By Steve Hymon, July 2, 2014
The first is bad news. Due to Congress’ inability to pass a long-range transportation funding bill, the Highway Trust Fund is going broke and states on average could lose 28 percent of federal funding if nothing is done. Blah. If this keeps up, we’ll have more soon on potential impacts to Metro.
In case you’re wondering about a solution: Congress needs to either raise the federal gas tax (it hasn’t been increased in two decades) or find other revenues to keep the Highway Trust Fund in the black.
The second is good news: state legislation that would allow bike racks that could hold three bikes on 40-foot buses is moving along nicely.
U.S. Department of Transportation Announces Planned Cuts In Highway Trust Fund Payments
As shared in a Legislative Alert yesterday, the Congressional Budget Office is estimating that it will take over $8 billion in additional revenues to keep the federal Highway Trust Fund solvent through December 31, 2014.
Earlier today, U.S. Secretary of Transportation Anthony Foxx issued letters to major transportation stakeholders around the nation outlining how the U.S. Department of Transportation anticipates Highway Trust Fund payments will be distributed if Congress does not act to make the fund solvent in the coming weeks.
Secretary Foxx stated that the Federal Highway Administration will begin implementing cash management procedures starting August 1, 2014. No specific date has yet been set to implement cash management procedures for the Mass Transit Account.
States will receive their first notice of available funds on August 11, 2014 and thereafter every two weeks as the federal gas tax receipts are deposited into the Highway Trust Fund.
According to Secretary Foxx, “on average, states will see a 28 percent drop in federal transportation dollars. Depending on how they manage the funds, each state will feel the effects differently, but everyone will feel the impact sooner or later.”
To read the correspondence from Secretary Foxx on the federal Highway Trust Fund please click here. We are currently compiling a document that will be shared with all Board members, that includes an assessment of what a slowdown in federal transportation funds would mean for our agency.
State Legislative Update
AB 2707 (Chau) – Three Position Bike RacksYesterday the Assembly approved AB 2707, Metro’s sponsored bill, which would allow three position bike racks to be installed on our 40’ buses, passed the Senate floor unanimously 36 to 0. The bill now heads back to the Assembly floor for concurrence vote.