Congress approves federal transportation bill; new state spending plan needed to ‘bring the money home’ - Metropolitan Planning Council

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Congress approves federal transportation bill; new state spending plan needed to ‘bring the money home’

Legislation provides $1.6 billion in federal funding for critical road, freight, and transit projects in Illinois. The state will leave these funds in Washington unless it passes a new capital package to replace Illinois FIRST.

Business Leaders for Transportation lauded Congress for its efforts to finalize the long awaited federal transportation bill that will earmark federal funds for surface projects to attack traffic gridlock. The Safe, Accountable, Flexible, and Efficient Transportation Equity Act: A Legacy for Users or SAFETEA-LU is a $286.4 billion, multi-year road, bridge and mass transit package that is being hailed as first steps toward upgrading the nation’s transportation infrastructure.

SAFETEA-LU promises each state at least a 19 percent increase in funds over what they received under TEA-21, and guarantees that by 2008 every state will get back at least 92 percent of what it contributes through federal gasoline taxes to the Highway Trust Fund. Under TEA-21, the minimum return guarantee was 90.5 percent. The bill contains more than $50 billion for transit programs, mainly bus and train projects, and $6 billion for transportation safety.

Illinois is slated to receive about $1.2 billion a year in federal highway funds through 2009, an increase of $309 million annually. The state's annual increase of 33 percent would place Illinois in the top 10 states for percentage increases. Over the five-year life of the bill, public transit agencies in Illinois will collectively receive a 28 percent hike in federal dollars, totaling about $500 million, not counting money appropriated for particular long-term projects. And, under a new provision of this legislation, Illinois will receive close to $400 million in funds earmarked for projects of national and regional significance.

“Transportation investments in northeastern Illinois and around the state have been on hold for more than two years as federal legislators have debated a new surface transportation bill,” said MarySue Barrett, president of the Metropolitan Planning Council, one of the three organizations that co-lead the Business Leaders coalition. “While we await President Bush’s signature on the bill, our state leaders and transportation decision makers must move quickly to create a package to replace the expired Illinois FIRST and maintain our state’s competitive edge in securing federal dollars.”

Since Illinois FIRST expired in 2004 (and actually depleted most of its resources in 2003), the state has been without a capital investment package. Rapid growth has increased the demand for public transit not only in the Chicago region but in metropolitan areas across the country. Competition for federal transit dollars will be fierce, intensifying the need for Illinois decision makers to work diligently toward a new state capital investment package.

Business Leaders for Transportation ardently supports a strong regional transportation network that efficiently moves people and goods and aids in a healthy quality of life for the region’s residents. Barrett noted that “as the transportation hub of the nation, it is critical that state leaders make creating a new state funding package a priority in the next legislative session otherwise, we are doomed to leave federal funds in Washington.”

Click here to view the full text of SAFETEA-LU.

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