Today or tomorrow, Pres Obama is expected to sign an $858 billion package of tax cuts and extensions into law. While some provisions of this legislation, such as the extension of unemployment benefits, and a temporary rollback of payroll taxes for Social Seucrity, will be noticed by almost every working and non-working person, there is at least one nugget of news for the transit community.
Sec. 727 of the tax relief bill continues the temporary "parity" of tax-favored transit benefits for one more year, through December 31, 2011. This means that employers can continue to provide tax-free transit and vanpooling benefits of up to approximately $230 per month under Section 132(f) of the Internal Revenue Code. This is the same as the amount of tax-free parking benefits employers are allowed to provide.
Prior to enactment of the American Recovery and Reinvestment Act (ARRA), transit benefits were capped at an annually adjusted rate that was approximately half the value of allowed parking benefits. ARRA provided a temporary increase for transit, but this going to expire this month, and the transit benefit would have reverted to an estimated $120 per month, were it not for this legislative action.
Other aspects of the "tax relief" bill may be noticed in some corners of the transit community. There are extensions of the Work Opportunity Credit and New Markets Tax Credits, which can facilitate employment of certain populations and tax-favored investments in economically distressed areas, respectively. Some "post-Katrina" and "post-9/11" tax credit programs also are extended. On the other hand, the "Build America Bonds" program created under ARRA is not being extended, and new bonding will come to an end this month.
In other news, Senate efforts to pass a comprehensive "omnibus" appropriations bill have fallen apart. Senate leaders are regrouping, to see what next steps to take. Since the current continuing resolution expires this weekend, some action is imminent, but it's hard to gauge whether the next legislation will sustain government spending for a few days, a few months, or the remainder of the current fiscal year.
Friday, December 17, 2010
Thursday, December 9, 2010
Preparing for extensions, continuations
As widely reported, federal spending for the current fiscal year (i.e., the year ending September 30, 2011, or FY 2011), has not been finalized by Congress and Pres. Obama. The current "continuing resolution" is keeping the federal government in business through Dec. 18, 2010.
The House has passed a massive, government-wide continuing spending bill that would sustain federal programs and activities through the remainder of the fiscal year. Under this legislation, most federal programs would be sustained at their FY 2010 funding levels, with some adjustments here and there. The House bill appears to be devoid of specific project earmarks.
For a number of reasons, this bill is believed to face an uncertain fate in the Senate. Until something predictable starts to emerge in Senate deliberations, I'm loath to post or predict funding levels.
In the transportation arena, one of the critical components of the House spending bill is a one-year extension of the current SAFETEA-LU highway and transit legislation, continuing these authorizations through September 30, 2011.
Speaking of extended authorizations, another piece of legislation, the Claims Resolution Act of 2010, was just signed into law by Pres. Obama. While the headline features of this bill are guaranteeing settlements for Native Americans (over BIA-administered trust accounts) and African-American farmers (concerning improperly denied farm loans), a key feature of this legislation for public and community transportation stakeholders is an extension of the Temporary Assistance for Needy Families program authorizations through September 30, 2011.
The House has passed a massive, government-wide continuing spending bill that would sustain federal programs and activities through the remainder of the fiscal year. Under this legislation, most federal programs would be sustained at their FY 2010 funding levels, with some adjustments here and there. The House bill appears to be devoid of specific project earmarks.
For a number of reasons, this bill is believed to face an uncertain fate in the Senate. Until something predictable starts to emerge in Senate deliberations, I'm loath to post or predict funding levels.
In the transportation arena, one of the critical components of the House spending bill is a one-year extension of the current SAFETEA-LU highway and transit legislation, continuing these authorizations through September 30, 2011.
Speaking of extended authorizations, another piece of legislation, the Claims Resolution Act of 2010, was just signed into law by Pres. Obama. While the headline features of this bill are guaranteeing settlements for Native Americans (over BIA-administered trust accounts) and African-American farmers (concerning improperly denied farm loans), a key feature of this legislation for public and community transportation stakeholders is an extension of the Temporary Assistance for Needy Families program authorizations through September 30, 2011.
Wednesday, November 10, 2010
HHS Publishes FMAP rates for 2012
One of the most important numbers for state budgeting and other purposes is the Federal Medical Assistance Percentage, or FMAP. At its core, this number represents the rate at which the federal government will reimburse states for medical services they provide through Medicaid, but FMAP rates also are used in a number of other federal programs, including the Children's Health Insurance Program, support to states for child support enforcement, some payments to states through the Child Care and Development Fund, and some assistance to states for foster care and related programs.
