Public Transportation Preservation Act

S. 3412 (Dodd)

About the Bill

• Introduced by Senator Christopher Dodd (CT) on Tuesday, May 25,
2010
• Co-sponsored by Senators Mark Begich (AK), Charles Schumer &
Kirsten Gillibrand (NY), Roland Burris & Richard Durbin (IL), Frank
Lautenberg & Robert Menendez (NJ), Jack Reed & Sheldon Whitehouse
(RI), Ron Wyden (OR), Arlen Specter (PA), and Sherrod Brown (OH)
• Companion House bill is H.R. 5418 (McMahon), introduced Wednesday,
May 26, 2010

Key Elements of the Bill

• Allocates $2 billion from the general fund to the states and MPOs via
the funding formulas in the 2009 ARRA (stimulus act)
• The funds shall be used for public transit operating expenses,
specifically:
o To restore transit service that has already been reduced in 2009
or 2010
o To rescind a fare increase applied in 2009 or 2010
o To prevent service reductions or fare increases through
September 2011
• The funds may be used for capital expenses (repair, rehabilitation,
replacement) if:
o No service reductions or fare increases have occurred or will
occur
o All service reductions or fare increases have been restored or
rescinded, and there is additional funding remaining
• The funds must be obligated by September 30, 2011 and spent by July
1, 2012

Director of Transportation for America, James Corless, released the

following statement:

“With demand for public transportation service at its highest level in over 50
years, Congress must act to protect Americans who rely on transit from
service cuts and fare hikes that threaten their ability to reach jobs and daily
necessities. This act will help to preserve an economically essential service
with a one-time, emergency infusion that will help to save jobs and access to
jobs.

“The dire situation facing transit systems across the country – as they are
forced to lay off workers, raise fares and cut service – highlights the critical
Public Transportation Preservation Act
S. 3412 (Dodd)
need for Congress to pass the transportation authorization bill this year that
would address America’s need for greater transportation options.”

TRANSPORTATION FOR AMERICA (T4) is the largest, most diverse coalition working on
transportation reform today. Our nation’s transportation network is based on a policy that
has not been significantly updated since the 1950’s. We believe it is time for a bold new
vision — transportation that guarantees our freedom to move however we choose and leads
to a stronger economy, greater energy security, cleaner environment and healthier America
for all of us. We’re calling for more responsible investment of our federal tax dollars to
create a safer, cleaner, smarter transportation system that works for everyone.
www.t4america.org
Public Transportation Preservation Act
S. 3412 (Dodd)

Key Points

• Transit saves households money. While families continue to

struggle to make ends meet the last thing we should do is make it
harder and more expensive for people to get to work. Californians with
access to public transportation save over $5,000 a year on household
transportation costs.

• Transit operations spending creates more jobs. The vast

majority of operational spending goes into payroll, and in the 2009
stimulus bill, transit dollars created twice as many jobs compared to
highway spending.

• Transit gets people to jobs. Last year, Americans took over 10.7
billion trips on transit, the highest level in 50 years. When transit
agencies cut back, transit users suffer and so does our economy.

• Transit spending benefits a cross-section of America. Economic

models, like that run by the Economic Policy Institute, show transit
operations especially benefits those hardest hit by the recession.
These investments would also create more jobs per dollar for African-
Americans and Hispanics relative to their employment levels in the
overall economy.

• California’s transit agencies are in crisis. From San Diego to

Sacramento, agencies are cutting back on vital services. For example:
o Sacramento Regional Transit raised fares over 20% in 2009
and cut service on evenings and weekends in March 2010.
o Orange County Transportation Authority in 2009 raised
fares 25%, cut service 13%, and eliminated 92 employees;
anticipated cuts of 17% and layoffs of 192 more employees in
2010.
o San Francisco Muni raised fares by 33% in 2010 and
eliminated or reduced service on 50% of all routes; declared a
fiscal emergency because of $129 million deficit.
o San Diego MTS nearly doubled one-way fares on shuttles and
trolleys in 2009 and cut Sunday service on a third of bus routes
in 2010.
o Long Beach Transit raised fares 39% after losing $7 million in
state transit funding.
o AC Transit increased fares by 14% in 2009; in 2010, service has
been cut by 8% already and another 8% reduction is under
consideration right now.
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S. 3412 (Dodd)
o Santa Clara VTA eliminated late-night service, terminated 2
routes, and reduced other service, and still faces a projected
long-term structural deficit of $40 million annually.
o Caltrain anticipates a $30 million budget deficit for fiscal year
2011, with service cuts of up to 50% being considered.
o Los Angeles Metro is planning to increase fares by 20% in July
2010.