Creating Jobs, Investing in Transit, Roads and other Infrastructure

Each year, the federal government allocates a significant portion of the overall Federal Budget to expenditures that have a direct impact on the states. This includes monies to support programs such as Medicare, food stamps, unemployment compensation, transportation and infrastructure, Medicaid support, job training and education amongst others.

According to the (Michigan) State Fiscal Agency, “Michigan’s share of Federal expenditures has lagged behind the amount of most other states.” (See State Fiscal Report, May/June 2009). The report finds that “Michigan’s total per-capita expenditures ranked 45^th among the states and 41^st among the states in grants to state and local governments.” Id. This means that Michigan is receiving less than its fair share of Federal expenditures

In terms of transit/transportation dollars, Michigan taxpayers lose about $100 million a year in federal transit aid because the state and its major cities have failed to plan for and invest in world-class bus and train service. In fact, 34 counties in Michigan with little public transit service.

Given the current economic climate in Lansing, there are a number of opportunities for Michigan businesses, organizations and institutions to secure support from Congress and the federal government. For example: States are hoping that a new jobs bill outlined by the President will include money for infrastructure projects.

Despite the possibility of having these funds available, Michigan may be ineligible for $475 million in federal highway money next year because it can’t find $84 million in matching state funds. This means that the state may lose out on nearly have a billion dollars in federal highway money in 2010 and even m ore through 2014.

Despite Michigan's potential shortfall, there is time to advocate for change in Congress and find the resources to fund shovel-ready projects, to help create jobs, boost our state's infrastructure and jump-start our ailing economy.

While Congress chose to delay reauthorizing the Transportation Equity Act, they are allowing authorities and road commission’s time to shape the debate and the outcome of the legislation, including positioning such entities to secure federal funding through the reauthorization. With a lack of funding coming from the state, now is the perfect opportunity to turn to Washington for federal support and seek modifications to exist laws and regulations that would prevent Michigan from capturing additional federal support.

For example, the current surface transportation law, the Safe, Affordable, Flexible, Efficient Transportation Equity Act (SAFETEA-LU, P.L. 109-53), was adopted in 2005 and expired on September 30, 2009. To give you some idea of how political this bill was -- When Congress finally passed the last transportation bill in 2005, it took two years and 12 extensions to complete it.

At stake is the dwindling Highway Trust Fund, financed by a federal gas tax that pays for repairs to the nation’s crumbling infrastructure. At issue is an effort by Congress and the President to set the nation’s transportation policy for the rest of the decade and perhaps for decades to come. The outcome will be critical to state and local governments that depend on federal assistance to maintain and improve their transportation systems.

The end game will be the creation of a funding mechanism that will ensure the national transportation system will meet the demands of an expanding population while also accommodating the environmental priorities of those who want to see less road congestion, less accidents and more transit options.

For transportation planning organizations it could mean a modern, sustainable and seamless surface transportation network, that fully integrates and connects the nation’s small urban and rural regions with global, metropolitan and neighboring markets. It could also mean increased federal investments in existing and new rural public transportation system, with an emphasis on establishing stronger incentives and program flexibility across the spectrum.

While we will wait almost a year before Congress will most likely pass a transportation bill, Congress continues to debate issues of transit and transportation and will soon debate a “jobs” bill that will contain federal funding for local infrastructure projects. For example, the U.S. House of Representatives passed the “American Clean Energy and Security Act” (H.R. 2454) in June, and the Senate is still debating their bill. Both bills contain provisions affecting transit, transportation, infrastructure projects and jobs.

Although Congress will not pass a transportation bill until next year, there are still opportunities for transit agencies and organizations to secure resources for a variety of projects through existing bills, and help shape funding for future projects by taking a proactive role in advising Congress on what is important to your agency and community. We need advocates in Washington to support projects in the State of Michigan. We need effective leadership to create a collaborative group of like-minded agencies to support what is necessary to bring the requisite resources to re-build Michigan and create opportunities for us to get back to work.

