding
unnecessarily to airport congestion.
--Rail travel could efficiently replace short distance air travel and
longer distance highway trips, while reducing greenhouse gas
emissions if we had a policy that encouraged more rail
passenger corridor development.
Former airline executives, (Gordon Bethune-Continental/Robert
Crandall-American) have publicly stated that the United States should
do what governments in Europe and Asia have long done--building high
speed rail lines for short distance travelers and freeing up runway
space for long distance flights. States all over this country are
interested in adopting policies that reward and encourage energy
efficient, low-emissions transportation modes like passenger rail and
corridor development. The Federal Government needs to be a partner with
those States.
Mr. Chairman, we are here to urge you and the members of this
subcommittee to focus your attention on the benefits of rail passenger
service and, perhaps, even follow some of the recommendations of the
National Surface Transportation Commission which clearly states that
``intercity passenger rail is . . . more energy efficient than many
other modes of passenger transportation.'' That same report goes on to
say that the average intercity passenger rail train produces 60 percent
lower carbon dioxide emission per passenger mile than the average auto,
and half the carbon dioxide emission per passenger mile of an airplane.
These facts suggest that Federal transportation policy should do
more to develop those modes of transportation that we already know are
efficient. Perhaps our policy should measure the value of rail
passenger service in a way that will reflect its overall value and
enhance other policy objectives rather than only measuring the pure
cost of the service as we do today.
Instead of measuring the ``loss-per-passenger-mile'' on Amtrak
trains maybe this subcommittee should entertain other measures like
``carbon emission reduction per-passenger-mile'' or ``reduction in
VMT'' (vehicle miles traveled).
Why not require a Fuel Efficient/Carbon Emission Impact Statement
similar to the Environmental Impact Statement that will give
transportation policy makers a different measurement tool that will
actually help to gage the progress (or lack of it) in reducing fuel
consumption and carbon emissions.
Above all, we would urge the subcommittee and Congress to provide
full funding for Amtrak and to resist micro-managing their activities.
If Congress wants Amtrak to operate more like a business, it should
treat it like a business and have an arms-length relationship allowing
the Board of Directors to be responsible for setting management
objectives.
Clearly there are things Amtrak can do to be more efficient but
dictating operational reforms for specific on-board services or a
marketing strategy should be left to the Board of Directors and its
management oversight and not spelled out in statutory language. Allow
the Amtrak Board to be responsible and accountable for the actions of
the corporation. The whole purpose for having a Board of Directors is
to provide management with a general direction and hold management to
the policies it sets.
Once Congress begins to dictate policies to management, it becomes
part of the problem. We believe that the appropriate role of Congress
should be to make policy, provide funding, and engage in oversight. The
Appropriations Committees have a responsibility to work in the best
interests of the Nation, making funding decisions that can set the
foundation for a strong economy and a brighter future for all
Americans. Support for rail passenger service is part of the solution
for many of our Nation's concerns over congestion and pollution.
We applaud the subcommittee for its wisdom in providing the initial
funding for the Intercity Passenger Rail Grant Program last year. In
addition, Federal Railroad Administrator Joseph Boardman deserves
credit for proposing this concept and for recommending an additional
$100 million to expand the current program to assist the States in
being more aggressive in improving intercity rail passenger service.
This is one of those areas where Amtrak, the States, Congress and the
administration can all agree needs to move forward and we hope this
subcommittee will do its best to fully fund this proposal.
Your continued support for rail passenger service is good public
policy and good for the Nation.
Thank you for the opportunity to present our views.
______
Prepared Statement of Foothill Transit
Mr. Chairman and members of the subcommittee, my name is Doran
Barnes and I serve as the Executive Director of Foothill Transit in
West Covina, California. Thank you very much for the opportunity to
submit testimony to this subcommittee.
Mr. Chairman, I recognize the difficult tasks before this
subcommittee and commend your leadership in determining the allocation
of available transportation resources during this congressional budget
period. We are very appreciative of the strong support provided to
Foothill Transit by this subcommittee over the past 13 years. The
support of this subcommittee has enabled Foothill Transit to construct
two operating and maintenance facilities and to initiate replacement of
our aging bus fleet with new compressed natural gas coaches, as well as
to embark upon providing commuter parking to encourage transit
ridership. These initiatives have greatly enhanced our service to our
riders, and continue to do so.
why this bus capital request?
