BLUEPRINT FOR JOBS AND ECONOMIC GROWTHTHROUGH TRANSPORTATION INVESTMENTS

Janette Sadik-KhanCommissioner, New York City Department of TransportationNACTO President

Sam AdamsMayor, Portland (OR)NACTO 1st Vice President and Secretary

Wylie BearupDirector, Phoenix Streets Transportation DepartmentNACTO 2nd Vice President

Gabe KleinCommissioner, Chicago Department of TransportationTreasurer

Ron ThanielExecutive Directorronthaniel@nacto.org

NACTO encourages the exchange of transportation ideas, insights and practices among large cities while advocating for a federal transporta-tion policy that prioritizes investment in infrastructure in the nation’s cities and their metropolitan areas - home to a majority of Americans and hubs of economic activity. Large city transportation officials are investing in innovative public transportation, bike, pedestrian and public space projects to create more sustainable, livable, healthy, and economically competitive cities.

National Association of City Transportation Officials55 Water St., 9th FloorNew York, NY 10041www.nacto.org212 839-6421

© Copyright 2012 National Association of City Transportation Officials

Cover: Second Avenue Subway Construction, New York City, 2011

Rebuild America’s Roads, Bridges, Transit and Freight SystemsThe nation’s cities and their metropolitan areas account for nearly 90.1 percent of the nation’s gross domestic product and wages, and 86.2 percent of all jobs.1 Our roads, bridges, transit and freight sys-tems are the foundation of our economy and crucial to tomorrow’s economic growth. Yet, today we are investing approximately two percent of our GDP on infrastructure; Europe and China are invest-ing approximately five percent and nine percent. Growth in India, China, Brazil and other surging economies is being fueled by invest-ment in urban transportation systems while the U.S. lags behind. As a percentage of U.S. GDP, investment in infrastructure today is half what it was in 1960.2 NACTO is urging the federal government to answer these challenges by prioritizing transportation investments that rebuild critical roads and bridges and address freight issues. Equally as important is to preserve and expand bus, rail, and ferry transit systems, intercity passenger rail, and to maintain funding for bicycle and pedestrian projects.

1 The U.S. Conference of Mayors, “ U.S. Metro Economies,” January 2010.

2 The Department of the Treasury with the Council of Economic Advisers, “An Economic

Analysis of Infrastructure Investment,” October 11, 2010.

According to the U.S. Department of Transportation, of the 600,905 bridges across the country as of December 2008, 72,868 (12.1%) were categorized as structurally deficient and 89,024 (14.8%) were categorized as functionally obsolete.

American Society of Civil Engineers Report Card, 2009

Take Care of the Basics

We urge the federal government to support a significantly expanded and well-funded mode-neutral State of Good Repair program that targets resources where they are needed most – in the upkeep of the older, most heavily-used roads, bridges, transit and freight systems, before their failures require costly and disruptive shut-downs.

Invest in Public Transit to Meet the Nation’s Future Mobility Needs

We must increase federal funding and reduce project delivery time for bus, rail, and ferry transit projects to meet future mo-bility needs in cities. The unequal match requirement for new road projects versus new transit projects is a double standard that should be eliminated. The FTA evaluation criteria for new transit projects should weigh all benefits comparably, including economic development, energy savings, increased mobility and access, and congestion relief. The FTA should eliminate the requirement that projects be rated based on outdated methods. We urge the federal government to place intercity passenger rail on equal footing with other surface transporta-tion programs by providing dedicated federal funding.

Our roads, bridges, transit and freight systems are the foundation of our economy and crucial to tomorrow’s economic growth.

Direct Road and Bridge Projects to Large Cities, Home to the Nation’s Highest Numbers of Unemployed and the Greatest Transportation Challenges

The federal government should create a new program that enables large cities to enter into Direct Aid agreements with states to direct-ly administer FHWA programs such as STP, CMAQ, and Safety. One of the most difficult issues facing the modernization of urban roads and bridges is the mismatch between the places with problems and the agencies with funds to address them. Large cities need to be able to put road and bridge transportation funds to work faster and more efficiently to rebuild aging and crumbling infrastructure and put people back to work. A direct-aid relationship between the U.S. Department of Transportation and large cities can reduce red tape, increase flexibility, and speed project delivery. NACTO member agencies often have the same or greater staff capacities and technical expertise as many state departments of transporta-tion, yet are subject to the same pass-through rules as small towns. These processes generally add little or no value to urban projects but invariably add months or years to project delivery.

Maintain Federal Commitments to Metropolitan Areas

The federal government should reject efforts in the surface trans-portation authorization debate to lower the percent of transporta-tion funds that would be sub allocated by population to metropoli-tan areas.

The nation’s cities and their metropolitan areas account for nearly 89.8 percent of the nation’s gross domestic product and wages, and 85.7 percent of all jobs.

