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This year was—quietly—a wild one for public transportation. While there was no major surface transportation authorization bill like last year, the process of implementing the legislation—the Moving Ahead for Progress in the 21st Century Act (MAP-21)—came into full swing. Additionally, the industry had to weather the federal government shutdown, develop recommendations for the next authorization bill, and work with industry partners to call attention to the solvency issues facing the Highway Trust Fund.
The transportation community also welcomed a new DOT secretary: Anthony Foxx, who was sworn in as the department’s 17th secretary in July. The former Charlotte, NC, mayor succeeded Ray LaHood.
Ominous Beginning
As many public transportation leaders might recall, 2013 began with a bipartisan deal to avert the “fiscal cliff,” which included a delay of the sequestration cuts and an extension of some of the Bush-era tax cuts. Sequestration eventually came to pass, but its affects on the public transit industry were restricted to the programs supported by the General Fund.
Congress also passed a $10.9 billion supplemental bill for the FTA Emergency Relief program aimed at restoring the systems and infrastructure damaged as a result of Superstorm Sandy. The affected agencies and their needs contributed to the national attention on infrastructure.
Government Shutdown
The big news of the year was the two-week-long shutdown of the federal government in October. Republicans and Democrats found themselves at an impasse over sequestration, the FY14 budget and appropriations, and a host of other issues, and were unable either to finish the appropriations process or to complete a shorter term funding bill prior to the end of FY13 on Sept. 30.
As part of the resolution to the crisis, Congress reached an agreement that included both a continuing resolution (CR), which funds the federal government through Jan. 15, 2014, and a mandatory conference committee dedicated to producing a budget resolution. Going forward, both items will play heavily into public transportation’s ability to meet its obligations.
FY14 Appropriations
Currently, the federal government, including all DOT and FTA programs, are operating under the CR agreed to in the wake of the shutdown. The CR funds DOT and FTA at prior year (FY13) levels, which included sequestration cuts to FTA’s General Fund programs, as well as cuts to Washington Metropolitan Area Transit Authority and Amtrak grants.
However, the CR expires shortly after the New Year, and Congress has taken no major action to ensure that funding continues through the end of the fiscal year. FTA has not yet apportioned this year’s funds, due to the truncated funding timetable and uncertainty over the amount of full-year appropriations, although it has made funding available for public transit systems requiring financial assistance prior to the apportionment of FY14 funds.
Budget Talks
The other major component of the deal to reopen the federal government was the Conference Committee on the Budget, established to reach an agreement primarily on top-line discretionary spending levels.
As Passenger Transport went to press, details of the agreement reached between Senate Budget Committee Chairman Patty Murray (D-WA) and House Budget Committee Chairman Paul Ryan (R-WI), were being released, which could lead to a vote in the House as early as Dec. 13.
Until both the budget and the appropriations bills are completed, it will be unclear how each will affect public transportation. The budget details that have emerged suggest a loosening of the sequestration cuts in FY14-15. Further, APTA has weighed-in with the Budget Committee conferees, urging them to make allowances in the budget for legislators to be able to fix the Highway Trust Fund’s funding issue.
Regulatory Issues
FTA has been hard at work developing the necessary regulations to fulfill the requirements of MAP-21. Most notably, FTA issued an Advance Notice of Proposed Rulemaking (ANPRM) on Safety and Transit Asset Management.
Due to the size and importance of the ANPRM, APTA has been hosting a series of webinars for its members to develop answers to the questions listed in the notice, as well as guiding APTA members in drafting comments to the docket. Comments are due Jan. 2. In addition, APTA members have commented on MPO Representation rulemaking, Formula Grants for Rural Areas Circular changes, and others.
Tax Issues
The two major tax issues that affect public transit agencies—the Commuter Tax Benefit and the Alternative Fuels Tax Credit—remain unresolved and will expire at the end of the calendar year.
The Commuter Tax Benefit is a fringe benefit that employers are able to give their employees. Currently, this benefit and the Parking Benefit, another fringe benefit, are in parity at $240 a month, meaning that an employee can take a pre-tax benefit up to $240 a month for either public transportation or parking to ease commuting costs. Unless Congress acts, the Commuter Tax Benefit drops on Jan. 1 to $130 per month, and the parking subsidy actually increases. APTA has repeatedly urged Congress to maintain parity between the two benefits. Because it is nearly impossible to retroactively apply the Commuter Tax Benefit, APTA hopes Congress will find a solution before Dec. 31.
The Alternative Fuels Tax Credit’s future also remains uncertain. Public transportation providers use the tax credit to convert their conventionally powered vehicles to compressed or liquefied natural gas. Without the tax credit, many public transit agencies, if not all, would be unable to convert to this cleaner fuel source.
PRIIA and RSIA
Advocates for transportation and infrastructure investment were heartened to see Congress make bipartisan progress on another significant piece of infrastructure legislation. Early in the year, the Senate Environment and Public Works Committee moved a bipartisan Water Resources Development Act bill to the full Senate, where it passed by a broad margin of 83-14. Later in the year, optimism continued when the House passed the Transportation and Infrastructure Committee’s version of the bill by an even larger margin of 417-3.
Both the Passenger Rail Investment and Improvement Act (PRIIA) and the Rail Safety Improvement Act (RSIA) expired in September; industry leaders hoped both acts would be reauthorized prior to the expiration. Congress has done little to address reauthorization, in part because most of its efforts were spent on the Water Resources Development Act (WRDA). With WRDA now moving to conference, members of Congress could turn their attention to rail legislation.
Surface Transportation Authorization
MAP-21 expires Sept. 30, and APTA is prepared to offer recommendations as Congress looks to pass the next surface transportation bill. Early this month, APTA adopted its new authorization recommendations and is preparing to work with Congress to address the industry’s needs in the next bill. |