Thanks to the unwavering support of our Congressional delegation,
Foothill Transit has been extremely successful in achieving its capital
goals. Our fiscal year 2009 funding request is for $5 million in
Discretionary Bus Capital funding to assist Foothill Transit in our
aggressive efforts to continue the conversion of our entire 314-bus
fleet to cleaner burning compressed natural gas (CNG) buses. To date,
Foothill Transit's fleet consists of 232 CNG buses and 82 diesel buses.
The funds requested here would be utilized for the purchase of both 40-
foot buses, and additional 60-foot articulated buses to add to the new
``Silver Streak'' service just introduced in March 2007. This
successful new service includes 58-passenger buses which board faster,
save riders substantial commuting time, have state-of-the-art safety
features, and offer onboard WiFi (Internet) service.
The conversion of transit fleets to alternative fuel sources
multiplies the benefits that transit service already contributes to our
national energy conservation goals. The Federal Government has
recognized the importance of such energy-saving initiatives by
providing Federal matching funds and incentives to assist local
agencies, such as Foothill Transit, with the procurement of alternative
fuel buses.
The agency's Pomona Operations Yard is now running a 100 percent
CNG fleet with 170 buses. Diesel fueling infrastructure has been
dismantled at this yard as the use of diesel fuel buses has been phased
out at this facility.
Foothill Transit's Arcadia/Irwindale Operations Yard runs the
remaining 144 buses, with the goal of converting to a cleaner burning
CNG facility as soon as possible. This funding request will enable the
retirement of a portion of the older diesel-fueled vehicles and advance
the ``green'' goals of the agency, furthering its role in improving
regional air quality through the cleaner fuel technologies and
congestion reduction in Los Angeles County.
Since its introduction in March 2007, the Silver Streak service
mentioned above has become a great success. The service saves riders
approximately 40 minutes of commute time from one end of the county to
the other. Ridership has increased rapidly since its inception and has
improved overall system access on connecting lines. This funding, if
approved, will enable the purchase of an additional 10 60-foot CNG
``articulated'' buses, as well as additional 40-foot CNG buses.
about foothill transit
Foothill Transit was created in 1987 as an experiment to determine
the effectiveness of competitively bidding for transit service
operations. A public/private partnership, Foothill Transit is governed
by an elected board comprised of mayors and council members
representing the 21 cities and 3 appointees from the County of Los
Angeles who are members of a Joint Exercise of Powers Authority. The
agency provides public transit service over a 327-square-mile service
area. Foothill Transit is one of the best investments of taxpayer
dollars in these times of limited funds.
Foothill Transit has established a reputation of providing
outstanding customer service. In five separate customer surveys,
Foothill Transit drivers have consistently received ratings above
average or greater by more than 805 of our customers. Customers also
rate Foothill Transit buses very highly on their cleanliness, comfort
and graffiti-free appearance.
Foothill Transit was initially established as a 3-year experiment
to operate 14 bus lines at least 25 percent more effectively than the
former Southern California Rapid Transit District (now Metro), with
those savings to be passed on to the community through increased
service and/or lower fares. A 3-year evaluation completed by Ernst &
Young in 1995 showed that Foothill Transit's public/private structure
resulted in cost savings of 43 percent per revenue hour over the
previous provider.
Recognized by Congress in 1996 as a ``national model,'' the
combination of public accountability and private sector efficiencies
has allowed Foothill Transit to hold costs constant since its inception
in 1987, while increasing ridership by 77 percent and more than
doubling the amount of service on the street.
Foothill Transit has no employees. All management and operation of
Foothill Transit service is provided through competitive procurement
practices. The Foothill Executive Board has retained my employer,
Veolia Transportation, to provide the day-to-day management and
administration of the agency. The management contractor oversees the
maintenance and operation contractors to ensure adherence to Foothill
Transit's strict quality standards. We currently have two operating
contracts, with First Transit at our Pomona facility, and MV
Transportation at our Arcadia/Irwindale facility.
Mr. Chairman, thank you for the opportunity to provide testimony
and for your consideration of this request. Please feel free to contact
me with any questions you may have or if I can be of any assistance.
