From: "Friends of Transit" To: Subject: Fw: TEA 21 update Date: Friday, June 11, 2004 9:29 AM NAPTA Update - June 9, 2004 From: NAPTA Co-Chairs David Schwartz and Amanda Eichelkraut Legislative Updates Congress rejoins TEA 21 Reauthorization debate Great News! Conferees have been appointed for the TEA-21 reauthorization bill. This presents the opportunity to really advance the bill: we're within striking distance of getting something passed. Your voice is needed now! By way of background, Congress reconvened after the Memorial Day Work Period and has resumed negotiations on the upcoming conference on TEA 21 Reauthorization. The first meeting of the conference was scheduled for the afternoon of June 9th. The hold-up was presumably because some Representatives who are not on one of the transportation related committees are interested in participating in the conference. While it is possible that TEA 21 reauthorization will pass before the latest TEA 21 extension runs out on June 30th, conferees may have to deal with developing an extension as well. When the bill is finally discussed in conference, two things will be at issue: the final dollar amount of the bill and the struggle to get an equitable rate of return on gas tax contributions to each state. See the "review" article below for a round-up of reauthorization issues. Conferees Named Before Congress adjourned for the Memorial Day Work Period, the Senate chose 21 conferees, 11 Republicans, 9 Democrats and 1 Independent, to meet with unnamed House conferees to work out the differences between both legislative house's bills. In addition to members of the Senate Leadership, the Senate selected conferees based on their positions in the Senate Environmental & Public Works, Finance, Commerce Science & Transportation, Banking, and Budget Committees. The selected conference members are: Tom Daschle (D-SD) Harry Reid (D-NV) Bob Graham (D-FL) Joseph Lieberman (D-CT) Barbara Boxer (D-CA) Kent Conrad (D-ND) Max Baucus (D-MT) Ernest Hollings (D-SC) Paul Sarbanes (D-MD) James M. Jeffords (I-VT) Mitch McConnell (R-KY) Charles E. Grassley (R-IA) Orrin Hatch (R-UT) Don Nickles (R-OK) Trent Lott (R-MS) James M. Inhofe (R-OK) Christopher S. Bond (R-MO) John Warner (R-VA) George Voinovich (R-OH) John McCain (R-AZ) Richard C. Shelby (R-AL) The House selected their conferees on June 3rd, taking Members from Transportation & Infrastructure, Ways & Means, Budget, Education & Workforce, Energy & Commerce, Government Reform, Judiciary, Resources, Rules, and Science Committees: Bachus (R-AL) Ballenger (R-NC) Barton (R-TX) Beauprez (R-CO) Biggert (R-IL) Boehlert (R-NY) Coble (R-NC) Davis (R-VA) Delay (R-TX) Dreier (R-CA) Duncan (R-TN) Ehlers (R-MI) Gary Miller (R-CA) Gibbons (R-NV) Gilchrest (R-MD) Hoekstra (R-MI) LaTourette (R-OH) McCrery (R-LA) Mica (R-FL) Neugebarger (R-TX) Nussle (R-IA) Petri (R-WI) Pickering (R-MS) Pombo (R-CA) Rehberg (R-MT) Schrock (R-VA) Sensenbrenner (R-WI) Sessions (R-TX) Shays (R-CT) Smith (R-TX) Thomas (R-CA) Young (R-AK) Brown (D-FL) Conyers (D-MI) Costello (D-IL) DeFazio (D-OR) Dingell (D-MI) Filner (D-CA) Frost (D-TX) George Miller (D-CA) Gordon (D-TN) Johnson (D-TX) Kind (D-WI) Lipinski (D-IL) Menendez (D-NJ) Nadler (D-NY) Norton (D-DC) Oberstar (D-MN) Rahall (D-WV) Rangel (D-NY) Spratt (D-SC) Waxman (D-CA) FY05 Appropriations process begins to take shape House Appropriations Committee Chairman Bill Young released his committee's allocations for Fiscal Year 2005 which offered smaller increases than even the President's request. However, the Transportation-Treasury bill is the only one of the 13 annual spending bills which would see a decrease in funding, by about 10%. This potential vulnerability of transit (particularly general funds) in the appropriations process underscores the importance of securing TEA-21 Reauthorization while the opportunity is there over the next several weeks. The Administration requested $25.7 billion for Transportation and Treasury and the House responded by allocating $25.4 billion. This is compared to the FY 2004 bill for $28.4 billion. TEA 21: Where were we, again? Discussion over the funding levels for TEA 21 reauthorization largely subsided after both houses passed bills, and with the recent stand-off in Congress over bipartisan issues and a work period or two, our memories of reauthorization may be a bit hazy. To review: The Senate passed S 1072, SAFETEA (Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 2003), on February 12th, at a $318 billion funding level. The House passed HR 3550, or TEA LU (Transportation Equity Act, A Legacy for Users), on April 2nd which as it stands would fund transportation projects at the $284 billion level (a revision of the $275 number) over the next six years, after initially proposing a $375 billion bill, which could not muster enough support. The Administration has indicated that it will veto any transportation bill that spends more than $256 billion over the next 6 years with the principles that (1) there be no increase in taxes, including the gas tax, (2) no financing shall occur through borrowing or bonding, and (3) that there not be any extensive use of general funds other than the amount already allocated to transit. With the parameters of the conference committee being a low figure of $284 billion (the House bill) and a high-figure of $318 billion (the Senate bill) the final number is likely to be somewhere in the middle. Most legislators and analysts believe that the lower level will not cover the cost of the minimum guarantee program, which would promise to raise each state's returns on gas tax revenue to 95% by 2009. The House is attempting to circumnavigate the issue during this election year by inserting a "re-opener" clause in TEA LU which would enable Congress to restructure funding a year after the bill is passed. The Administration promises to veto a bill with a "re-opening" clause. As mentioned earlier, the deadline for the current TEA 21 extension is June 30th.