Therefore, if you have certain projects that need to be funded or policy related issues that can benefit your program, it is important that you meet with your planning organizations; MDOT, the Governor and your Congressional Delegation to ensure their priorities are your priorities. Then it is important to work with your chambers and other community organizations to build a solid base of support for your projects. Despite a full agenda, Congress needs to hear from you and what you need to provide valuable resources to your community. With limited funds from the state and dwindling budgets all around, it seems that Congress is our only option.

When the states can’t pay for schools, Just ask Congress!

With funding diminishing from the State of Michigan for schools, opportunities exist in Washington to secure federal funding. For example, the following school districts received federal funds in FY 2009:

• School District of Lancaster (PA) and Philadelphia School District each received $100,000 Project IMPACT, for abstinence education and related services.
• Troy High School (PA) received $247,000 for removal and/or replacement of non historic windows, infill, louvers, windows, and fan lights.
• The Logan Elm School District (OH) received $48,000 for water infrastructure improvements.
• The Hesperia Unified School District, Hesperia, CA, received $98,000 for an after school program for middle school students.
• The Independence School District (MO) received $347,000 for before- and after-school programs.
• The Washoe County School District (NV), received $248,000 for an online assessment and accountability instructional programs and an additional $248,000 for an English Instructional program.
• The Springfield School District (IL) received $94,000 for a middle school history experience.
• The City School District of New Rochelle (NY) received $422,000 for after school and summer school programs, faculty professional development, and parent education workshops.

These are just some examples of how schools benefited from Congressional appropriations and governmental advocacy in securing additional funds for their schools. With limited funding from the state and a declining tax base, the federal government has some funds to support Michigan’s schools.

However, to obtain funding from Congress, the local school districts need to request the funding. At times, it is not enough to ask your local member of Congress. It is important to build support for your issues and requests, meet with Congressional staff, invite your member to experience schools and perhaps even make it an educational experience for the students by involving them in the legislative process.

What's Next For Congress?

Members of Congress are planning on working through the Thanksgiving holiday in an effort to try to wrap up a number of outstanding issues, including health care and climate change legislation. However, it seems that these issues will be carried over into the next session and will remain relevant going into 2010 and the mid-term elections. Here is a look into some of the issues Congress will keep their eye in 2010:

HEALTH CARE REFORM -- Despite passage in the House, the Senate is working diligently to find a compromise. Expect this issue to continue on into February before anything is resolved.

CAP-AND-TRADE -- Again, despite passage in the House, the Senate is finding difficulty in addressing a number of issues in this bill, including pressure from manufacturing states and the potential impact on jobs.

FINANCIAL REFORM -- Banks and other financial firms are already gearing up for a the debate on financial reform. Although this issue remains a priority, it took a back seat during the health care and climate change debate, but is starting to gain traction in committee.

TAXES -- A number of tax relief measures passed in 2001 and 2003 are set to expire by the end of 2010. Expect this issue to become a polarizing issue as members of Congress prepare for the election season.

IMMIGRATION -- Another priority of the administration, this issue will have the potential to be another political issue.

STIMULUS II -- Communities are still struggling despite the influx of funds from the federal government. In an election year, Members of Congress may look to bring more immediate relief to their districts.

TRANSPORTATION -- Congress punted on addressing the expired and Transportation Equity Act for an additional 18 months. However, Congress will still hear testimony on reforming or nation's aging infrastructure and how to address its shortcomings.

FEDERAL FUNDING -- With a lack of funding from state governments, going to local governments, social service agencies and other organizations, people will be looking to Congress for financial support.

Regardless of the issues Congress considers in the coming months, it will no doubt be political as their think about their election.

Stop Looking at Lansing: Schools need to focus on support from Congress

With funding diminishing from the State of Michigan for schools, districts statewide should shift their focus to Washington.

For example, the following school districts received federal funds in FY 2009:

• School District of Lancaster (PA) and Philadelphia School District each received $100,000 Project IMPACT, for abstinence education and related services.
• Troy High School (PA) received $247,000 for removal and/or replacement of non historic windows, infill, louvers, windows, and fan lights.
• The Logan Elm School District (OH) received $48,000 for water infrastructure improvements.
• The Hesperia Unified School District, Hesperia, CA, received $98,000 for an after school program for middle school students.
• The Independence School District (MO) received $347,000 for before- and after-school programs.
• The Washoe County School District (NV), received $248,000 for an online assessment and accountability instructional programs and an additional $248,000 for an English Instructional program.
• The Springfield School District (IL) received $94,000 for a middle school history experience.
• And the City School District of New Rochelle (NY) received $422,000 for after school and summer school programs, faculty professional development, and parent education workshops.