______
Prepared Statement of the Illinois Department of Transportation
Madam Chairwoman and members of the subcommittee, we appreciate the
opportunity to submit testimony concerning the fiscal year 2009 U.S.
Department of Transportation (U.S. DOT) appropriations on behalf of the
Illinois Department of Transportation (IDOT) to the Senate
Appropriations Subcommittee on Transportation and Housing and Urban
Development, and Related Agencies. We thank Chairwoman Patty Murray and
the members of the subcommittee for their past support of a strong
Federal transportation program and for taking into consideration
Illinois' unique needs.
IDOT is responsible for the planning, construction, maintenance and
coordination of highways, public transit, aviation, intercity passenger
rail and freight rail systems in the State of Illinois. IDOT also
administers traffic safety programs. Our recommendations for overall
funding priorities and our requests for transportation funding for
projects of special interest to Illinois are discussed below.
highway
Highway Obligation Limitation
IDOT urges the subcommittee to set the obligation limitation for
highway and highway safety programs at no less than the guaranteed
SAFETEA-LU level of $41.2 billion for fiscal year 2009--the same
funding level approved in fiscal year 2008. As you are aware, these
guarantees/funding levels were also approved in both the House and
Senate fiscal year 2009 budget resolutions. Moreover, IDOT continues to
support the SAFETEA-LU guarantees and funding firewalls as do other
transportation advocates such as the American Association of State
Highway and Transportation Officials (AASHTO) and the American Road and
Transportation Builders Association (ARTBA).
IDOT is aware of the implications of supporting increased
transportation funding when the long-term viability of the trust fund
is in question. However, IDOT is responsible for securing the Federal
funding that is needed to address the immediate highway and bridge
deficiencies in Illinois and to preserve Illinois' transportation
system for succeeding generations. To paraphrase the recent findings of
the National Surface Transportation Policy and Revenue Study
Commission, the consequences of inaction, at any level, will lead to
further deterioration of the Nation's transportation system assets.
Rescission of Unobligated Highway Apportionments
IDOT urges the subcommittee to suspend its practice of rescinding
unobligated highway apportionments. Since fiscal year 2002, Congress
has enacted language requiring Illinois to rescind a total of $466
million in unobligated apportionments. Rescissions undermine the
SAFETEA-LU principles of guaranteed funding and budgetary firewalls by
withdrawing promised Federal funding to offset increased non-
transportation funding in other areas of the budget. The accumulated
impact of numerous rescissions since fiscal year 2002 has exacted
burdensome programmatic consequences. With large-scale rescissions,
such as the one implemented in fiscal year 2008 for $3.15 billion,
States have less flexibility to shift funding toward unique State needs
and to meet individual highway program priorities. Moreover, State
transportation departments are being pressured by various
transportation interests to make rescissions based on that group's
particular preference.
Lastly, the members of the Senate Appropriations Committee should
be reminded that the $8.6 billion rescission enacted in SAFETEA-LU,
which becomes effective on the last day of the bill, represents a 22
percent reduction of the estimated $38.3 billion to be apportioned to
the States in fiscal year 2009. Illinois' share of the fiscal year 2009
rescission is estimated in the range of $285 million to $300 million.
Funding Requests for Meritorious Projects
If the subcommittee finds the flexibility to fund meritorious
projects in existing discretionary SAFETEA-LU categories or outside the
authorized categories, IDOT requests funding for the following projects
(noted throughout the testimony) for highway, Intelligent
Transportation Systems (ITS), transit and rail funding:
--Rehabilitation of Congress Parkway Bridge.--IDOT requests $20
million for rehabilitation and construction of the bridge,
which crosses the South Branch of the Chicago River, and is
currently classified as structurally deficient.
--New Mississippi River Bridge.--IDOT requests $9.6 million for the
land acquisition required for the construction of a new eight-
lane Mississippi River Bridge in the St. Louis, Missouri and
East St. Louis, Illinois area.
--Remote Control Bridge Monitoring for Des Plaines River.--IDOT
requests $6 million to provide automated remote monitoring and
control for a group of six movable bridges crossing the Des
Plaines River in the Joliet region.
Other IDOT Highway Priorities Include.--$20.5 million for expansion
of US 51 between Decatur and Centralia; $62.5 million for expansion of
US 67 between Macomb and Alton; $10 million for I-39/I-90 Interchange
Reconstruction in Rockford; and $12.6 million for development of an
east-west IL Route 120 Corridor.
