Category Archives: America Fast Forward

Explaining the other half of America Fast Forward: transportation bonds

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America Fast Forward Bonds

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Metro last year scored a win when Congress adopted part of the America Fast Forward initiative, expanding a federal loan program called TIFIA that offers low-interest, government backed loans.

Metro is now pushing Congress to adopt the other half of AFF, a bond program designed to raise money to accelerate transportation projects and create jobs.

Which might sound familiar. Everyone in Congress is always talking about job creation, including President Barack Obama in his State of the Union address on Tuesday. Metro believes AFF is a good way of tackling that issue while also dealing with a few others — expanding transit, reducing greenhouse gas emissions and ensuring that our infrastructure remains in good working order.

The bond program is a bit complex: it’s taken me a while to get my brain wrapped around it. The above graphic explains it well. In one sentence: those who invest in transportation bonds receive federal tax credits instead of interest, a good way for investors to lower their tax burden and a good way for transportation agencies to save on interest costs.

Another way of thinking about it: the program doesn’t ask the federal government to spend directly on transportation projects. It does, however, ask the feds to forgo some tax revenues.

Metro is hoping to get the bond and loan program enshrined in the next multi-year federal transportation spending bill. The current bill expires in 2014, meaning a new bill will hopefully be approved by Congress within the next year.

Measure J results updated again; yes votes rise to 65.33 percent

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Here are the latest Measure J results, posted a few minutes ago the Los Angeles County Registrar.

According to the Registar, 130,063 ballots were added to the election results today. It appears of those, 112,383 cast a vote in the Measure J election. That brings the estimated total still to be counted to 215,991 ballots, according to the Registrar.

Measure J needs two-thirds voter approval to pass. As we’ve said the last two weeks, it’s possible but unlikely due to two issues: 1) of the remaining votes to be counted, it’s unlikely all of them cast votes for or against Measure J, and; 2) Of the ballots remaining, it’s likely that at least 75 percent of them would need to be ‘yes’ votes for Measure J to pass.

The news release from the Registrar is posted after the jump.

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A few more points on America Fast Forward

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As many of you know, President Obama last week signed a two-year federal transportation spending bill. In recent decades, Congress has usually approved bills that cover more years but in these hyper-partisan times, and after nine extensions of the bill that expired in 2009, this definitely was a victory.

In addition, the bill contained part of the America Fast Forward program that has been created by Los Angeles Mayor Antonio Villaraigosa and backed by the Metro Board of Directors for the past couple of years.

America Fast Forward (pdf) originally called for expansion of both a federal bond program called QTIB and a federal loan program called TIFIA. The bond part of the program didn’t get traction in Congress — it involved some serious federal spending — but a hefty increase in TIFIA did make it into the bill. And that’s good news for Metro and transit agencies across the land who want to borrow money to build projects now rather than wait years or decades.

In particular because the bill greatly expanded the federal TIFIA program that provides loans, loan guarantees to local transportation projects around the country at competitive interest rates (today’s interest rate is 2.63 percent for a 35-year loan, by the way). As the TIFIA website puts it, “Each dollar of Federal funds can provide up to $10 in TIFIA credit assistance – and leverage $30 in transportation infrastructure investment.”

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America Fast Forward – Embedded in Surface Transportation Bill – Heads to White House for President’s Signature

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Metro CEO Art Leahy has just issued this legislative alert:

America Fast Forward – Embedded in Surface Transportation Bill – Heads to White House for President’s Signature