Getting Goods to Markets

We call on the federal government to enhance freight mobil-ity to alleviate chokepoints, and support fuel efficient modes of freight such as rail, barge and ship, and plan for a national system that supports economic development while controlling hot spots for negative impacts of freight movement.

Expansion of Innovative Financing to Build Transportation Projects We urge the federal government to encourage more private sector investment such as a national infrastructure bank, Build America Bonds, and TIGER to complement the federal government’s commitment to public investment in infrastructure. Improve the Transportation Infrastructure Finance and Innovation Act (TIFIA) loan program in the following ways: significantly increase annual funding; increase the maximum TIFIA share of project financing from 33% to 49%; allow USDOT to make upfront contingent credit commitments for programs of related projects; and authorize US-DOT to offer a limited interest rate hedge to help protect cities and project sponsors from financing cost increase risk.

One of the most difficult issues facing the modernization of urban roads and bridges is the mismatch between the places with problems and the agencies with funds to address them.

Promote Energy Efficient and Environmentally Sustainable Transportation InvestmentsPromote energy efficiency and independence through increased investments in bus, rail, and ferry public transit use, ride-sharing, bicycling, walking and efficient goods movement.

Fund Walking and Bicycling Programs and Projects

Support improvements to pedestrian and bicycling facilities through dedicated, streamlined funding and a strong mandate.

While land use and zoning decisions remain under the authority of local governments, the federal government should incentivize more economically efficient and more sustainable development by funding transportation projects that support smart growth land use decisions.

(L-R) NACTO President and NYC Transportation Commissioner Janette Sadik-Khan, US DOT Secretary Ray LaHood, and U.S. Rep. Earl Blumenauer (OR)

Incentivize Integration of Transportation and Land Use

The federal government should promote the integration of transportation, housing, land use, economic development, and the environment. Congestion, often blamed on inadequate transpor-tation systems, is usually caused by poor land use development. While land use and zoning decisions remain under the authority of local governments, the federal government should incentivize more economically efficient and more sustainable development by funding transportation projects that support smart growth land use decisions. It should also introduce incentives to reduce transportation related emissions of greenhouse gases. We should spur innovation by rewarding cities at the forefront of combating climate change to spur innovation.

Build 21st Century Cities through the Planning Process

Project selection under the metropolitan planning process should be performance based, incentivizing those that provide conges-tion relief, access to transit, energy conservation and efficiency, air quality, and reduced greenhouse gas emissions. Projects should be required to coordinate transportation and land use using transit-oriented development with the measurement of improved mobility of goods and people, increasing affordable housing investment near transit and employment centers.

NEW YORK CITYMichael R. Bloomberg, MayorJanette Sadik-Khan, Transportation CommissionerMetropolitan Area Population: 18,897,109

PORTLANDSam Adams, MayorCatherine Ciarlo, Transportation DirectorMetropolitan Area Population: 2,226,009

PHOENIxGreg Stanton, MayorWylie Bearup, Street Transportation DirectorMetropolitan Area Population: 4,192,807

ATLANTAKasim Reed, MayorRichard Mendoza, Public Works CommissionerMetropolitan Area Population: 5,268,860

BALTIMOREStephanie Rawlings-Blake, MayorKhalil Zaied, Transportation DirectorMetropolitan Area Population: 2,710,489

BOSTONThomas M. Menino, MayorThomas J. Tinlin, Transportation CommissionerMetropolitan Area Population: 4,552,402

CHICAGORahm Emanuel, MayorGabriel Klein, Transportation CommissionerMetropolitan Area Population: 9,461,105

DETROITDave Bing, MayorRon Freeland, CEOMetropolitan Area Population: 4,296,250

NACTO Member Cities

HOUSTONAnnise D. Parker, MayorJeffrey Weatherford, Deputy Director, Traffic and TransportationMetropolitan Area Population: 5,946,800

LOS ANGELESAntonio R. Villaraigosa, MayorJaime De la Vega, General Manager of TransportationMetropolitan Area Population: 12,828,837

MINNEAPOLISR.T. Rybak, MayorJon Wertjes, Director of Traffic and Parking ServicesMetropolitan Area Population: 3,317,308

PHILADELPHIAMichael A. Nutter, MayorRina Cutler, Deputy Mayor of Transportation and UtilitiesMetropolitan Area Population: 5,965,343

SAN FRANCISCOEdwin M. Lee, MayorEdward Reiskin, Transportation DirectorMetropolitan Area Population: 4,335,391

SEATTLEMichael P. McGinn, MayorPeter Hahn, Transportation Director Metropolitan Area Population: 3,439,809

WASHINGTON, DCVincent C. Gray, MayorTerry Bellamy, Transportation DirectorMetropolitan Area Population: 5,582,170

Ron ThanielExecutive Director55 Water St. 9th FloorNew York, NY 10041212 839-6421www.nacto.org