Other IDOT ITS Priorities Include.--$6 million for a traffic
surveillance system for I-80; $2 million for dynamic message signs at
the I-39/I-80 Interchange; $1.5 million for I-270 fiber network and
other ITS devices; $6 million for a traffic surveillance system for I-
55; and $9 million for Vehicle Infrastructure Integration along Route
66.
transit
Transit Obligation Limitation
IDOT urges the subcommittee to set the obligation limitation for
transit programs at the guaranteed SAFETEA-LU level in fiscal year 2009
at $10.4 billion.
--Bus and Bus Facilities.--IDOT and the Illinois Public
Transportation Association jointly request a Federal earmark of
$30 million ($6.1 million for downstate bus and $23.9 million
for downstate facilities) in fiscal year 2009 section 5309 bus
capital funds for downstate Illinois.
The request will provide $6.1 million for downstate Illinois
transit systems to purchase up to 43 buses and paratransit vehicles to
replace overage vehicles and to comply with Federal mandates under the
Americans with Disabilities Act. All of the vehicles scheduled for
replacement are at or well beyond their design life. The request will
also provide $23.9 million to Illinois to undertake engineering, land
acquisition or construction for eight maintenance facilities and two
transfer facilities that will enhance efficient operation of transit
services.
Illinois transit systems need discretionary bus capital funds.
Regular formula funding is inadequate to meet all bus capital needs.
IDOT believes that Illinois' needs justify a much larger amount of
discretionary bus funds than the State has received in recent years.
Under SAFETEA-LU, Illinois is expected to receive approximately 6.5
percent of the needs-based formula funds but Illinois has only received
between 1 percent and 3 percent of appropriated bus capital funds in
the past.
New Systems and Extensions--Chicago Transit Authority (CTA)
IDOT supports the CTA's request for an earmark totaling $30.5
million in New Starts funding to assist in upgrading the Ravenswood
Brown Line. The match for these funds has been provided by IDOT.
The funding requested for upgrading the Ravenswood Brown Line would
continue construction to extend station platforms to handle longer
trains that are needed to serve the increasing demand along this line.
Lengthening all platforms to handle longer, 8-car trains, straightening
tight S-curves that slow operations and selected yard improvements will
increase capacity by 25 to 30 percent. The CTA is seeking $30.5 million
in New Starts funds for fiscal year 2009. A Full Funding Grant
Agreement for $245.5 million was executed in January 2004 for the
project.
New Systems and Extensions--MetroLink
IDOT supports the Bi-State Development Agency's request for a
Federal earmark of $50 million in fiscal year 2009 New Starts funding
for extending the MetroLink light rail system in St. Clair County from
Scott Air Force Base to MidAmerica Airport. The MetroLink system serves
the St. Louis region in both Illinois and Missouri. MetroLink service
has been a tremendous success and ridership has far exceeded
projections.
Formula Grants
IDOT urges the subcommittee to set appropriations for transit
formula grant programs at levels that will allow full use of the
anticipated Mass Transit Account revenues. IDOT also supports utilizing
general funds to supplement transit needs.
In Illinois, Urbanized Area formula funds (section 5307) are
distributed to the Regional Transportation Authority and its three
service boards which provide approximately 600 million passenger trips
per year. Downstate urbanized formula funds are distributed to 14
urbanized areas which provide approximately 30 million passenger trips
per year.
The Rural and Small Urban formula funds (section 5311) play a vital
role in meeting mobility needs in Illinois' small cities and rural
areas. IDOT urges the subcommittee to fully fund section 5311 at the
SAFETEA-LU authorized level. With section 5311 funding increases
already authorized in SAFETEA-LU, Illinois is in the process of
expanding service into 24 counties not currently served.
Any decrease in Federal funding below the SAFETEA-LU authorized
levels could jeopardize the much needed service expansion. In Illinois,
such systems operate in 60 counties and 11 small cities, carrying
approximately 2.9 million passengers annually.
rail
Amtrak Appropriation
IDOT supports Amtrak's grant request of $1.671 billion in funding
from general funds for fiscal year 2009 to cover capital, operating and
debt service costs. In addition, IDOT supports Amtrak's supplemental
request for $114 million to cover 60 percent of the labor settlement
amount (40 percent was funded within fiscal year 2008) determined by
the Presidential Emergency Board.
