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With the administration’s Fiscal Year 2012 budget on everyone’s mind, Passenger Transport (PT) asked Peter M. Rogoff, administrator of the Federal Transit Administration, some pressing questions concerning this budget proposal. His responses follow.
PT: Can you talk at all about what the overall proposal seeks to do in terms of addressing national goals?
Rogoff: During his State of the Union Address, President Obama laid out an aggressive but achievable plan to out-build, out- innovate, and out-educate our global economic competitors. At the heart of the president’s challenge is public transit. The president’s budget and reauthorization proposal mark a groundbreaking commitment to expand transit options for Americans and maintain our transit systems in a state of good repair.
This commitment is an important reflection of the role that transportation infrastructure—including transit—will play in growing our economy for years to come. Proposed funding for affordable, efficient, and sustainable bus and rail transit systems is increased by 126 percent in the president’s budget proposal. And our commitment to safety is demonstrated by the fact that the budget also requests new authority for the Federal Transit Administration to ensure the safety of rail-transit riders across America.
We understand it would replace the existing bus/bus facilities program and the fixed guideway modernization program. How would you distribute these funds and how would you address situations where an agency needs to address substantial capital projects, such as maintenance facilities and fueling facilities?
The budget provides $10.7 billion for State of Good Repair (SGR). For Fiscal Year 2012, that’s more than three times our current funding for fixed guideway modernization and discretionary bus programs combined. Of this, $7.5 billion is included in the president’s $50-billion up-front investment in DOT-wide initiatives, so SGR is very high on the Obama Administration's agenda.
Through the SGR program, we will provide formula grants to transit agencies to enable them to improve the condition of their existing capital assets. Grants will be distributed by a reformulated two-tiered formula for both bus and rail that closely reflects the capital needs of transit agencies. The formula will give priority to transit agencies with the most pressing capital investment requirements.
Recent FTA studies show that older, rail-based transit systems face the greatest capital replenishment needs. A September 2010 FTA study found that the nation’s transit systems, including bus systems, have a $78 billion backlog of assets in marginal or poor condition. Given that, FTA’s SGR formulas will balance the needs of older and newer transit systems.
There is a discussion in the proposal about performance measurements. APTA supports performance measures in the transportation program and is in the process of finalizing its principles on this issue. Can you talk a bit about what kind of goals you want to seek in the performance measures?
The administration wants to be sure that we target resources to transit agencies with the greatest capital asset needs and monitor their progress in bringing transit assets to a state of good repair.
As part of this effort, FTA will develop performance measures that focus on reducing the nation’s capital asset backlog. We envision that grantees will report their asset conditions and how they are addressing their backlog via FTA’s National Transit Database (NTD) on an annual basis. This will help the FTA continue to make the case for adequate SGR investment.
Of course, FTA’s success in this area will depend on the quality of the data we receive. So, in order to improve the quality of data, FTA will be working with transit agencies both to develop a simplified analysis tool to help with forecasting long-term recapitalization needs and to ensure they have accurate, up-to-date inventory data.
Can you elaborate on temporary, targeted use of federal transit funds to help transit systems address operating costs at this point in time when revenues that normally help support transit operating costs have been adversely affected by the economy?
DOT’s proposed flexibility to use [Section] 5307 funds for operating expenses is an important recognition that these agencies need help addressing their operating shortfalls in the short run. In smaller urban areas and in rural areas, of course, FTA formula funds can already pay for operating assistance. But now we are proposing that FTA funding be available for temporary operating assistance specifically in economically distressed urbanized areas with a population of over 200,000. This flexibility would phase out over three years. In the first year, grantees in these targeted areas would be permitted to use up to 25 percent of their urbanized area apportionment for operating expenses and declining portions during the second and third years.
What other highlights of the budget are you enthusiastic about?
Our renamed Capital Investment Program, formerly the New Starts program, will feature simpler streamlined requirements for funding. The program received a record $3.2 billion in the president’s FY 2012 proposed funding recommendations for 28 transit construction projects across the United States. This amount includes assistance from a $1 billion up-front investment to help major transit capital projects reach the finish line. This will help us do an even better job of moving projects to revenue service and fully paying off the federal share more quickly.
In addition, with our new emergency relief program, we’ll be able to green-light up to $25 million a year in emergency assistance to grantees who, for example, lose a significant portion of their bus fleet to a flood. We will no longer be entirely dependent on FEMA and other agencies for a quick emergency response.
The budget lays the foundation for a six-year $119 billion reauthorization proposal for transit—a significant 126 percent increase above our level under SAFETEA-LU. This includes a more streamlined formula for State of Good Repair; a Consolidated Specialized Transportation Program and improved processes for the capital transit program; and a new Livable Communities pilot program that provides greater access to transit for cities and rural areas. | 
