Transforming Public Transportation

March 16, 2016
Funding was at the forefront of discussions at the Legislative Conference, but transit’s role in the future of shared mobility has developed into an essential question that is dominating the conversation.

Funding was at the forefront of discussions at the Legislative Conference, but transit’s role in the future of shared mobility has developed into an essential question that is dominating the conversation.

The American Public Transportation Association’s annual Legislative Conference in Washington, D.C., kicked off on March 13 with a distinctive atmosphere from the past few years; there was a new sense of optimism.

However, that mood was quickly met with a reality check and an agenda summarizing the challenges ahead.

American Roads & Transportation Builders Association President & CEO Dr. T. Peter Ruane said while the funding bill is named Fixing America’s Surface Transportation, it isn’t going to fix it. And while 5 years may seem like a fairly significant time, there’s a lot eating into that time.

The new president will make his or her tough decision in the first year and Congress will get caught up in that; it’s a period of real transition that will be upon us before we know it. He also pointed out that in 3 years, the state DOTs will start to slow down their programs. During the previous time of uncertainty, there were 20 states that had pulled back and a number of major states suspended huge investments in key parts of the country.

“We don’t have 5 years,” he stressed. “We have 3 at best.”

Over the next 5 years, Rob Healy, APTA vice president - Government Affairs, reminded attendees that there will be two more Congresses before the FAST Act is over, which means there will be a lot of new faces that don’t understand transportation and transit.

APTA Chair and Greater Cleveland Regional Transit Authority Board of Trustees Member Valarie McCall stated the APTA Marketing & Communications Committee has been working with APTA members and its partners to continue in developing messaging that resonates.

“If we don’t tell our story right, we’re doing ourselves a disservice,” she stressed.

Shaping Transit’s Future

There were discussions of disruptive technologies, such as autonomous vehicles, 3-D printing and transportation network companies (TNCs). The conversations were focused on how the industry can reposition itself to be ahead of the curve.

“Understanding tomorrow’s change starts with understanding our customers and that will define our future,” said APTA President & CEO Michael Melaniphy.

Today and tomorrow’s riders want mobility that fits their schedule and their lifestyle.

“For each rider, it’s an individual answer,” Melaniphy said. “It’s things we can’t even imagine today.”

The future is about shared mobility and matching personal preferences to mobility. Taking the lead in this space, APTA will be hosting a shared mobility summit next year.

APTA Released a press release: www.MassTransitmag.com/12182566

View APTA’s report “Shared Mobility and the Transformation of Public Transit” at http://www.apta.com/resources/reportsandpublications/Documents/APTA-Shared-Mobility.pdf

The FAST ACT

APTA’s Healy and FTA staff provided insight on the FAST Act and started discussions to get feedback on areas that further guidance is still needed.

Fixing America’s Surface Transportation (FAST) Act authorizes $6.1 billion over 5 years, through September 30, 2020, for FTA programs.

7/30/15: Senate passes the DRIVE Act
11/5/2015: House passes the STRR Act
12/1/2015: House-Senate Conference Committee reports out the FAST Act
12/4/2015: President Obama signs the FAST Act
9/30/2020: FAST Act expires

Over the next 5 years, it authorizes $48.9 billion from the Mass Transit Account (MTA) of the Highway Trust Fund (HTF). In FY16, transit funding from the MTA increases by 8.76 percent and it increases 18 percent over 5 years.

General fund authorizations increase by 16.28 percent in FY16 and remain flat for the remaining years.

It re-introduces a Discretionary Bus Program; phases in increased Buy America requirements, up to 70 percent by FY20; includes changes to the Workforce Development Program; and streamlines vehicle procurement and leasing.

For a more detailed outline of the FAST Act, visit www.MassTransitmag.com/12182920

The Political Climate

A highlight of the conference is always the political outlook from pundits to get an idea of how the overall landscape may impact the industry. David Wasserman, election analyst with The Cook Political Report, and Nathan Gonzales, editor and publisher of the Rothenberg & Gonzales Political Report, provided observations of the primaries and upcoming general election.

Gonzales said every election cycle people say it’s the craziest election of our lifetime but this time, it really may be the craziest and the word he used to encapsulate what’s going on was “assumptions.”

There were a lot of assumptions up to this point that turned out to be wrong. The first, he said, was that Donald Trump would falter or be disqualified. “That hasn’t happened,” he said.

They underestimated the degree of which a segment of America is deeply frustrated with government, the system, the “establishment.”

Not being a politician, Trump isn’t being held to the same standard of other candidates. His supporters don’t have faith in government, they don’t have that loyalty. It’s other politicians and media that are attacking Trump and his supporters don’t care what either of those groups say.

There was an assumption that the “establishment” would take Donald Trump down. While the “establishment” is thought of as a single entity, Gonzales said that’s not how it works. It’s a multi-candidate race and they’re thinking why should they spend their money and efforts in taking him down when it is helping other candidates? “It’s a dicey situation,” said Gonzales.

There was the assumption that Jeb Bush’s money would help him prevail. “Some problems, money can’t fix,” Gonzales said. “He was running as a legacy candidate and that’s not valued the same way anymore because people don’t have faith in government.”

There was an assumption the word “socialist” would bring down Bernie Sanders, but that hasn’t happened. Those types of labels don’t mean a lot to the younger generation, said Gonzales. And while the democrats have enjoyed the division in the Republican party the last 6 or 7 years, there is a growing divide in the Democratic party.

While there is a big assumption that Donald Trump would be a disaster for the Republican Party, that it would be a historic meltdown, Gonzales said there have been so many assumptions over the last 14 months, he’s not sure we know how this election is going to end up.

While House Democrats want the Republican Party meltdown, they’re concerned because they’re hearing from union members that the Trump message is a good message.

Wasserman provided data that looked at the political scene.

He pointed out that candidates with zero experience have had the most support on the Republican side and if they can point to a record of job creation, they’re doing better. He said, “If it was a ship, there’s been a mutiny brewing for a long time and the right pirate came along in 2016.”

When talking about the change in the party, he pointed out that Marco Rubio and John Kasich count for 78 percent of the gubernatorial support, yet they’re behind Donald Trump and Ted Cruz. “Republican leadership is estranged from base voters in the primaries.”

On the Democratic side, there’s a massive generational divide in the race with about an 80 percent margin for Bernie Sanders with younger voters.