Amtrak needs the full amount of their request to maintain existing
nationwide operations. IDOT urges Congress to provide funds to continue
current service until it develops a new national rail passenger policy
and a clear plan for any changes to existing services as part of the
congressional reauthorization of Amtrak. Chicago is a hub for Amtrak
intercity service, and Amtrak operates 58 trains throughout Illinois as
part of the Nation's passenger rail system, serving approximately 3.6
million passengers annually. Of the total, Illinois subsidizes 28
State-sponsored trains which provide service in four corridors from
Chicago to Milwaukee, Quincy, St. Louis and Carbondale. Amtrak service
in key travel corridors is an important component of Illinois'
multimodal transportation network and continued Federal capital and
operating support is needed.
--CREATE Railroad Grand Crossing Connection.--IDOT requests $10
million in fiscal year 2009 for design and construction of a
railroad connection between the CN and Norfolk Southern
Railroads at 75th Street in Chicago--also know as the Grand
Crossing.
--Passenger Rail-Freight Congestion Relief.--IDOT requests $1 million
in fiscal year 2009 for engineering and capital improvements to
relieve passenger and freight train congestion/delays on the
three State-supported downstate corridors.
aviation
Airport Improvement Program Obligation Limitation
IDOT supports a fiscal year 2009 Airport Improvement Program (AIP)
obligation limitation of $3.9 billion, thereby continuing the 4-year
VISION-100 pattern of increasing the obligation limitation each year by
$100 million. This level of funding is supported by the American
Association of Airport Executives and the National Association of State
Aviation Officials.
Adequate AIP funding remains especially important for Small, Non-
Hub, Non-primary, General Aviation and Reliever airports. While most
Large/Medium Hub airports have been able to raise substantial amounts
of funding with Passenger Facility Charges, the smaller airports are
very dependent on the Federal AIP program. Airports must continue to
make infrastructure improvements to safely and efficiently serve
existing air traffic and the rapidly growing passenger demand.
Despite challenges that include high fuel prices and concerns about
the economy, U.S. commercial aviation is on track to carry one billion
passengers by 2016, as predicted by the Federal Aviation Administration
in a recently released forecast for the period 2008-2025. In addition,
the most recent National Plan of Integrated Airport Systems (NPIAS)
report identified $41.2 billion in airport development needs over a 5-
year period (2007-2011), an annual average of $8.2 billion. Lower AIP
obligation levels translate into less Federal funds for airport
projects, thereby exacerbating the existing capital project funding
shortfall.
Essential Air Service Program (EAS).--IDOT supports an EAS program
funded at a level that will enable the continuation of service at all
current Illinois EAS points. Several Illinois airports, Decatur,
Marion/Herrin and Quincy, currently receive annual EAS subsidies.
Small Community Air Service Program.--IDOT supports funding for the
Small Community Air Service Development Program in fiscal year 2009, at
a level of no less than at the full authorized fiscal year 2008 level
of $35 million. Illinois airports have received funding from this
program in the past.
Other IDOT Non-Modal Priorities
Resource Center for Disadvantaged Business/Minorities/Women.--IDOT
requests $450,000 for an IDOT resource center for disadvantaged,
minority and women owned businesses aimed at increasing participation
on all IDOT projects as well as CREATE.
Height Modernization.--IDOT requests $3.5 million to establish a
Height Modernization (HM) program in Illinois. This will be requested
through the Appropriations Subcommittee on Science, State, Justice,
Commerce and Related Agencies.
Finally, should Congress develop a second stimulus package IDOT
would support the inclusion of an infrastructure component. IDOT has
identified approximately 295 highway, transit, rail and aviation
projects at a value of $2.5 billion that would be ready-to-go in a
short timeframe to not only stimulate the economy by creating good
paying jobs, but provide long-term improvements to our transportation
infrastructure.
This concludes my testimony. I understand the difficulty you face
trying to provide needed increases in transportation funding. However,
an adequate and well-maintained transportation system is critical to
the Nation's economic prosperity and future growth. Your ongoing
recognition of that fact and your support for the Nation's
transportation needs are much appreciated. Again, thank you for the
opportunity to discuss Illinois' Federal transportation funding
concerns.