America Fast Forward, the innovative national transportation finance plan championed by our Board Chairman and Los Angeles Mayor Antonio Villaraigosa and our Board of Directors, is slated to become the centerpiece of the innovative finance portion of America’s new surface transportation program. Earlier today, the United States House of Representatives passed HR 4348, the Conference Report on the new surface transportation bill by a margin of 373-52, with the entire Los Angeles County Congressional Delegation voting in favor. The bill, known as MAP-21, reauthorizes Federal transportation policy and funding levels through September, 2014 at current funding levels, adjusted for inflation. Less than an hour after the House passed HR 4348, the United States Senate followed suit by passing the bill by a margin of 74-19, with both California Senators, Barbara Boxer and Dianne Feinstein, voting in favor.  Metro is deeply appreciative to our Board of Directors, Senator Boxer and all members of the Los Angeles County Congressional Delegation and other Members of Congress, and the broad coalition of labor, business, and environmental groups who worked hard to ensure that MAP-21 includes America Fast Forward. The bill is headed to the White House, where President Obama is expected to sign the legislation into law.

MORE:  American Public Transportation Association (APTA) report
House and Senate Vote to Pass Surface Transportation Conference Report

Congress votes again to extend federal transportation bill

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Below is the update from Metro’s government relations staff. This is the ninth extension of the previous multi-year federal transportation bill, which was signed into law by President Bush in 2005 and expired originally in 2009. The update:

A few moments ago, the U.S. House of Representatives passed a 90-day extension of the current Surface Transportation Authorization (H.R. 4281) on a 266 to 158 vote. H.R. 4281 will now be sent over to the U.S. Senate. This extension, though free of policy changes, was looked unfavorably upon by the U.S. Senate, which called on the House to pass their Surface Transportation Re-authorization Bill (MAP-21) that passed the Senate earlier in March. The current extension, and accompanying gas taxes, expires on Sunday, April 1, 2012.

The two-year bipartisan bill approved by the Senate — known as MAP-21 — includes provisions of Metro’s America Fast Forward plan to expand a federal loan program for major transportation projects. Whether House Republicans will ever consider the bill remains to be seen.

 

UPDATE, 2:45 p.m.: The Senate has agreed to the extension. Update from Metro government relations:

The U.S. Senate has passed the 90-day surface transportation authorization extension by unanimous consent. The extension, as passed by the House hours ago, will now move to the President’s desk for his signature. This new extension (the ninth such extension since SAFETEA-LU originally expired on September 30, 2009) will expire on June 30, 2012.

Our agency will continue to closely monitor the surface transportation bills in both the House and Senate.

Transit advocacy group discusses Measure R extension

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The activist group Move LA held its “L.A. on the Verge’ event at Union Station on Friday, with a big focus on transportation funding.

The group is headed by former Santa Monica Mayor Denny Zane, who clearly let the hundreds in attendance know his position: the Measure R sales tax increase that expires in 2039 should be extended by voters.

Such an extension could accomplish two things, according to Zane: 1) It could help accelerate the building of the 12 Measure R transit projects if Congress doesn’t fully adopt the America Fast Forward plan (and they’re not likely to), and; 2) It may help finance additional transit and highway projects beyond the original Measure R package approved by Los Angeles County voters in 2008.

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New Federal Transportation Authorization bill will be delayed — again

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The update from Metro’s government relations staff is below. The agency has been pushing for America Fast Forward legislation — to use government loans and financing to accelerate the building of transit and road projects — to be included in the bill.

A new multi-year bill was supposed to be passed by Congress two years ago. Fighting between Democrats and Republicans has delayed it, leading to several short-term renewals of the existing bill, which covered spending through fiscal year 2009 and was signed by President Bush in Aug. 2005.

The bill is also a chance for the federal government to lay out its transportation spending priorities for the next several years. For example, if the federal government wanted to greatly expand spending on transit, the multi-year bill would be the place to do it.

The update:

Despite a sustained effort by public transportation agencies, many Members of Congress, and a broad coalition of private sector organizations, Congress is poised to move consideration of a new federal transportation authorization bill to 2012. Efforts to reauthorize the previous surface transportation bill (SAFETEA-LU) in 2011 effectively ended this afternoon in Washington, DC when the Chairman of the House Transportation and Infrastructure Committee, John Mica (R-FL) announced that the legislative schedule next month would not permit him to move forward with a new transportation bill. The current extension of SAFETEA-LU is slated to expire on March 31, 2012. Our agency will continue to work diligently with Chairman Mica, Chairman Boxer of the Senate Environment and Public Works Committee and members of the Los Angeles County Congressional Delegation to ensure that our Board-approved legislative program is advanced in any transportation authorization bill considered by the second session of the 112th Congress in 2012.

