1 AASHTO SCOPT/MTAP 2009 Winter Meeting Legislative Update Ron Epstein Chief Financial Officer New York State Department of Transportation December 2, 2009

2 Authorization and Appropriations On October 31 a second Appropriations Continuing Resolution was enacted which extended SAFETEA-LU through December 18. Highway apportionments continue to be 30 percent below FFY 2009 apportionment - reflecting two rescissions that were imposed on the highway program in FFY The Federal Transit Administration continues to withhold the distribution of aid under the extensions.

3 Authorization and Appropriations Increased unemployment is spurring discussion of a longer term (six-month to two-year) stop-gap surface transportation authorization as part of a larger jobs bill. House Transportation and Infrastructure Chairman Oberstar has not yet fully embraced this idea. Financing such a bill remains an impediment. Potential financing ideas: Uncommitted Taxpayer Relief (TARP) funds. Transaction fee on Wall Street activities. Front end with General Funds.

4 Authorization and Appropriations Jobs are expected to be a major theme of the President’s State of the Union address in late January. Transportation continues to lag behind health care, climate change, other. Treasury-bills may hold key to addressing debt/infrastructure.

5 Transportation Update What are the prospects of Public Transportation getting a larger share of federal funding?

6 Transportation Act Funding ISTEATEA-21SAFETEA-LU Total Apportionments/ Allocations $24.1B$35.8B (48.9%) $52.0B (45.3%)

7 SAFETEA-LU - Formula Program Share Program Breakdown of funds among programs ISTEA/ TEA-21 SAFETEA- LU Urbanized Formula 91.23%87.38% Non- Urbanized Formula 6.37%9.79% Elderly & Disabled 2.40%2.84%

8 SAFETEA-LU - Capital Investment Program Share Program Breakdown of funds among programs ISTEA/ TEA-21 SAFETEA- LU New Starts40%41% Fixed Guideway 40%37% Bus/Bus Facility 20%22%

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10 Public Transportation Funding - Historical/Estimated Trend

11 Importance of Funding Guarantee…

12 Gas Tax… ?

13 Performance of Gas Tax

14 Solvency – Mass Transit Account

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16 Same Pig; Different Look…

17 What are the implications of reauthorization being put off for 18 ‐ 24 months? ISTEA was enacted on December 18, 1991, 2 1/2 months after the previous law expired. TEA-21 was enacted on June 9, 1998, 8 months after ISTEA expired. SAFETEA-LU was signed into law on August 10, 2005, nearly two years after TEA-21 expired. Required 13 separate short- term extensions Two-year bill - front-loaded with general funds to jump-start transportation spending??? Next-Tea – at least not until after mid-term elections???

18 What are the implications of reauthorization being put off for 18 ‐ 24 months? Cash flow Cash flow… “In the event of a short-term extension of SAFETEA-LU (six months or less) Congress should direct FTA to apportion available funds within 21-days of enactment”

19 What are the implications of reauthorization being put off for 18 ‐ 24 months? Short-term extensions contribute to a 30% decline in highway funding to states – limit new opportunity to flex funding to transit Systems holding back on decisions and investments in longer- term projects Uncertainty is making it more difficult for transportation companies to obtain financing credit Jobs in the transportation sector will be lost next year without an infusion of funds and longer-term predictability.

20 What happens if we don't get increased federal funding?

21 Ron Epstein Chief Financial Officer New York State Department of Transportation 50 Wolf Road, POD 5-4 Albany, New York (518) Questions??