Because these programs, especially Medicaid, represent huge portions of states' budgets, FMAP-based reimbursements loom large in state budgeting. As a result, state agencies and their partners are taking note of a notice published today (November 10) by the US Dept of Health and Human Services, establishing the FMAP rates that will be in effect from October 1, 2011, through September 30, 2012. FMAP rates are calculated every year. Current and historical rates are posted on-line by the HHS Assistant Secretary for Planning and Evaluation (ASPE). The rates for FY 2012 appear in the November 10, 2010, Federal Register, but soon will make their way to the ASPE web site.
For transportation providers, FMAP rates may be behind-the-scenes, but are significant. States spend close to $3 billion a year on non-emergency transportation through their Medicaid programs, much of which is provided by public and community transportation services. Since the overwhelming majority of states claim these transportation expenses as a "medical" expense, reimbursed by the federal government at the FMAP rate, any change in those percentages will affect the bottom line of states' Medicaid budgets, and can influence the ways in which states procure and pay for their Medicaid non-emergency transportation.
If you are unfamiliar with FMAP rates, here's a bit of background. They are calculated annually using a formula based on each state's average per capita income. The lower a state's per capita income, the higher its FMAP. By law, no state FMAP can be lower than 50 percent, nor higher than 83 percent (14 states have FMAPs of 50 percent; Mississippi's FMAP is the highest, at 74.73 percent in FY 2011 (going down to 74.18 percent in FY 2012). The District of Columbia's FMAP is set at 70 percent; the FMAP in territories and possessions is fixed at 50 percent. Under the American Recovery and Reinvestment Act, there was a temporary increase of at least 6.2 percentage points in every state's FMAP, which has steered nearly $92 billion of additional federal investments into state Medicaid coffers.
Because these programs, especially Medicaid, represent huge portions of states' budgets, FMAP-based reimbursements loom large in state budgeting. As a result, state agencies and their partners are taking note of a notice published today (November 10) by the US Dept of Health and Human Services, establishing the FMAP rates that will be in effect from October 1, 2011, through September 30, 2012. FMAP rates are calculated every year. Current and historical rates are posted on-line by the HHS Assistant Secretary for Planning and Evaluation (ASPE). The rates for FY 2012 appear in the November 10, 2010, Federal Register, but soon will make their way to the ASPE web site.
For transportation providers, FMAP rates may be behind-the-scenes, but are significant. States spend close to $3 billion a year on non-emergency transportation through their Medicaid programs, much of which is provided by public and community transportation services. Since the overwhelming majority of states claim these transportation expenses as a "medical" expense, reimbursed by the federal government at the FMAP rate, any change in those percentages will affect the bottom line of states' Medicaid budgets, and can influence the ways in which states procure and pay for their Medicaid non-emergency transportation.
If you are unfamiliar with FMAP rates, here's a bit of background. They are calculated annually using a formula based on each state's average per capita income. The lower a state's per capita income, the higher its FMAP. By law, no state FMAP can be lower than 50 percent, nor higher than 83 percent (14 states have FMAPs of 50 percent; Mississippi's FMAP is the highest, at 74.73 percent in FY 2011 (going down to 74.18 percent in FY 2012). The District of Columbia's FMAP is set at 70 percent; the FMAP in territories and possessions is fixed at 50 percent. Under the American Recovery and Reinvestment Act, there was a temporary increase of at least 6.2 percentage points in every state's FMAP, which has steered nearly $92 billion of additional federal investments into state Medicaid coffers.
Tuesday, November 2, 2010
Heed This! FTA Posts Annual Certifications & Assurance Notice for FY 2011
If you plan on receiving funding from the Federal Transit Administration (FTA) this fiscal year, please take note of their latest "Certifications and Assurances" notice, which was published in the November 2, 2010, Federal Register, and which is available on the FTA website. The fine print may seem eye-numbing, but there is comfort in knowing that there were only modest, updating, changes this year, and there is even greater comfort in knowing that you're agreeing to uphold applicable federal requirements in the receipt and use of your FTA funds. All FTA grantees must agree to these. If you have questions, contact your FTA regional office.
Tuesday, October 5, 2010
National Transit Database - What's Going to Count?
The Federal Transit Administration (FTA) uses its National Transit Database (NTD) for a number of purposes. Most significantly, NTD data are used to determine how funds are distributed under the FTA Section 5307 (formula grants for urban public transit) and fixed-guideway modernization programs. Since these two programs account for 55 percent of the FTA program, it's important to the transit community and to FTA that NTD data be reliable and consistent.
