STATEMENT OF
THE HONORABLE RAY LAHOOD
SECRETARY OF TRANSPORTATION
BEFORE THE
HOUSE COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE
July 27, 2010
Chairman Oberstar, Ranking Member Mica and Members of the Committee I want to thank you for the opportunity to appear before you today to discuss the Department of Transportation’s (DOT) accomplishments in implementing the American Recovery and Reinvestment Act of 2009 (the Recovery Act). For the past 18 months, we have been hard at work at the Department of Transportation ensuring that these funds are used to put American’s back to work -- while at the same time addressing America’s transportation infrastructure needs. Today, I would like to highlight some of these accomplishments and their impact on the lives of individual Americans.
First, I want to assure all of you that the Recovery Act funding provided for transportation infrastructure projects is “out the door” and making a difference. Of the $48.1 billion provided in the Act to support transportation improvement projects, nearly $38 billion of these funds has been obligated on more than 14,800 highway, transit, aviation, and shipyard projects in every State of the Union, the District of Columbia, and several of the U.S. territories. Just over $16 billion – or 33% of these funds -- has already been disbursed to repay States and local authorities for project expenses. The remaining funds provided are for America’s historic High Speed Intercity Passenger Rail program and projects funded through the $1.5 billion Discretionary Grants announced last February. Groundbreakings for several of these projects have already occurred and more are slated to begin this summer.
Last summer, many of the early Recovery Act projects were in the planning stages or were just getting underway. But as the 2010 construction season has moved into full force, we truly are experiencing a “summer of recovery” in the transportation sector. By the end of this summer, Recovery Act funding will have repaired more than 30,000 miles of roads, highways, and bridges making travel safer and improving mobility for families and commuters everywhere. We are upgrading, renovating, and repairing hundreds of airports by bringing runways, towers, and terminals up to 21st Century standards. Recovery Act funds are helping to increase capacity and efficiency at key ports such as Portland, Oregon and Toledo, Ohio, in major thoroughfares like I-405 in Los Angeles, and airports like Denver International. These improvements to our transportation infrastructure will yield benefits for travelers for years to come.
But this is just part of the story… the Recovery Act is also about jobs. The past few weeks, we have been engaged in direct conversations with Recovery Act project recipients. Specifically, these are the folks who are “on the ground” working on individual transportation projects. We have been listening to their stories, and hearing about the impact these projects are having every day. The people we’ve spoken with have told us about the importance of their projects not only to safety, and the state of good repair of the transportation systems, but also to their employees and their communities as a whole. In Beech Grove Indiana, the rehabilitation and return to service of dozens of Amtrak train cars saved 77 jobs and led to the Beech Grove Maintenance Facility hiring more than 100 additional employees to keep up with the increased production. This saved several employees’ homes from foreclosure, ensured that others could continue to put food on the table, and enabled parents to have the resources they needed to send their kids to summer camp.
It also started an economic ripple effect. In Bear, Delaware, not far from the Amtrak car restoration facility, there is a restaurant called Capelli’s. A year ago the owner, Tracy Capelli, had to reduce her workforce by 10 employees, and was seriously considering closing the restaurant. Then the Amtrak car restoration project began ramping up to restore and return to service more cars which allowed the facility to hire more than 50 new workers, nearly all of which had been laid off by the auto industry. Tracy says those new workers are the reason her restaurant is still open today. Thanks to the Recovery Act, Capelli’s now serves meals to the Bear facility workers and the near-by community every day, and Tracy is planning to hire a dozen new workers for the fall season.
For many, the Recovery Act has meant the difference between being unemployed and having a paying job. Bill Montgomery is a Senior Superintendent at Swinerton Builders. He works on a Recovery Act project at Palm Springs International Airport in California, building the new air traffic control tower that will improve safety for air passengers, help to reduce congestion and delays, and provide a better work environment for the FAA controllers. Mr. Montgomery is convinced that he would be unemployed if it weren't for the Recovery Act. He said, "Every time you complete a project, you're concerned about whether you have another project to go to. The Recovery money is fueling that next job."
