Local Infrastructure Report Released by National League of Cities

The National League of Cities released a new report Paying for Local Infrastructure in a New Era of Federalism.  Declining funding, increasing mandates and misaligned priorities at the federal and states levels have put responsibility for infrastructure on local governments. But what ability do cities have to take up this call? The authority of cities to meaningfully address growing infrastructure challenges is bound by levers authorized to them by their states. The report finds that cities are limited in the number and scope of tools they are authorized to use, and that access to these tools is highly uneven in states across the country.

Summer Minnick is the Director of External Relations and Federal Affairs. She can be reached at 517-908-0301 or sminnick@mml.org.

Flint Aid Package Awaits Action in US Senate

Recently, Michigan Senators Debbie Stabenow and Gary Peters introduced legislation, along with Senator James Inhofe (R-OK) and many others, to provide additional resources for water infrastructure in light of the crisis in Flint. The legislation, S. 2579, would provide:

  • $100 million for the Drinking Water State Revolving Loan Fund for any state, such as Michigan, that receives an emergency declaration under the Stafford Act due to a public health threat from lead or other contaminants in a public drinking water supply system;
  • $70 million for the Water Infrastructure Finance and Innovation Act (WIFIA) for low-interest loans for large water and wastewater infrastructure projects nationwide; and
  • $50 million to support public health initiatives, such as lead poisoning prevention, research and health assistance.

A more robust description is attached below. The bill is currently “attached” as an amendment to an energy bill in the Senate. The hold up of its passage is Senator Lee (R-UT), who has placed a “hold” on the legislation, a procedural move prevent a vote. The National League of Cities is asking cities across the country to contact their Senators to help apply pressure and send a message that all cities stand together on the Flint crisis. We are hopeful that negotiations which are occurring while the Senate is on break will result in a positive outcome when they return next week.

DRINKING WATER SAFETY AND INFRASTRUCTURE ACT – Summary (3 1)

Summer Minnick is the Director of External Relations and Federal Affairs. She can be reached at 517-908-0301 or sminnick@mml.org.

New Federal Transportation Bill, FAST Act, Becomes Law

President Obama signed the FAST (Fixing America’s Surface Transportation) Act yesterday, making the first long term transportation bill in a decade official. There are some big wins for local governments within the new law, which is worth approximately $305 billion. A good, comprehensive 13 page summary of the law can be found here.

The biggest win for local communities, quite simply, is that it is a 5 year arrangement and local leaders will not have to wonder what will happen every six months under more extensions. The League had been advocating first and foremost for a bill that expands beyond the next fiscal year to enable more long-term planning for transportation projects. Specifically, there are many other significant victories being highlighted in the bill, which spans 1300 pages.

The Surface Transportation Program is now the Surface Transportation Block Grant Program and increases the amount allocated to local leaders from 50% to 55% over the length of the bill and gives locals greater flexibility in how the funds are spent.

The Surface Transportation Block Grant Program would now house the Transportation Alternatives Program, and is proposed to be increased from $835 million to $850 million. And the bill gives Metropolitan Planning Organizations additional flexibility in how to spend their funds.

Transit Oriented Development would be eligible for the TIFIA program and the minimum project size threshold would be lowered to $10 million, expanding the program significantly for smaller projects.

The Michigan delegation was mostly supportive with both Senators voting yes and twelve of the fourteen Representatives voting for the bill as well. Congressmen Amash and Huizenga were the two no votes.

Summer Minnick is the Director of External Relations and Federal Affairs. She can be reached at sminnick@mml.org or 517-908-0301.

Congress Poised to Pass Long-Term Transportation Package This Week

For the first time in ten years, Congress is on the verge of passing a long-term transportation package and there are some big wins for local governments within the new deal. The committee of House and Senate negotiators have agreed to the new bill worth approximately $305 billion, entitled the FAST Act (Fixing America’s Surface Transportation), and both Chambers are expected to pass it by the deadline of this Friday, December 4th. The biggest win for local communities, quite simply, is that it is a 5 year arrangement and local leaders will not have to wonder what will happen every six months under more extensions. The League had been advocating first and foremost for a bill that expands beyond the next fiscal year to enable more long-term planning for transportation projects. Specifically, there are many other significant victories being highlighted in the bill, which spans 1300 pages.

The Surface Transportation Program is now the Surface Transportation Block Grant Program and increases the amount allocated to local leaders from 50% to 55% over the length of the bill and gives locals greater flexibility in how the funds are spent.

The Surface Transportation Block Grant Program would now house the Transportation Alternatives Program, and is proposed to be increased from $835 million to $850 million. And the bill gives Metropolitan Planning Organizations additional flexibility in how to spend their funds.

Transit Oriented Development would be eligible for the TIFIA program and the minimum project size threshold would be lowered to $10 million, expanding the program significantly for smaller projects.