In recent years, the urban transit network has branched out in many innovative ways. More urban transit services are provided to specialized audiences, such as customers of human services programs. Urban transit providers are using new modes of service delivery, such as "flex route" or "route deviation" services, bus rapid transit, and vanpools to better serve various customers and communities. With commuting distances growing longer every year, many urban transit providers are extending services into surrounding rural areas, or even providing transit services that connect multiple urbanized areas. In order to assure that these urban transit systems are able to receive the FTA formula funds they need for these services, accurate NTD data are essential.
To that end, FTA is seeking comments on some amendments it hopes to make to the NTD reporting procedures that will be used in the 2011 reporting year. This solicitation of comments appears in the October 5, 2010, Federal Register at page 61553, and also appears on the FTA website. Comments are being collected through December 6, 2010.
Some of the NTD reporting topics for which FTA is seeking customer input are: (1) circumstances and criteria for reporting vanpool data to the NTD; (2) reporting for commuter bus, bus rapid transit, and various forms of rail transit modes; (3) clarifying some definitions of certain aerial tramway and rail-related reporting terms; (4) consistent reporting procedures for transit agencies with 9 or fewer vehicles, including those that operate in both urbanized and rural areas; (5) simplified financial balance sheet reporting; (6) rules of attribution for transit agencies operating in more than one urbanized area, or that operate in both urbanized and rural areas; and (7) procedures for responding to any changes in urbanized area status that may occur during the 2011 NTD reporting year.
Official comments on this FTA notice should be made electronically through www.regulations.gov (use docket number FTA-2010-0027]. For further information on the NTD and this particular FTA notice, contact FTA's John Giorgis by phone (202-366-5340) or email (john.giorgis@dot.gov)
In recent years, the urban transit network has branched out in many innovative ways. More urban transit services are provided to specialized audiences, such as customers of human services programs. Urban transit providers are using new modes of service delivery, such as "flex route" or "route deviation" services, bus rapid transit, and vanpools to better serve various customers and communities. With commuting distances growing longer every year, many urban transit providers are extending services into surrounding rural areas, or even providing transit services that connect multiple urbanized areas. In order to assure that these urban transit systems are able to receive the FTA formula funds they need for these services, accurate NTD data are essential.
To that end, FTA is seeking comments on some amendments it hopes to make to the NTD reporting procedures that will be used in the 2011 reporting year. This solicitation of comments appears in the October 5, 2010, Federal Register at page 61553, and also appears on the FTA website. Comments are being collected through December 6, 2010.
Some of the NTD reporting topics for which FTA is seeking customer input are: (1) circumstances and criteria for reporting vanpool data to the NTD; (2) reporting for commuter bus, bus rapid transit, and various forms of rail transit modes; (3) clarifying some definitions of certain aerial tramway and rail-related reporting terms; (4) consistent reporting procedures for transit agencies with 9 or fewer vehicles, including those that operate in both urbanized and rural areas; (5) simplified financial balance sheet reporting; (6) rules of attribution for transit agencies operating in more than one urbanized area, or that operate in both urbanized and rural areas; and (7) procedures for responding to any changes in urbanized area status that may occur during the 2011 NTD reporting year.
Official comments on this FTA notice should be made electronically through www.regulations.gov (use docket number FTA-2010-0027]. For further information on the NTD and this particular FTA notice, contact FTA's John Giorgis by phone (202-366-5340) or email (john.giorgis@dot.gov)
Wednesday, September 8, 2010
Access Board Announces Field Hearings on proposed new vehicle guidelines
In July, the Architectural and Transportation Barriers Compliance Board ("Access Board") announced its proposed new vehicle accessibility guidelines for transit vehicles.
A bit of information on that proposal appeared in a previous "NRC Capitol Clips" posting.
If you're interested in speaking out with regard to the Access Board's proposal, take note of two recently announced field hearings. One is in Chicago on September 30, the other is in Washington DC on November 8. Since the notice is fairly brief, the entire announcement (taken from the September 8, 2010, Federal Register) is below....
A bit of information on that proposal appeared in a previous "NRC Capitol Clips" posting.
If you're interested in speaking out with regard to the Access Board's proposal, take note of two recently announced field hearings. One is in Chicago on September 30, the other is in Washington DC on November 8. Since the notice is fairly brief, the entire announcement (taken from the September 8, 2010, Federal Register) is below....
SUMMARY: The Architectural and Transportation Barriers Compliance
Board (Access Board) will hold two public hearings on a proposed
rule to revise and update its accessibility guidelines for buses,
over-the-road buses, and vans.
