1. NARC B UILDING R EGIONAL C OMMUNITIES Regions Respond Tampa Bay Regional Planning Commission Fred Abousleman Executive Director National Association of Regional Councils

2. NARC B UILDING R EGIONAL C OMMUNITIES The worlds been changing for 30 years and caught us in the last three. How bad……? "We're basically sliding toward Third World status," said Rep. Peter DeFazio, D-Ore. "It's pathetic." DeFazio chairs the House subcommittee on highways and transit. Jeff Kosseff, The Oregonian Sunday June 29, 2008, 12:44 PM

3. NARC B UILDING R EGIONAL C OMMUNITIES National Snapshot CBO estimates the Iraq War will cost $1 trillion to $2 trillion US economy is not in a technical recession, but shows no sign of short term revival = federal, state and local budget constraints and cuts American Society of Civil Engineers has given our nation's public infrastructure a D- minus, estimating that it will cost $1.6 trillion over the next five years just to repair the infrastructure we currently have. The National Surface Transportation Policy and Revenue Study Commission calculated that it will take $225 billion just to maintain the existing system over the next 50 years. Meanwhile, OMB predicts a $3.2 billion shortfall in the Highway Trust Fund by 2009. We are falling behind Japan, China, India, and the European Union in investing in infrastructure improvements to support the economy More than 72,000 miles of municipal water and sewer pipe are more than 80 years old, threatening the public health and economies of communities large and small. The 36 million gallons a day that leak from the 85-mile-long Delaware Aqueduct in New York state amounts to more than 1 billion gallons a month. The daily leak in the tunnel would meet the daily demands of drought-ravaged Raleigh, N.C.

4. NARC B UILDING R EGIONAL C OMMUNITIES Federal Investment The U.S., with the world’s largest economy, spends less than 1% of GDP on infrastructure as compared with countries like China, 9%, and India, 3.5%. Federal spending on infrastructure has hovered around 3% of total expenditures in the federal budget. From 1987 onward, infrastructure spending by the federal government and by states and localities has grown in real terms by 1.7% and 2.1%, respectively. Infrastructure spending by states and localities has accounted for around three-fourths of total spending. Public spending on infrastructure totaled just over $312 billion in 2004 – federal spending was $73.5 billion, about 24%. Before the late 1980s, federal infrastructure spending accounted for 10% or more of the budget from 1959 through 1966. The subsequent decline of that share occurred in part because of a rise in spending on domestic programs unrelated to infrastructure— i.e. entitlement programs: Medicare, Medicaid and Social Security (more than half federal spending in 2004)

5. NARC B UILDING R EGIONAL C OMMUNITIES Where Does FL Stand? 1830 census - Florida had 37,000 people By 2025 Florida is expected to be the 3rd most populous state, with a population of 20.7 million. Florida will add about 180,000 new residents in 2008 and 200,000 in 2009 Florida has one of the biggest and longest running growth averages in the country Florida's economy declined at its sharpest rate in 16 years during the second quarter, and the current downturn likely will exceed the 1990-1991 recession in the state. Florida slipping relative to Texas, North Carolina and Georgia in competitiveness. The continued growth of the state has outpaced infrastructure improvements Florida will need to spend 200 billion dollars over 20 years to maintain and improve its infrastructure.

6. NARC B UILDING R EGIONAL C OMMUNITIES Freeway Congestion

7. NARC B UILDING R EGIONAL C OMMUNITIES Airports Over 3000 public airports

8. NARC B UILDING R EGIONAL C OMMUNITIES Top Port Totals (over 200 ports in US) Total Calls000 dwt Los Angeles/Long Beach5,426243,752 New Orleans, LA 1 5,650237,505 Houston, TX6,327215,467 New York, NY4,817188,006 San Francisco, CA 1 3,676165,601 Philadelphia, PA3,240132,469 Hampton Roads, VA 1 2,660111,365 Beaumont, TX1,26886,392 Corpus Christi, TX1,45584,893 Charleston, SC2,23482,167 LOOP Terminal, LA30779,650 Columbia River, WA 1 2,21977,896

9. NARC B UILDING R EGIONAL C OMMUNITIES Construction Costs Project cost overruns up to 60% Why? –No material in some cases We, China and India have glutted the world’s cement stock. Production will not meet needs until 2010 –Predicated upon a slowdown in Chinese and Indian construction. No domestic cement supply No capacity –No labor in others In the SW – there isn’t enough labor to meet project demands Contractors have stopped bidding