Then there is Rhea Mayolo who is raising three children in Preston, Maryland. Before the Recovery Act, she was just trying to make ends meet, working two jobs and living off food stamps and energy assistance. Now, she's a consultant helping to oversee the expansion of Maryland 404, the main gateway road to Ocean City, Maryland. When asked about the Recovery Act, she said, "I came from nothing, and now I have a job that is a future for me. Not just a job, it's an actual career. And I love it."
Trevor Eickhoff also credits the Recovery Act with helping him to stay employed. He is a project engineer with Archer Western Contractors in Dallas, Texas. He is working on the Woodall Rodgers Freeway Deck Park, an innovative livability project that will create over five acres of green space and connect Dallas' Uptown, Downtown, and Arts Districts. He considers himself "walking proof" of the success of the Recovery Act: "I'm 25 years old with a mortgage, and I'm still working."
These are just a few examples of where Americans are back at work because Recovery Act projects are providing jobs. Since the beginning of the Recovery Act, we have been measuring the number of jobs resulting from transportation projects and it continues to grow. We estimate that the Department of Transportation’s share of Recovery Act investments has generated 160,000 jobs (based on one person working for a full-year) so far, and that that number will grow quickly over the course of this summer. That number represents the total number of jobs, including jobs created in supplier industries and in consumer goods industries when workers go out and spend their paychecks. If we look just at what we call the “direct jobs” – jobs created on the transportation job-site – we estimate that about 41,700 people are at work each and every day on Transportation Recovery Act projects. While I am pleased with the progress we have made in this first 18 months of implementing the Recovery Act, there is still much more that needs to be done. During our Summer of Recovery, we are witnessing many of the larger Recovery Act projects getting underway. In the last three months alone, Federal Highway Administrator Victor Mendez, Deputy Secretary John Porcari, and I have visited 21 projects in States throughout America. In each of these cities, I have had the chance to talk with project employees and hear how the Recovery Act has touched their lives. Their stories are truly amazing.
As we look ahead, work is continuing on our effort to establish America’s historic high speed passenger rail program. So far, three individual projects are underway and we expect a ground breaking in Maine to occur in August. The Federal Railroad Administration has already obligated close to $175 million for High Speed Rail, initiating work on several major corridors, including Tampa-Orlando (FL), Charlotte-Raleigh (NC), and Milwaukee-Madison (WI). This is the first step in building this new industry that will deliver expanded and improved passenger transportation, economic recovery, and many other public benefits.
Projects funded through our Discretionary Grant program (TIGER I Grants) are also accelerating rapidly. The Department announced 51 TIGER Discretionary Grant awards on February 17, 2010. These innovative, multi-modal grants are creating jobs and demonstrating how transportation investments help achieve key national objectives, like economic competitiveness and sustainability, among others. The Department is using the program's limited funds to foster substantial co-investment from state and local governments and the private sector and to encourage broad partnerships for well-planned and well-coordinated projects.
The Office of the Secretary and the relevant modal administrations are entering into grant agreements and obligating funds on a rolling basis. Currently, two projects have started construction, a rural road safety project in Pine Ridge, South Dakota, and a state-of-good-repair road project, on the Beartooth Highway, in Wyoming. The next groundbreaking is expected to be in Seattle, where the Mercer Corridor project will get underway in August. By the end of this construction season, we anticipate that another sixteen or so TIGER Discretionary Grant projects will have started construction. One of the Department's key initiatives with respect to the TIGER Discretionary Grant program is working with each of the grantees to develop a performance measurement plan for its project.
While technically not part of the Recovery Act funding, the Department is gearing up to evaluate applications for the $600 million in TIGER II Discretionary Grant funds authorized under the FY 2010 Appropriations Act. Yesterday, July 26, was the deadline for submitting pre-applications for this program, and the deadline for submitting TIGER II applications is August 23, 2010. The number of pre-applications we received demonstrates the continued robust interest in a program like this.
The TIGER programs have provided opportunities for the Department to do many innovative things that have little precedent in traditional Federal transportation investment programs. We have applied rigorous analytics to a multi-modal project evaluation process and are working towards real, sustained performance measurement. As we break down modal silos within the Department and working with other Federal agencies to better align and integrate our public service efforts, we are focused on demonstrating substantial value for every taxpayer dollar we invest.
Again, thank you for the opportunity to share the Department’s accomplishments in meeting the goals of the Recovery Act. I will be happy to answer your questions.