What's happening at other transit agencies?

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A Portland MAX light rail train pulls into the station. Photo by Flickr user camknows.

This weekly post features news from other transit agencies and planners from around the world. Did we miss a good story? Let us know in the comments.

Under pressure from riders, TriMet promises to consider longer transfer times (Portland, Ore.)

A coalition of transit riders in Portland has won a small victory in its effort to extend transfer times to three hours from the current one-and-a-half hour window. The group successfully convinced the transit agency’s board of governors to study the feasibility of a three-hour transfer on TriMet’s bus and light rail lines. Advocates view extended transfers as a way of assuaging the effects of recession-induced service cuts, which have led to longer waits. While the board endorsed the study, it doesn’t look like they’re actively supportive of the transfer extension. Joseph Rose of Oregon Live reports that “TriMet considers the idea an epic policy shift that could cost more than it’s worth.”

Line of the Week: MAX Green Line (Portland, Ore.)

With Portland on the brain, here’s a quick review of the MAX Green Line from local blogger Jung Gatoona. Be sure to check out the time lapse video of the route and admire all the bus and transit only lanes.

Metro Atlanta voters warm to mass transit, poll shows

In sprawling Atlanta, voters are warming up to the idea of expanding the city’s mass transit system and improving alternatives to driving. That’s a good sign for the transportation sales tax referendum that will be on the ballot next year. The Atlanta Journal Constitution reports that “voters in 10 counties will be asked to approve a 10-year, 1-cent sales tax…expected to raise $7.2 billion.” Here are some more interesting poll numbers from the AJC:

Overwhelmingly, 91 percent of voters said it was important to address the region’s transportation problems to improve its quality of life and economic future. Additionally, 67 percent said the region’s traffic congestion is deteriorating their quality of life. And 82 percent said it was important to do more to encourage everyone to commute to work by bus or train.

RTD seeks private-sector boost (Denver, Colo.)

Denver has a big transit expansion plan called FasTracks and even a dedicated sales tax to fund it. However, like Measure R in L.A. County, the revenues trickle in over time. Denver transit officials are looking for ways to get more revenue up front and thus accelerate a number projects, according to the Denver Business Journal. While America Fast Forward could help Denver in that regard — as I wrote back in March — FasTracks backers are reaching out to the private sector to see if there are opportunities for the vaunted Public-Private Partnership.

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More details on President Obama's jobs plan and its proposals for transportation funding

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Metro’s government relations staff wrote the following update on the job creation package proposed by President Barack Obama on Thursday.

My quick take: it appears there will be more transportation money on the table — if Congress approves the package. However, it remains to be seen how much of those funds can be secured by Metro and how much can be applied toward accelerating Measure R transit and road projects.

The update:

White House Details Transportation Spending In American Jobs Act

Embedded as part of the American Jobs Act unveiled by President Obama last night is a proposal to provide $50 billion in immediate federal transportation spending. The proposed funding includes a request for Congress to provide $9 billion for our nation’s transit systems and $27 billion to bolster our nation’s highways. The proposal also includes an initiative, consistent with America Fast Forward, to vastly expand federal support for the Transportation Infrastructure and Finance and Innovation Act (TIFIA) program. Another $10 billion would be used to create a National Infrastructure Bank. To emphasize the importance of his transportation proposals, President Obama stated last night that, “building a world-class transportation system is part of what made us an economic superpower.” Below please find language from a White House fact sheet detailing the transportation spending outlined in the American Jobs Act.

After the jump is a list of transportation funding initiatives in the American Jobs Act.

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