Earlier this week, Pres. Obama signed HR 2847, the "HIRE Act," into law. This legislation extends SAFETEA-LU highway and transit authorizations through December 31, 2010, making sure that about $20 billion is made available to cover existing appropriations (and anticipated appropriations for the first quarter of FY 2011). It also continues the increased federal share of Medicaid costs that were first established under the American Recovery and Reinvestment Act.
Back payment to US DOT employees affected by last month's short-term furlough during the lapse in authorizations remain up in the air. The House has passed a couple of measures to address this question, but Senate action has not yet occurred. The House attached the latest such back pay provision to HR 4851, the "Continuing Extensions Act," which otherwise addresses lapsing unemployment, COBRA and other provisions.
Returning to the HIRE Act, there was a bit of a conniption over how to treat the FHWA accounts that had been used to fund some high-dollar highway projects under SAFETEA-LU. Basically, the question was whether these accounts still need extension, even after those Congressionally designated projects had been funded. But in the urgent need to do something, that extension occurred.... Now, Congress is trying to set things straight, having attached a bit of correcting language to another bill, HR 4853, the FAA Extension Act (yes, the federal aviation program also has expired and needs reauthorization), which it passed and sent on to the Senate this week.
Friday, March 19, 2010
Thursday, March 11, 2010
"Jobs" bills -- a playcard
Turn to just about any news media this month, and you'll see or hear something about job creation legislation being passed or debated in Congress. There are a number of bills in play, all of which have something or another to do with transportation and the programs that depend upon transportation. Here's the mid-March rundown:
HR 2847, Hiring Incentives to Restore Employment Act
This bill has experienced a long and convulsive path through the Capitol. In its current form, House and Senate are using it as one of their job creation measures. As far as providers or stakeholders of public transportation are concerned, the leading feature of this bill is that it calls for extending current SAFETEA-LU authorizations through December 31, 2010. An earlier House-passed version of this bill included additional money, on top of SAFETEA-LU, for transit, as well as supplemental grants for job training, and an extension of the increased federal share of Medicaid costs, but all those provisions - other than the SAFETEA-LU extension - seem to have been jettisoned by the bills passed by the Senate on February 24, and by the House on March 4. At this point, the House and Senate legislation is not too divergent; it's possible that they can reach agreement on this bill (which mainly has $150 billion or so in tax provisions that are hoped to stimulate employment) and send it to President Obama for signature.
HR 4213, Tax Extenders Act of 2009
Every year, there are a number of provisions and features in the Internal Revenue Code that expire unless extended. This becomes a convenient, "must-pass" vehicle for other morsels of legislation. This year's Tax Extenders bill passed the House in December as a "clean" bill (ie, just extending expiring tax stuff, with nothing else attached). This week - on March 10 - the Senate passed its version of an extenders bill that included $140 billion of other stuff, including provisions that would extend the increased federal share of Medicaid (enacted under the American Recovery and Reinvestment Act) for another year.
HR 4691, Temporary Extension Act of 2010
As previously reported here and elsewhere, the main transportation feature of this bill was the short-term extension of SAFETEA-LU authorizations through March 28, 2010.
HR 4812, Local Jobs for America Act
This bill was just introduced yesterday by Congressman George Miller (D-Calif), chair of the House Education and Labor Committee. The main feature, as touted by Congressman Miller's press release, is the authorization of $100 billion to help state governments ($25 billion) and local governments ($75 billion) carry out infrastructure projects, keep education systems open, pay salaries of firefighters and other essential personnel, et al. Although it speaks directly to the expressed needs of state and local governments, they shouldn't run out and spend that money right away; it's far too soon to say whether this bill, or its provisions, will advance through the legislative process.
HR 2847, Hiring Incentives to Restore Employment Act
This bill has experienced a long and convulsive path through the Capitol. In its current form, House and Senate are using it as one of their job creation measures. As far as providers or stakeholders of public transportation are concerned, the leading feature of this bill is that it calls for extending current SAFETEA-LU authorizations through December 31, 2010. An earlier House-passed version of this bill included additional money, on top of SAFETEA-LU, for transit, as well as supplemental grants for job training, and an extension of the increased federal share of Medicaid costs, but all those provisions - other than the SAFETEA-LU extension - seem to have been jettisoned by the bills passed by the Senate on February 24, and by the House on March 4. At this point, the House and Senate legislation is not too divergent; it's possible that they can reach agreement on this bill (which mainly has $150 billion or so in tax provisions that are hoped to stimulate employment) and send it to President Obama for signature.
