Transit Lane - Small Urban & Rural Transit Center, North Dakota State University
Vol. 1, Issue 2Fall/Winter 2003

APTA TEA21 reauthorization proposal incorporates many ideas proposed by small transit agencies

Tony Kouneski, vice president, membership - APTA

Picture of Tony KouneskiCongress continues its deliberations of a reauthorization bill of the Transportation Equity Act for the 21st Century (TEA21), the transit industry is well positioned to achieve a successful renewal of the act. Organizations such as the American Public Transportation Association (APTA) and the Community Transit Association of America (CTAA) have put forth strong and persuasive arguments that will lead to more federal support for public transportation. The strength of the transit industry's proposals is in the fact that large and small systems, bus systems and rail systems, and systems from large urban, small urban and rural areas have come together to promote a reauthorization bill that addresses the public transportation needs in communities of all sizes and interests.

APTA's reauthorization proposal has the active support of its diverse membership of large and small urban, suburban and rural communities. APTA's proposal includes a number of recommendations that address specifically the needs of smaller urban areas. Among the recommendations that directly or indirectly benefit smaller urban areas are:

  • Increased Formula Funding for Smaller Systems: APTA's proposal calls for an 87 percent increase in formula funding for urban areas of all sizes. For small urbanized areas, this would increase funding for the program from $334 million in FY 2003 to $626 million in FY 2009. Because of the increasing number of rural systems, APTA's proposal calls for the Section 5311 rural program to receive an additional increment of funding each year, beginning with $35 million in FY 2004 and increasing $3.72 million each subsequent year. Overall, the rural program would increase 110 percent from $240 million in FY 2003 to $504 million in FY 2009.
  • Bonus for High Intensity Small Urbanized Areas: APTA's proposal recommends the creation of a new "High Intensity Small Urbanized Area Formula Program" that would provide formula funding - in addition to funding under the current formula program for small urbanized areas - that would be distributed among those small urban areas that provide service above the average level of service in larger urban areas. The proposed program would be funded at $35 million in FY 2004 and grow to almost $54 million in FY 2009.
  • Aging Bus Replacement Program: APTA's proposal recommends the creation of a new aging bus replacement program for rural areas and for urban areas of less than one million. Under the program, grants would be provided to replace vehicles - buses and vans - that exceed 150 percent of the FTA recommended age for replacement for that size of bus. The proposed program would be funded at $100 million in FY 2004 and grow to almost $156 million in FY 2009.
  • Transitional Authority for Urbanized Areas over 200,000 in population: APTA's proposal would permit urbanized areas that grow from less than 200,000 to more than 200,000 or which were added to urbanized areas of more than 200,000 population as a result of the 2000 Census, to annually use an amount of federal transit funds equal to the amount they were allowed to use for operating purposes in FY 2002 for operating purposes through FY 2009.
  • Other Benefits: In addition to the proposals cited above, APTA's recommendations would provide increased flexibility under drug and alcohol testing programs and charter bus regulations, both of which directly benefit transit operators in small urban areas. APTA also calls for improved coordination or combining of federal reviews and audits to avoid duplication. APTA requests motor fuel tax exemptions for services operated with vehicles with seating capacity of 7-20 passengers, a category of service that currently does not receive the federal fuel excise tax exemption. APTA further calls for the establishment of federal requirements to coordinate services under TANF and Job Access and Reverse Commute (JARC) programs. Finally, APTA's proposal would allow transit grant recipients to procure vehicles and other products from the GSA Schedule, which would help small transit agencies, without great purchasing power, to save money in the purchase of vehicles and other capital items.

Altogether, APTA's recommended plan for TEA 21 reauthorization reflects an outstanding level of input and consideration by America's smaller public transportation systems. The fact that these proposals are strongly endorsed by America's large transit systems is testimony to the fact that they are sound ideas that will enhance the federal program.