10. NARC B UILDING R EGIONAL C OMMUNITIES Disasters - mitigation Post Katrina/Rita –$5 billion and counting –Total cost may reach $150 billion Does not account for business and population displacement –CA fires, FL Hurricanes, droughts (may be species killer in Southwest) NARC heavily involved in water issues – including a massive investment in water infrastructure. Treasury solvency Only available money for recovery is in domestic discretionary accounts –i.e. transportation, housing, aging, education, social programs We are fighting to keep domestic programs funded

11. NARC B UILDING R EGIONAL C OMMUNITIES Future Trends Asia Chinese and Indian Competitiveness Purchasing power Goods production Shipments Ability of our system to absorb? –Thin

12. NARC B UILDING R EGIONAL C OMMUNITIES Basic Numbers Chinese Freight Capabilities will grow by 35% over the next 10 years. Ours – 7% Our current system CANNOT meet expected global trade demands

13. NARC B UILDING R EGIONAL C OMMUNITIES Only Getting Bigger Largest container ship The container ship with the largest declared capacity is the 11,000 TEU Emma Mærsk. Bigger ships under construction Largest Cargo Airplane Antonov - AN-124 Ruslan Up to 150 tonnes of cargo can be carried.

14. NARC B UILDING R EGIONAL C OMMUNITIES Expansion Panama Canal Expansion: $5.25 billion. Double Volume by 2025 $685 Million Vancouver Port Expansion (plus millions in other facilities) Hutchison Whampoa Ltd. expansion of Mexican port facilities –Hutchison Port Holdings (HPH) is the world's leading port investor, developer and operator that operates across Europe, the Americas, Asia, the Middle East and Africa –It operates in five of the seven busiest container ports in the world, handling 13% of the world’s container traffic U.S. is under-investing!

15. NARC B UILDING R EGIONAL C OMMUNITIES NARC Programs Economic and Community Development EnvironmentTransportation EDAWaterHighway HousingAir QualityTransit AgingBrownfieldsRail Base ClosureClimate ChangeAviation WorkforceEnergyMaritime Homeland Security – Planning and Evacuation Management

16. NARC B UILDING R EGIONAL C OMMUNITIES 2008-2009 Legislation TransportationEconomic Development Homeland Security Environment SAFETEA-LU Reauthorization (expires 9/2009) Infrastructure Investment Commission (NARC included) FAA Reauthorization Transportation and Housing Choices Act Nat’l Infrastructure Bank Highway Trust Fund fix EDA Reauthorization (expires 9/2008) ARC Reauthorization (expires 9/2008) Housing Relief (signed into law) National Innovation and Job Creation Act of 2008 Smarter Funding for All America's Homeland Security Act NARC Grant Effort Climate Change Water Trust Fund Multiple Energy Efficiency Bills

17. NARC B UILDING R EGIONAL C OMMUNITIES What to watch for Transportation/Infrastructure Support Infrastructure funding bills and initiatives Reauthorization of Surface Transportation Bill –Funding –Program structure –Delivery –Regions respond: –Force congress/administration to fully fund transportation –Increase authority – local/regional –Modal integration

18. NARC B UILDING R EGIONAL C OMMUNITIES Economic/Community Development Authorize EDA USDA Rural Development HUD – questions about role in housing/mortgage crises Workforce Commissions Work to reauthorize EDA Work with locals and states on housing issues Innovative work force programs and policies Get commissions up and running

19. NARC B UILDING R EGIONAL C OMMUNITIES Security Where does all the money go? Monitor urban grants Regional Grants on coordinated planning Regional innovation in evacuation planning

20. NARC B UILDING R EGIONAL C OMMUNITIES Environment Water Climate Change Air Quality Energy Demand Congress fund water infrastructure Get ahead of the climate change curve Energy efficiency programs Conservation programs – green infrastructure, green building

21. NARC B UILDING R EGIONAL C OMMUNITIES Global Warming and Energy Carbon may be the tax of the future –Already being discussed in Congress Regions may have to account for the effects of global warming through new measures Energy is and will be in play –Are we energy efficient? –Are we sustainable? –Are we safe and secure? (Urban/Rural) Air Quality and EPA Standards – tightening

22. NARC B UILDING R EGIONAL C OMMUNITIES What Will Happen in 2009?

23. NARC B UILDING R EGIONAL C OMMUNITIES FY09 Appropriations All bills, except Mil-Con and Defense, to be rolled into CR – unlikely work will be done on others in September Majority of domestic spending programs within NARC issue areas receive plus-ups from Congress over President’s request