HR 4213, Tax Extenders Act of 2009
Every year, there are a number of provisions and features in the Internal Revenue Code that expire unless extended. This becomes a convenient, "must-pass" vehicle for other morsels of legislation. This year's Tax Extenders bill passed the House in December as a "clean" bill (ie, just extending expiring tax stuff, with nothing else attached). This week - on March 10 - the Senate passed its version of an extenders bill that included $140 billion of other stuff, including provisions that would extend the increased federal share of Medicaid (enacted under the American Recovery and Reinvestment Act) for another year.
HR 4691, Temporary Extension Act of 2010
As previously reported here and elsewhere, the main transportation feature of this bill was the short-term extension of SAFETEA-LU authorizations through March 28, 2010.
HR 4812, Local Jobs for America Act
This bill was just introduced yesterday by Congressman George Miller (D-Calif), chair of the House Education and Labor Committee. The main feature, as touted by Congressman Miller's press release, is the authorization of $100 billion to help state governments ($25 billion) and local governments ($75 billion) carry out infrastructure projects, keep education systems open, pay salaries of firefighters and other essential personnel, et al. Although it speaks directly to the expressed needs of state and local governments, they shouldn't run out and spend that money right away; it's far too soon to say whether this bill, or its provisions, will advance through the legislative process.
Wednesday, March 3, 2010
DOT: Back in Business, at least for a few weeks
Late last night (March 2), President Obama signed the "Temporary Extension Act of 2010" into law. Among other things, this legislation extends the SAFETEA-LU highway and transit authorizations to a new deadline of March 28, 2010.
As was widely reported among the DC news media, and in the transportation press, there was a bit of an issue, in that the Senate did not pass this extension bill before the February 28 expiration of the last SAFETEA-LU extension. As a result, there were a couple of days in which many DOT employees were on a furlough, work on some federally involved transportation projects was suspended, and there was a lot of blogging and finger-pointing about this delay.
But once TEA-2010 was signed into law, DOT Secretary Ray LaHood was on hand at his agency's headquarters, welcoming the employees back to work.
Note, though, that this latest transportation extension is only for a few more weeks. It's too soon to tell what may happen later this month. In the meantime, Senator Barbara Boxer (D-Calif.), chair of the Environment and Public Works Committee, convened a hearing today (Mar. 3) at which she vowed to have her committee do its part on a SAFETEA-LU renewal -- not another extension -- before the year is up.
As was widely reported among the DC news media, and in the transportation press, there was a bit of an issue, in that the Senate did not pass this extension bill before the February 28 expiration of the last SAFETEA-LU extension. As a result, there were a couple of days in which many DOT employees were on a furlough, work on some federally involved transportation projects was suspended, and there was a lot of blogging and finger-pointing about this delay.
But once TEA-2010 was signed into law, DOT Secretary Ray LaHood was on hand at his agency's headquarters, welcoming the employees back to work.
Note, though, that this latest transportation extension is only for a few more weeks. It's too soon to tell what may happen later this month. In the meantime, Senator Barbara Boxer (D-Calif.), chair of the Environment and Public Works Committee, convened a hearing today (Mar. 3) at which she vowed to have her committee do its part on a SAFETEA-LU renewal -- not another extension -- before the year is up.
Thursday, February 25, 2010
Extensions remain out of sync
In the bigger picture, it's not a huge issue. But if you're a state DOT or a transit agency, there's a dire need to know what's up with the extension of SAFETEA-LU, the current highway and transit authorization.
The Senate's just-passed job-creation legislation would extend these programs through December 31, 2010.
It's not clear what the House is going to do with this latest bill from the Senate. Therefore, the House just passed a measure that would provide short-term extensions for a number of things, including federal payments for unemployment benefits, Medicare payments for doctors, enhanced COBRA benefits, and a short-term extension of SAFETEA-LU. In this latest House bill, the highway and transit programs' authorizations would go through March 28, 2010.
In brief, though, there are pockets of resistance to the Senate bill among House members, and there are pockets of resistance to this House bill among Senate members.
The clock runs out on the current transportation bill in less than a week. Inevitably, Congress and the White House will come to terms on another extension, but there will be some moments of continued dispute and uncertainty until the 11th hour.
The Senate's just-passed job-creation legislation would extend these programs through December 31, 2010.
It's not clear what the House is going to do with this latest bill from the Senate. Therefore, the House just passed a measure that would provide short-term extensions for a number of things, including federal payments for unemployment benefits, Medicare payments for doctors, enhanced COBRA benefits, and a short-term extension of SAFETEA-LU. In this latest House bill, the highway and transit programs' authorizations would go through March 28, 2010.
