Rep. Carnahan & Rep. LaTourette praised for leadership
Media Contacts: David Roscow, 202-537-1645
Washington, DC - With the majority of transit systems across the U.S. continuing to cut vital service and raise fares, a new bill would give transit agencies much needed flexibility in deciding how they use federal funds argues the Amalgamated Transit Union (ATU).
Under current law, only transit systems located in urban areas under 200,000 in population may use their federal funds for operating purposes. The new bill, the Local Flexibility for Transit Assistance Act, was introduced today by Rep. Russ Carnahan (D-MO), Rep. Steve LaTourette (R-OH) and nearly 90 others. The legislation would allow transit systems to use their federal funds to keep service on the street if they are in the midst of a “crisis” period - the unemployment rate is at least 7% or the national price of gas has increased substantially during the past year.
“This legislation is long overdue,” declared ATU President Larry Hanley. “Over the last two years, countless transit riders can no longer get to jobs and other daily tasks, and thousands of transit workers have lost jobs, all because of an arcane law that will not allow transit agencies serving areas of over 200,000 people to use their federal funds for critical operating expenses.”
Currently, most systems can now only use their federal funds for capital expenses such as buying buses and trains. They cannot use funds to fill budget gaps. Consequently many agencies simply don’t have enough operators to drive newly purchased transit vehicles sitting idly in their lots.
“We applaud Rep. Carnahan and Rep. LaTourette for their leadership and recognizing all transit systems should be able to allocate federal funds for operations and other areas in need,” Hanley continued. “What good are state-of the-art buses to a community if you don’t have enough local money to put them into service?”
The proposed legislation also includes a unique incentive program that encourages state and local governments to invest in transit. By maintaining a consistent annual investment in transit, the bill would allow the conditional use of a limited percentage of federal formula funds for operating purposes. As an added incentive, if a transit system increases non-federal revenues over a year, additional federal funds could be allocated for operations.
“This legislation makes perfect sense. It gives transit systems local control of their federal funds, allowing them to preserve service and hold down fares, create jobs, and provide people with accessible safe public transit options,” Hanley concluded. “We urge Congress to put this legislation on the fast track. Mass transit is in crisis and investment in public transportation will help our nation dig out of this deep recession.”
About the ATU
The Amalgamated Transit Union is the largest labor organization representing transit workers in the United States and Canada. Founded in 1892, the ATU today is comprised of over 190,000 members in 264 local unions spread across 44 states and nine provinces, including 3,000 workers at Greyhound Lines, Inc. Composed of bus drivers, light rail operators, maintenance and clerical personnel and other transit and municipal employees, the ATU works to promote transit issues and fights for the interests of itshard-working members.
