» Foxx reiterates the Obama Administration’s demand for more transportation funding, but fails to commit to a new funding source outside of business tax reform. He also is non-committal on reforms to the Federal Railroad Administration’s rules for commuter rail systems.
Yesterday, I had the opportunity to chat with Anthony Foxx, who became the U.S. Secretary of Transportation last year and was previously mayor of Charlotte. I wrote an article on the interview’s major focus points on the website of my employer, Chicago’s Metropolitan Planning Council. The transcript of the full interview is posted at the bottom of this post.
In addition to the conclusions I noted on MPC’s site (and please read those; they are relevant to the discussion here), I want to note a few points about the interview that reflect my personal sense of the administration’s progress on moving forward with a new transportation bill.
It was evident in Secretary Foxx’s responses that he remains committed to the Obama Administration’s push to increase funding for transportation. Of course, the Obama Administration has been promoting increased funding for transportation since 2009, beginning with the stimulus (which roughly doubled federal expenditures for transportation for a short period), and continuing with a number of proposals over the years, each of which promoted the idea of a huge infusion of funds for transportation but which ultimately produced little change. From that perspective, Secretary Foxx’s determination to pass a new four-year, $302 billion program for infrastructure (a plan that would increase expenditures by roughly 50%) seems rather unlikely to result in much of anything.
This is particularly true in light of Senator Barbara Boxer’s proposal to simply extend the funding levels provided for in MAP-21, which themselves were little changed from the previous level of spending. At the heart of the problem, as we all know, is that the transportation user fee model (premised on fuel tax revenues) has collapsed and no one is willing to do much of anything about it. It’s not Secretary Foxx’s fault, but the Obama Administration’s decision to propose funding transportation by using “business tax reform,” which is essentially premised on one-time repatriation of foreign assets, is a half-empty call for change, neither likely to pass Congress nor a long-term solution. I’m skeptical. It’s not that the Administration has done anything terribly wrong, but there certainly has not been much courage coming out of the White House on this issue.
No one with particularly significant power is willing to simply say, “I will increase the gas tax,” or “I will institute a vehicle-miles traveled fee.” It’s not an easy demand, certainly, but it is a necessary one if we want to move forward with more funding for our road and transit systems.
In this context, it is frustrating to watch Secretary Foxx, like Secretary Ray LaHood before him, extol the values of high-speed rail (I confess I hold them dear as well), without making any progress in actually paying for it. Foxx pointed to Florida and Texas as models of interest in high-speed rail even in relatively conservative states — a fair point — but he failed to note that those states are hoping that the private sector will chip in for most or all of the cost of those lines. Certainly conservatives will support transportation investments that are fully paid for by someone else, but what happens when the Florida or Texas projects require public subsidy? Will they face the same resistance as has California’s heavily contested project has?
On the other hand, what other options does the Administration have in the face of a recalcitrant House of Representatives?
Nevertheless, Secretary Foxx’s answers about the Department of Transportation’s willingness to expand the possibility of local funding options were positive. States and cities should be able to toll their local highways if they so desire, but right now they’re stymied by federal regulations that make tolling impossible on most Interstate highways. His willingness to consider Transportation for America’s new policy proposal that would encourage local and state competition in awarding transportation funding is potentially exciting.
In addition, where the executive branch of the federal government may have an easier time producing positive results is in the implementation of regulatory changes within agencies of the Department of Transportation. One issue that has been of particular concern to those interested in improving American rail service has been the Federal Railroad Administration’s (FRA) rules about train weight and strength, which effectively make lighter, more efficient European and Asian trains impossible in the U.S. Stephen Smith noted last year in Next City that the FRA was considering changes to these rules by 2015, when positive train control (PTC) is supposed to be implemented.
Secretary Foxx, however, was far less direct on the issue than this change would imply, noting that “Whether that issue or how that issue comes up in the context of that is still an open question, but we’ll take a look at any issues put out there.” It’s hard to know based on that whether the Department of Transportation or the Obama Administration in general will take these issues seriously in the coming months, but the issue is important, and we can only hope they’ll notice.
Full interview transcript follows below