In brief, though, there are pockets of resistance to the Senate bill among House members, and there are pockets of resistance to this House bill among Senate members.
The clock runs out on the current transportation bill in less than a week. Inevitably, Congress and the White House will come to terms on another extension, but there will be some moments of continued dispute and uncertainty until the 11th hour.
Wednesday, February 24, 2010
Does White House Health Care Bill Affect Transit?
After the nation witnessed Congressional action on health reform reach near-paralysis in the Senate, President Obama announced a White House summit on health reform for February 25, and issued what was touted as his administration's own legislative proposal for health reform.
In contrast to the Clinton-era health reform efforts, Mr Obama's proposal does not exist in detailed legislative language. Instead, he and his team have published many pages of bullet-pointed priorities on the White House web site.
There are many important and complex issues being considered in the health reform discussion. Most of these affect individuals, employers, and - of course - the medical and insurance industries.
Thus far, the main thing in the health care debate that would affect public and community transportation providers is an expansion of who's eligible for coverage under the federal-state Medicaid program. Both the House- and Senate-passed health reform bills would guarantee Medicaid benefits for a lot more people than the 40+ million low-income people currently covered. The President recommends this expansion, as well, and would have the federal government underwrite the full cost for this expansion in the first few years of enacted reform. After that, there would be a phase-down period of a few years, during which states would be expected to pick up a gradually increasing share of these increased Medicaid costs.
The reason this Medicaid issue is important to transit is two-fold. For one, Medicaid payments continue to be the largest single federal investment in public transit operating costs, as Medicaid requires states to assure access - and transportation - to non-emergency medical services. Although proposed Medicaid expansions are likely to bring in young adults and low-income working families, as opposed to the more-traditional populations of non-working, elderly and otherwise disadvantaged persons long covered under this program, there are bound to be some increased riders - and payments - for transportation services under this expansion.
From the transportation industry's perspective, that's the good news in proposed Medicaid expansion. The second point of concern, though, is that there eventually would come a time when states have to pick up more of the costs of the expansion. However, all budgetary evidence shows that the price tag for this Medicaid increase will hit states' coffers several years before they can expect to begin enjoying the fruits of any economic recovery, even under the rosiest scenarios currently at play. Drains on state budgets put a lot of transportation needs at risk, including social services, workforce development, and even the ability of states to assist with the capital and operating costs of public transit.
In contrast to the Clinton-era health reform efforts, Mr Obama's proposal does not exist in detailed legislative language. Instead, he and his team have published many pages of bullet-pointed priorities on the White House web site.
There are many important and complex issues being considered in the health reform discussion. Most of these affect individuals, employers, and - of course - the medical and insurance industries.
Thus far, the main thing in the health care debate that would affect public and community transportation providers is an expansion of who's eligible for coverage under the federal-state Medicaid program. Both the House- and Senate-passed health reform bills would guarantee Medicaid benefits for a lot more people than the 40+ million low-income people currently covered. The President recommends this expansion, as well, and would have the federal government underwrite the full cost for this expansion in the first few years of enacted reform. After that, there would be a phase-down period of a few years, during which states would be expected to pick up a gradually increasing share of these increased Medicaid costs.
The reason this Medicaid issue is important to transit is two-fold. For one, Medicaid payments continue to be the largest single federal investment in public transit operating costs, as Medicaid requires states to assure access - and transportation - to non-emergency medical services. Although proposed Medicaid expansions are likely to bring in young adults and low-income working families, as opposed to the more-traditional populations of non-working, elderly and otherwise disadvantaged persons long covered under this program, there are bound to be some increased riders - and payments - for transportation services under this expansion.
From the transportation industry's perspective, that's the good news in proposed Medicaid expansion. The second point of concern, though, is that there eventually would come a time when states have to pick up more of the costs of the expansion. However, all budgetary evidence shows that the price tag for this Medicaid increase will hit states' coffers several years before they can expect to begin enjoying the fruits of any economic recovery, even under the rosiest scenarios currently at play. Drains on state budgets put a lot of transportation needs at risk, including social services, workforce development, and even the ability of states to assist with the capital and operating costs of public transit.
Tuesday, February 23, 2010
Senate "jobs" bill would extend transit programs
The political pundits and news media are writing at length about yesterday's cloture vote in the Senate concerning its version of a job-creating measure, currently called the HIRE Act
The $15 billion measure the Senate is expected to pass on February 24 primarily contains payroll and business tax breaks, intended to stimulate employment. Nothing there of direct connection to public transit or human services.