These are just some examples of how schools benefited from Congressional appropriations and governmental advocacy in securing additional funds for their schools. With limited funding from the state and a declining tax base, the federal government has the funds available for local districts.

With very limited budgets, school districts need to be careful where they spend their resources. It may prove helpful to work through an intermediate school district or perhaps even build a regional collaboration with the county, chambers and other entities to secure federal funding.

Funding for Food Banks

With 35 million individuals either experiencing hunger or teetering right on the verge of hunger each year, the American people expect Congress to take every reasonable action possible to address food shortages, particularly here in Michigan. Last year, Congress passed a bill designed to encourage federal agencies to regularly donate surplus food to organizations that feed the hungry and each year, the providing funding to a number of organizations that help distribute food.

In addition, each year, Congress passes appropriations for food banks/pantries. The following organizations received federal appropriations in the past:

- Bay Area Food Bank. Bay Area Food Bank, which distributes food donated by grocery stores, restaurants and the like to soup kitchens and homeless shelters received $245,000 for the construction of a commercial-size kitchen (FY 2008) (Jo Bonner).

- Tucson Community Food Bank (TCFB) -- Rep. Gabrielle Giffords requested $200,000 for “solar panels” at the TCFB in the FY 2009 budget.

- Second Harvest Food Bank received $700,000 in 2007.

- In 2006, Sen. Obama requested $2,499,400 for the Food Stamp Participation Project of the Illinois Department of Human Services. The Food Stamp Participation Project is development of new technology projects, which are designed to increase the access to the food stamp program. One is designed for use by the general public and the other is a web based application designed for use in food pantries. [Obama Request Letter to the Senate Appropriations Subcommittee on Agriculture, Rural Development, and Related Agencies, 3/31/06].

- For FY 2009, Sen. Sherrod Brown (D-OH) requested $368,500 for renovations at the Akron-Canton Regional Food Bank

- The South Texas Food Bank will receive $136,670.48 in conjunction with the 2008 Farm Bill should it be signed into law.

Although this list is not comprehensive, you can see, federal funding is available for a wide variety of needs, including: infrastructure improvement, child nutrition programs, food stamps and childhood obesity prevention, among other things. This funding is requested directly through Congress and is unrelated to a grant.

With a lack of funding from the state, organizations such as those with food banks, should turn their attention to Washington for support.

With funding diminishing from the State of Michigan for local governments, including school districts, municipalities, townships, school districts and other authorities should focus their attention in securing federal funds for their programs, projects and services, instead of wasting their time in Lansing.

For example, federal funds are available for local governments for a variety of programs ranging from new buildings to communications equipment for first responders. In FY 2009, the following communities received federal funding:

• Negaunee, MI for the Croix Street Reconstruction and completion of Phase I.
• Park City, UT for a Feasibility Study that would bring water from Reclamation facilities.
• Boise, ID, for design and construction of Boise's geothermal system expansion.
• Jackson, MS for a Transitional Job Project for job training and employment programs for the Homeless.
• Oakland, CA for a Green Jobs Initiative.
• Baltimore, MD, for construction for Healthcare for the Homeless center.
• Miami, FL for the Miami Green Initiative, to reduce greenhouse gas emissions and fuel consumption in the city.
• Milwaukee, WI to improve access to and utilization of primary and preventive health care among low-income residents.
• The City of Beech Grove, IN, to enhance public safety with in-car cameras and at hot spots in the City to provide real-time feeds to the police command center.
• Holyoke, MA, to develop a full-service community school pilot project.
• The City of Shelbyville, IN, to complete the interoperable wireless public safety communications system for first responders.
• Medford, OR, to provide for the merging of two existing 9-1-1 dispatch centers for police officers.
• City of Sioux City, Sioux City, IA for meth related training.
• Moultrie, GA, for technology upgrades, including purchase of equipment and professional development
• City of Haverhill, MA for various Downtown Streetscape Improvements.
• Stamford, CT, Waste-to-Energy Project, to convert dried sludge into clean, renewable energy.
• City of Yonkers, NY Police Department, to reduce non-emergency 9-1-1 calls through the creation of a new public hotline.
• Albuquerque, NM for their Transit Facility Rehabilitation.
• City of Ashland, MO Main Street Redevelopment Project.
• Crystal City, VA Bus Rapid Transit.
• City of Tuscaloosa, AL Downtown Revitalization Project University Blvd. and Greensboro Avenue.
• Trenton, NJ for a Renewable Energy Feasibility Study, to examine possible renewable energy sources.
• Quincy, IL for Hydroelectric Power Generation, and their city's efforts to install hydroelectric plants at locks and dams.
• Oklahoma City, OK, to continue replacement of Oklahoma's aging communication system.
• Cincinnati, OH for the complete property acquisition, demolition, and remediation to create an urban industrial park.
• Craig, AK for the redevelopment of the abandoned cannery property.
• Milwaukee, WI for the development of supportive housing units for homeless.

In addition, the following school districts will receive federal funding through appropriations: The School District of Lancaster (PA) and Philadelphia School District each received $100,000 Project IMPACT, for abstinence education and related services. Troy High School (PA) received $247,000 for removal and/or replacement of non historic windows, infill, louvers, windows, and fan lights. The Logan Elm School District will receive $48,000 for water infrastructure improvements in Circleville, Ohio. The Hesperia Unified School District, Hesperia, CA, received $98,000 for an after school program for middle school students. The Independence School District, Independence, MO, received $347,000 for before- and after-school programs. The Washoe County School District, NV, received $248,000 for an online assessment and accountability instructional programs and an additional $248,000 for an English Instructional program. The Springfield School District, Springfield, IL, received $94,000 for a middle school history experience. And the City School District of New Rochelle, New Rochelle, NY, received $422,000 for after school and summer school programs, faculty professional development, and parent education workshops. These are just some examples of how local governments and local schools benefited from Congressional appropriations and governmental advocacy in securing additional funds for their community. With limited funding from the state and a declining tax base, the federal government has funding available. It just needs to be identified and advocated for. In fact, cities throughout the country have been receiving federal funds, through grants and earmarks, to help offset the lack of funding from their state. While a number of communities here in Michigan have retained lobbyists to fight for a limited amount of money from the state government, only a few have recognized that more money exists from Washington. To help off set costs associated with retaining a lobbyist, communities can pool their resources, work through their chambers or local economic development organizations and find other creative ways to secure the funding they are no longer receiving from Lansing.

While we sit here in Michigan, trying to convince legislators that one program is more worthy of funding at the sacrifice of another, local government leaders should retain a lobbyist to secure federal funding from Congress. Now is the time to start planning for the next fiscal year and secure the funding necessary to govern. If we do shift our focus to Washington, other communities in other states will.

Congress to debate energy reform this week

U.S. Senator Barbara Boxer (D-CA), Chairman of the Senate Committee on Environment and Public Works, today released the text of the Chairman's Mark of the Clean Energy Jobs and American Power Act (S. 1733), this past Friday.

New and revised language in the Chairman's Mark released include:

• Specifies distribution of emissions allowances;
• Ensures that the majority of investments in the bill are for consumer protection;
• Includes new provisions to address clean coal technology;
• Increases investments in energy efficiency and renewable energy;
• Reduces greenhouse gas emissions and increases investments in the transportation sector;
• Enhances agriculture and forestry provisions;
• Directs assistance to rural communities;
• Includes greater assistance for small and medium refineries;
• Enhances the role of tribes;
• Increases the size of the market stability reserve; and
• Promotes advanced renewable fuels.

To see a copy of the bill, find it here. To find the differences between the earlier version? For more information on the bill and hearings scheduled for this week, beginning, contact dcherrin@cherrinlawgroup.com.