Passenger Transport 2010 APTA Annual Meeting - 58

2010 Annual Meeting

Jobless in Chicago, New York, Miami, Dallas, Denver? L.A. Metro Might Have the Answer
BY KIMBERLY UPTON Metro Media Relations Los Angeles Metro Los Angeles, CA

W

ith the nation’s jobless rate gridlocked at 9.6 percent, one of the largest public works projects in history is picking up steam in Los Angeles County—with tremendous implications for unemployment, as well as the public transit industry nationwide. Los Angeles Mayor Antonio Villaraigosa’s 30/10 Initiative for financing transportation projects is moving forward faster than a speeding subway. The proposal to complete a dozen major Los Angeles County transportation projects in 10 years instead of 30 is catching on in Washington, DC, and across the nation. President Barack Obama has called 30/10 a template for transit expansion nationally. In a letter to project supporter Sen. Barbara Boxer (D-CA), Transportation Secretary Ray LaHood said he shares Boxer’s belief “that the 30/10 model—leveraging a comprehensive long-range transportation plan and a sustainable local funding stream—has the potential to transform the way we invest in transportation projects across the nation.” The Los Angeles Times said 30/10 could “become one of the nation’s most significant public infrastructure projects.”

The U.S. Conference of Mayors this summer voted unanimously to support 30/10. “Mayors all over the country told me they see that 30/10 could be a national financing model to enable them to build their own transportation projects faster,” Villaraigosa said. The Los Angeles Metro Board of Directors voted unanimously to approve the proposal. Also supporting 30/10 is the chamber of commerce and nearly all of the region’s Democratic lawmakers, including Sen. Dianne Feinstein (D-CA). Also, thousands of union members recently rallied at Los Angeles City Hall, calling for the jobs the plan would create. The 30/10 project is gaining momentum with citizens because of its jobcreation potential. For transit agencies across the country, 30/10 offers the possibility of a federal funding mechanism they can use to fast-track their essential projects. And a propelling factor in Washington is, as Villaraigosa said: “We’re seeking to accelerate our projects, funded largely through a new, dedicated transportation sales tax, through an innovative new federal-local partnership.” The plan asks Congress to create a national bond subsidy and direct loan program that can channel money to Metro for transportation building now, when the need for jobs is critical. 30/10 would use the half-cent-per-dollar sales tax revenue generated by L.A. County

voter-approved Measure R to pay back the federal loans. It’s estimated that 30/10 would create 166,000 construction jobs and at least 2,800 permanent operations and maintenance jobs on transit projects sprinkled throughout the county, including the Westside Subway Extension, the Regional Connector, the Crenshaw Line, and an extension of the Eastside Gold Line. Completing the projects in 10 years rather than 30, as originally outlined in the Long Range Plan, would reduce construction costs by an estimated 25 percent from avoided cost inflation alone. Further, the recession is prompting lowered bids for construction projects because there is less work available. On the environmental side, the 12 projects comprising 30/10 would eliminate more than half a million pounds of emissions, save 10.3 million gallons of gasoline, eliminate 191 million vehicle miles, and expand the number of transit boardings by 77 million annually.

Moving Forward
Villaraigosa and Boxer recently met with local and national transit experts to discuss how to push the plan forward. One of the points Villaraigosa emphasized is that higher subsidized direct loans and bond interest rate subsidies would not replace existing federal funding mechanisms; instead, they would be new financing tools to encourage

local governments to bring more of their money to the table. Projects like those supported by Measure R tax dollars would be prime candidates for 30/10, quickly expanding existing transit systems at a time when jobs, mobility, and clean air are key issues. “30/10 could fundamentally change transit in Southern California, transforming Los Angeles from the car capital of the world to the transit capital,” said Metro Chief Executive Officer Art Leahy. “And once established, it could fundamentally change transit across the nation as other agencies use it to leverage tax dollars and return to the business of building out the transportation infrastructures in their regions.” Although momentum is building, can Congress move quickly enough? As the Los Angeles Times said recently: “30/10 is a classic public infrastructure initiative, one that addresses urgent needs by creating a springboard for future private sector growth. The next Congress may be an even more bitterly divided and irrationally partisan body, one in which even projects such as this one, with its obvious contribution to the common good, will face an uncertain future.” That’s why Villaraigosa is pushing— but 30/10 needs national bipartisan support for quick passage. The question, then, is whether bipartisan support is currently possible—even when the coast-to-coast benefits are clearly obvious. Stay tuned to find out.

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Passenger Transport 2010 APTA Annual Meeting

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