24. NARC B UILDING R EGIONAL C OMMUNITIES Second Stimulus Senator Byrd (D-WV) to introduce 2 nd Stimulus package = $24B in aid $10B infrastructure = $3.75B highways; $892M mass- transit; $100M Amtrak; $200M airport improvements; $1.5B energy initiatives $10B disaster relief = $3B Hurricane Katrina; $910M wildfires in West; $1.8B FEMA; $1.82B CDBG $4B = other, including low income heating/cooling assistance; science; etc Speaker Pelosi (D-CA) talking about 2 nd Stimulus worth $50B Unlikely either Chamber will have a bill hit the floor

25. NARC B UILDING R EGIONAL C OMMUNITIES 2008-2009 Key Players President?? U.S. Senate Reid (D-NV)Durbin (D-IL) Byrd (D-WV) Boxer (D-CA)Inhofe (R-OK)Baucus (D-MT) Inouye (D-HI) Clinton (D-NY)Cochran (D-MS) Lieberman (I-CT) Hutchison (R-TX)McConnell (R-KY)

26. NARC B UILDING R EGIONAL C OMMUNITIES Key Players continued U.S. House of Representatives Pelosi (D-CA)Oberstar (D-MN)Mica (R-FL)Obey (D-WI)Dingell (D-MI) Brown (D-FL) Thompson (D-MS)DeFazio (D-OR)Markey (D-MA)Johnson (D-TX) Lewis (R-CA) Rahall (D-WV) Rangel (D-NY) Blumenauer (D-OR) Hoyer (D-MD) Boehner (R-OH) Mollohan (D-WV) Petri (R-WI)

27. NARC B UILDING R EGIONAL C OMMUNITIES Key Players continued U.S. Governors Rendell (D-PA)Corzine (D-NJ)Schwarzenegger (R-CA)Crist (R-FL)Culver (D-IA) Granholm (D-MI)Kaine (D-VA)Pawlenty (R-MN) Perry (R-TX) Sebelius (D-KS) Patrick (D-MA)Strickland (D-OH)

28. NARC B UILDING R EGIONAL C OMMUNITIES 2009 Legislative Focus SustainabilityIraq WarInfrastructureECONOMY Energy Independence & Security Climate Change Domestic Security & Preparedness

29. NARC B UILDING R EGIONAL C OMMUNITIES Political landscape 2008 – 2012 Election Congress adjourns President needs 1-2 years – up to speed Sets the stage for 2012 Prediction –Congress/President engulfed in war (3-10 years) and economy (3 years) –Want to ensure party majority –Extremes will divide congress cause gridlock –No significant legislation passed (2-5 years)

30. NARC B UILDING R EGIONAL C OMMUNITIES Regions Respond Traditional decision making not working – takes too long, too many involved Lack of leadership and vision at the top Transportation, infrastructure, other issues are both vertical and horizontal – regions can align needs

31. NARC B UILDING R EGIONAL C OMMUNITIES Regions Respond Creating their own taxing structures –San Diego, Phoenix, others… On the cutting edge –Being leaders –Out in front of ideas Fiscally constrained Help set priorities –Between state and locals –Among locals

32. NARC B UILDING R EGIONAL C OMMUNITIES Other Regions as entrepreneurs Service delivery Business models Local cost savings Joint purchasing Managing regional assets

33. NARC B UILDING R EGIONAL C OMMUNITIES NARC –Support Regions – urban and rural – large and small –Will continue to advocate for Regions as primary service delivery agents –Will continue to advocate for the primacy of local government and elected officials –Will continue to advocate for a PARTNERSHIP with states and the feds - not a subservient relationship

34. NARC B UILDING R EGIONAL C OMMUNITIES NARC Outreach and Positions Multiple regional meetings Committee meetings Spectrum of ideas –Devolution – stronger federal program Innovation – Empowerment – Streamlining - Consistency We support a regional revolution

35. NARC B UILDING R EGIONAL C OMMUNITIES A New National Plan Today, the challenges of the 21 st Century – global warming, dwindling oil reserves, growing insecurity in the Middle East, and an uncertain global economy – require a renewed national focus on the infrastructure that is essential to our cities, our rural communities, and our economy. Unfortunately, we have neglected the state of America's infrastructure far too long, threatening our economic prosperity and the future of our communities, urban and rural. Congressman Earl Blumenauer “A National Plan to Reinvest In America”