What is significant for transit interests in this bill is an extension of SAFETEA-LU, the current authorizing legislation, through December 31, 2010. According to reports, at least one of the votes for cloture, from Sen. George Voinovich [R-Ohio] was conditioned on a verbal commitment for the Senate to take up the overdue rewrite of SAFETEA-LU before the year is over.
In its current form, this Senate bill doesn't have any additional funding for transit, nor any of the other spending provisions found in the corresponding House legislation. The House bill, known as the "Jobs for Main Street Act," which was passed in December 2009, has provisions similar to those now arriving on the Senate floor, including the SAFETEA-LU extension, but also had approximately $150 billion in various spending programs, including $8.4 billion in supplemental transit grants, $1.2 billion in supplemental job training grants, and a continuation of the increased federal share of Medicaid costs that was a feature of the American Recovery and Reinvestment Act.
No one's to be talking yet about what happens when House and Senate leaders seek to reconcile their two bills. First, it seems the Senate needs to pass something.
The $15 billion measure the Senate is expected to pass on February 24 primarily contains payroll and business tax breaks, intended to stimulate employment. Nothing there of direct connection to public transit or human services.
What is significant for transit interests in this bill is an extension of SAFETEA-LU, the current authorizing legislation, through December 31, 2010. According to reports, at least one of the votes for cloture, from Sen. George Voinovich [R-Ohio] was conditioned on a verbal commitment for the Senate to take up the overdue rewrite of SAFETEA-LU before the year is over.
In its current form, this Senate bill doesn't have any additional funding for transit, nor any of the other spending provisions found in the corresponding House legislation. The House bill, known as the "Jobs for Main Street Act," which was passed in December 2009, has provisions similar to those now arriving on the Senate floor, including the SAFETEA-LU extension, but also had approximately $150 billion in various spending programs, including $8.4 billion in supplemental transit grants, $1.2 billion in supplemental job training grants, and a continuation of the increased federal share of Medicaid costs that was a feature of the American Recovery and Reinvestment Act.
No one's to be talking yet about what happens when House and Senate leaders seek to reconcile their two bills. First, it seems the Senate needs to pass something.
Friday, February 19, 2010
Transit Funds -- the installment plan
Right after the Presidents Day holiday, the Federal Transit Administration issued its notice allocating $5.4 billion in transit funds to states, cities and specific capital projects. Lots of numbers in this 100-page notice, but no surprises.
The main thing to note is that FTA was only able to allocate 5/12 of its FY 2010 appropriation. That's because SAFETEA-LU, the legislation authorizing these funds, was not extended through the full fiscal year. The current extension runs only to the end of this month.
Another SAFETEA-LU extension is likely to be included in any "jobs bills" that the Senate considers (the House version of a jobs bill extends SAFETEA-LU authorizations through the end of the current fiscal year), but that action awaits debate on the Senate floor next week. Assuming a remainder-of-year extension is enacted, FTA will probably then issue another apportionments notice, and is likely then to issue notices inviting applications for a few of its smaller competitive grant programs, such as transit in parks and tribal transit.
If you want to see precisely how much money is allocated to each recipient of formula-based transit grants, and how much is allocated to all the earmarked capital bus, bus facility, and "new starts" fixed-guideway systems, read the full notice on the FTA web site (NOTE: if reading the Federal Register notice, read the PDF file, not the "text" file, as the latter does not contain any of the funding tables).
The main thing to note is that FTA was only able to allocate 5/12 of its FY 2010 appropriation. That's because SAFETEA-LU, the legislation authorizing these funds, was not extended through the full fiscal year. The current extension runs only to the end of this month.
Another SAFETEA-LU extension is likely to be included in any "jobs bills" that the Senate considers (the House version of a jobs bill extends SAFETEA-LU authorizations through the end of the current fiscal year), but that action awaits debate on the Senate floor next week. Assuming a remainder-of-year extension is enacted, FTA will probably then issue another apportionments notice, and is likely then to issue notices inviting applications for a few of its smaller competitive grant programs, such as transit in parks and tribal transit.
If you want to see precisely how much money is allocated to each recipient of formula-based transit grants, and how much is allocated to all the earmarked capital bus, bus facility, and "new starts" fixed-guideway systems, read the full notice on the FTA web site (NOTE: if reading the Federal Register notice, read the PDF file, not the "text" file, as the latter does not contain any of the funding tables).
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