The bill is being paid for by a series of sources, not including any changes to the federal gas tax. Some of the sources include the Federal Reserve surplus account, selling a portion of the Strategic Petroleum Reserve and cutting the dividend the Federal Reserve pays to some member banks.

We will notify you as soon as the bill has cleared both the House and Senate later this week. We’ll know more details of the bill in the coming days, but the changes identified so far show significant improvement for local governments and their support for transportation infrastructure by the federal government. We’re pleased after all these years to be on the verge of such a victory!

Summer Minnick is the Director of External Relations and Federal Affairs. She can be reached at 517-908-0301 or sminnick@mml.org.

Budget and Speaker Action in US House of Representatives

The Unites States House of Representatives just took some significant action on critical issues which had been looming. They passed legislation which suspends the debt ceiling until March of 2017 and lifts budget caps set by sequestration by $80 billion through September 2017. That increase will be split evenly between discretionary spending and non-discretionary spending. This could result in positive outcomes for local government programs in the coming year and a half. Senate members have sounded mostly positive about the deal. Essentially at the same time, they voted Paul Ryan (R-WI) to serve as the next House Speaker, ending weeks of turmoil within the GOP caucus. 

Summer Minnick is the Director of External Relations and Federal Affairs. She can be reached at 517-908-0301 or sminnick@mml.org.

Possible Federal Debt Limit and Budget Deal This Week

A deal to increase the federal debt limit and set some federal budget figures has been struck by Congress and the President, according to many sources out of Washington DC. The deal would raise the debt ceiling through March 2017 and would lift sequestration caps in the budget for fiscal years 2016 and 2017. Currently it appears that long term federal transportation solutions are not included in the agreement. While the plan has not been made public yet, it is expected to be within the next day or two. Congress has only a few days left to act before the current federal debt limit is reached, so time is winding down for an agreement. Additionally, it is believed that there is a desire by many in the Republican caucus to strike an agreement before a new Speaker takes the helm.

Join #CitiesLead2016 to Encourage Presidential Candidates to Address City Issues

`The National League of Cities has launched Cities Lead 2016, which is a new platform for local officials to engage with Presidential candidates on important city issues. By signing up here, you can receive updated information on the campaign and send a message that you want to hear candidates address key issues that impact cities and villages such as transportation, economic development issues and public safety. On the NLC’s website for the campaign, you can download a brochure on the issues, learn about all the candidates and find additional resources. Please help us get local issues into the Presidential spotlight!

Summer Minnick is the Director of External Relations and Federal Affairs. She can be reached at 517-908-0301 or sminnick@mml.org.

Transportation Sees Action in Congress

The House Transportation and Infrastructure Committee voted this week to support a six year federal transportation bill, the Surface Transportation Reauthorization and Reform – STTR – Act of 2015 (H.R. 3763), which has provisions that are seen as being very favorable to local governments – similar to that of the DRIVE Act passed by the Senate prior this summer. This includes incremental growth in local government funding under the Surface Transportation Program and preserving local authority to allocate funding for multi modal transportation networks under the proposed STP Set Aside. One major difference however, is that the House proposal does not provide for a funding stream for the nearly insolvent Highway Trust Fund, whereas the Senate plan did have three years of funding proposed. But this step is seen as important and positive for getting a long term transportation plan on the books soon. While there may be another short term extension before the House and Senate can resolve their proposals and agree on how to fund them – the hope is that this deal can be in place by the holidays.

Summer Minnick is the Director of External Relations and Federal Affairs. She can be reached at 517-908-0301 or sminnick@mml.org.

Deadline to Raise Federal Debit Limit Moved Up

This week, US Treasury Secretary Jack Lew told Congress that the deadline for the United States running out of cash to pay its bill is now November 3rd. There are only 10 legislative days left before the deadline, and the House still has not determined who they will be electing as a new Speaker. There are many in doubt that a deal will be reached by the deadline, which has many financial analysts starting to predict a variety of negative impacts, including a downgrading of the federal credit rating and a downward spiral of consumer confidence.

Summer Minnick is the Director of External Relations and Federal Affairs. She can be reached at 517-908-0301 or sminnick@mml.org.

Congress Avoids One Disaster, Heading for More

Last week Congress passes another short term budget measure, a Continuing Resolution (CR) to fund federal programs at current levels through December 11th, 2015th. This happened a few hours before a federal shutdown would have begun. It was a narrow escape, but more difficult deadlines are approaching as the House leadership situation is not making things run smoothly at the moment. US Treasury Secretary Jacob Lew has given November 5th as a date for when the US will not be able to pay its bills unless the debt ceiling is raised. And this week President Obama stated firmly that he will not sign another short term spending bill. Many in Washington are talking about using the debt ceiling debate as a way to work a bigger deal for the budget and/or long term federal transportation funding. However, that seems like a big ask for Congress in the next 3 weeks.

Summer Minnick is the Director of External Relations and Federal Affairs. She can be reached at 517-908-0301 or sminnick@mml.org.