DATES: The first public hearing will be held in Chicago, IL on Thursday,
September 30, 2010 from 9:30 a.m. to 12 p.m. (CST). The second public
hearing will be in Washington, DC on Monday, November 8, 2010 from
9:30 a.m. to 12 p.m. (EST). To pre-register to testify, please contact
Kathy Johnson at (202) 272-0041 or Johnson@access-board.gov.
ADDRESSES: The first public hearing will be held at the Courtyard Marriott
Magnificent Mile, 165 East Ontario Street, Ontario Rooms B and C, Chicago,
IL 60611. The second public hearing will be held at the Access Board
Conference Room, 1331 F Street, NW., Suite 800, Washington, DC 20004.
FOR FURTHER INFORMATION CONTACT: Jim Pecht, Architectural and Transportation
Barriers Compliance Board, 1331 F Street, NW., Suite 1000, Washington, DC 20004.
Telephone (202) 272-0021. E-mail pecht@access-board.gov.
SUPPLEMENTARY INFORMATION: On July 26, 2010, the Access Board published a
notice of proposed rulemaking (NPRM) in the Federal Register to revise and
update its accessibility guidelines for buses, over-the-road buses, and vans.
75 FR 43748 (July 26, 2010). The comment period on the proposed rule ends on
November 23, 2010. The Access Board will hold two public hearings on the
proposed rule during the comment period. The dates and locations of the
public hearings are provided in this notice. The public hearing locations
are accessible to individuals with disabilities. Sign language interpreters
and real-time captioning will be provided at the public hearings. For the
comfort of other participants, persons attending the public hearings are
requested to refrain from using perfume, cologne, and other fragrances.
To pre-register to testify, please contact Kathy Johnson at (202) 272-0041
or Johnson@access-board.gov.
Friday, August 6, 2010
Senate passes bill to continue Medicaid relief
Federal spending on Medicaid will continue at the higher rates established under the American Recovery and Reinvestment Act (ARRA, or the "stimulus bill"), under legislation passed by the Senate on August 5, which the House is expected to endorse on August 10.
This temporary increase in the Federal Medical Assistance Percentage (FMAP), which is the rate at which the federal government reimburses states for their medical expenses under Medicaid, has been slated to expire December 31, 2010. However, the budgets in almost every state are such that they simply cannot absorb Medicaid expenses at the lower, pre-ARRA, reimbursement rates. The Senate's legislation extends that FMAP increase for 6 months, to June 30, 2011.
Inasmuch as 37 states and the District of Columbia all provide non-emergency medical transportation service to their Medicaid enrollees as a medical expense, reimbursed at the FMAP rate, this legislation will be likely to have a major positive effect on the continued transportation access to health care services for Medicaid enrollees.
Three side issues are of note with regard to this legislation: (1) ARRA also created a program of supplemental "emergency" funding for states' Temporary Assistance for Needy Families (TANF) programs, which continues to be slated for expiration this year; (2) ARRA increased the allowable dollar amount of employees' tax-free transit benefits to $230 per month, but that increase is slated to expire on December 31, 2010; and (3) social media fans have noted that the first announcement calling the House back into session for its August 10 vote on this bill came as a "tweet" from House Speaker Nancy Pelosi, which is the first time that Twitter was used to conduct official business of the House of Representatives.
This temporary increase in the Federal Medical Assistance Percentage (FMAP), which is the rate at which the federal government reimburses states for their medical expenses under Medicaid, has been slated to expire December 31, 2010. However, the budgets in almost every state are such that they simply cannot absorb Medicaid expenses at the lower, pre-ARRA, reimbursement rates. The Senate's legislation extends that FMAP increase for 6 months, to June 30, 2011.
Inasmuch as 37 states and the District of Columbia all provide non-emergency medical transportation service to their Medicaid enrollees as a medical expense, reimbursed at the FMAP rate, this legislation will be likely to have a major positive effect on the continued transportation access to health care services for Medicaid enrollees.
Three side issues are of note with regard to this legislation: (1) ARRA also created a program of supplemental "emergency" funding for states' Temporary Assistance for Needy Families (TANF) programs, which continues to be slated for expiration this year; (2) ARRA increased the allowable dollar amount of employees' tax-free transit benefits to $230 per month, but that increase is slated to expire on December 31, 2010; and (3) social media fans have noted that the first announcement calling the House back into session for its August 10 vote on this bill came as a "tweet" from House Speaker Nancy Pelosi, which is the first time that Twitter was used to conduct official business of the House of Representatives.
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