From: "nigel allen" <nigel.allen@canrem.com>
Subject:  Transit Association Statement on First Anniversary of ISTEA
Reply-To: "nigel allen" <nigel.allen@canrem.com>
Organization: Canada Remote Systems
Distribution: rec
Date: 16 Dec 92 19:37:09 EST


Here is a press release from the American Public Transit Association.

 Transit Association Statement on First Anniversary of ISTEA
 To: Transportation Writer
 Contact: Chip Bishop of the American Public Transit Association,
          202-898-4114

   WASHINGTON, Dec. 16  -- Following is the statement of 
Jack R. Gilstrap, executive vice president, American Public 
Transit Association, on the first anniversary of the Intermodal 
Surface Transportation Efficiency Act:

   One of our new government's highest priorities should be the
expansion of investment in our nation's transportation
infrastructure, including public transit.  ISTEA shows the way.
ISTEA is a landmark law.  For the first time, it calls for a truly
intermodal surface transportation network and requires better
cooperation among the modes.  It budgets increased spending on both
highways and transit to move people and goods more efficiently, and
grants states and localities broad new authority to use federal funds
for mobility improvements as they see fit.
   For the most part, ISTEA is working well.  Transit funds are being
obligated on an acceptable timetable and, as promised, these funds
are producing jobs at the rate of about 6,000 per $100 million spent.
   Local matching shares between modes are now equitable.  There is
better transportation planning locally and more coordination with air
quality and land use policies.  About $300 million in flexible funds
were set aside by the federal transit administration in the last
quarter of fiscal year 1992 for transit improvements selected
locally.
   But unfortunately the level of transit appropriations in the
current fiscal year falls far short of what ISTEA budgeted.
Accordingly, the transit community's No. 1 priority is to achieve
full funding of ISTEA this year, most likely through supplemental
appropriations.  We need the full authorization of $5.4 billion not
just the $3.8 billion appropriated.  The difference is more than
dollars, it is jobs -- 93,000 of them.
   The first chart illustrates our shortfall: 31 percent overall,
40 percent in the formula program, 23 percent in operating assistance
and 15 percent in the major capital program.  Under-funding of this
size undermines the goals of ISTEA.  It limits our ability to move
people to and from jobs; it leads to service reductions and fare
increases.
   Make no mistake about it, transit agencies can and will spend
additional federal money.  Our members told us in a recent survey
that they have projects and purchases worth $7 billion ready to go in
this fiscal year.  Seven billion dollars translates into more than
400,000 new, full-time jobs.
   As this chart shows, most of the funds would be spent to replace
over-age buses, vans and rail cars.  Right now, nearly a quarter of
our fleet has outlived its usefulness and ought to be replaced.  At
the same time, the bus building industry is operating at 75 percent
under capacity.
   We would invest added funds in new systems and other expansion
plans, improvements to old rail systems, and in operations and
maintenance to safeguard the federal investment.
   Clearly, these figures show a dramatic need, a huge pent-up
demand.  As Congress and the Clinton administration develop their
economic stimulus package, we urge that investment in transportation
systems -- transit and highways -- be a key part of it.  And the
place to start is by honoring the funding pledge of ISTEA.
   APTA is the international association of operating transit
authorities, their suppliers and other advocates of improved transit
service.
   Note: For further information and interviews contact Chip Bishop
of APTA at 202-898-4114.
    ------
                 Shortfalls of Transit Funds FY 1993
                      Appropriations vs. ISTEA

 Total Federal Program            31 Percent
 Formula Funds                    40 Percent
 Operating Assistance             23 Percent
 Major Capital                    15 Percent

 Jobs                             93,000 (includes 5,000 jobs
                                          from direct federal
                                          spending for research
                                          and administration)

              Additional Federal Funds Transit Can Spend
                           This Fiscal Year

 Rail and other
   modernization              $1.2 billion
 Operations                   $1.4 billion
 New buses, vans
   and rail cars              $2.7 billion
 New systems and
    other                     $1.7 billion

 Total                        $7.0 billion (405,000 jobs)

   (Source: American Public Transit Association, Dec. 1992)
 -30-
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