Regions Respond
Tampa Bay Regional Planning Commission
Fred Abousleman
Executive Director
National Association of Regional Councils
NARC
BUILDING REGIONAL COMMUNITIES
The worlds been changing
for 30 years and caught us in the last three.
How bad……?
• "We're basically sliding toward Third
World status," said Rep. Peter
DeFazio, D-Ore. "It's pathetic."
• DeFazio chairs the House
subcommittee on highways and
transit.
•
Jeff Kosseff, The Oregonian Sunday June 29, 2008, 12:44 PM
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BUILDING REGIONAL COMMUNITIES
National Snapshot
•
CBO estimates the Iraq War will cost $1 trillion to $2 trillion
•
US economy is not in a technical recession, but shows no sign of short term revival =
federal, state and local budget constraints and cuts
•
American Society of Civil Engineers has given our nation's public infrastructure a Dminus, estimating that it will cost $1.6 trillion over the next five years just to repair the
infrastructure we currently have.
•
The National Surface Transportation Policy and Revenue Study Commission
calculated that it will take $225 billion just to maintain the existing system over the
next 50 years. Meanwhile, OMB predicts a $3.2 billion shortfall in the Highway Trust
Fund by 2009.
•
We are falling behind Japan, China, India, and the European Union in investing in
infrastructure improvements to support the economy
•
More than 72,000 miles of municipal water and sewer pipe are more than 80 years
old, threatening the public health and economies of communities large and small.
•
The 36 million gallons a day that leak from the 85-mile-long Delaware Aqueduct in
New York state amounts to more than 1 billion gallons a month. The daily leak in the
tunnel would meet the daily demands of drought-ravaged Raleigh, N.C.
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BUILDING REGIONAL COMMUNITIES
Federal Investment
•
The U.S., with the world’s largest economy, spends less than 1% of GDP on
infrastructure as compared with countries like China, 9%, and India, 3.5%.
•
Federal spending on infrastructure has hovered around 3% of total
expenditures in the federal budget.
•
From 1987 onward, infrastructure spending by the federal government and by
states and localities has grown in real terms by 1.7% and 2.1%, respectively.
•
Infrastructure spending by states and localities has accounted for around
three-fourths of total spending.
•
Public spending on infrastructure totaled just over $312 billion in 2004 –
federal spending was $73.5 billion, about 24%.
•
Before the late 1980s, federal infrastructure spending accounted for 10% or
more of the budget from 1959 through 1966. The subsequent decline of that
share occurred in part because of a rise in spending on domestic programs
unrelated to infrastructure— i.e. entitlement programs: Medicare, Medicaid
and Social Security (more than half federal spending in 2004)
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BUILDING REGIONAL COMMUNITIES
Where Does FL Stand?
•
1830 census - Florida had 37,000 people
•
By 2025 Florida is expected to be the 3rd most populous state, with a
population of 20.7 million.
•
Florida will add about 180,000 new residents in 2008 and 200,000 in 2009
•
Florida has one of the biggest and longest running growth averages in the
country
•
Florida's economy declined at its sharpest rate in 16 years during the
second quarter, and the current downturn likely will exceed the 1990-1991
recession in the state.
•
Florida slipping relative to Texas, North Carolina and Georgia in
competitiveness.
•
The continued growth of the state has outpaced infrastructure
improvements
•
Florida will need to spend 200 billion dollars over 20 years to maintain and
improve its infrastructure.
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BUILDING REGIONAL COMMUNITIES
Freeway Congestion
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BUILDING REGIONAL COMMUNITIES
Airports
• Over 3000 public airports
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BUILDING REGIONAL COMMUNITIES
Top Port Totals
(over 200 ports in US)
Total
Calls
000 dwt
Los Angeles/Long Beach
5,426
243,752
New Orleans, LA1
5,650
237,505
Houston, TX
6,327
215,467
New York, NY
4,817
188,006
San Francisco, CA1
3,676
165,601
Philadelphia, PA
3,240
132,469
Hampton Roads, VA1
2,660
111,365
Beaumont, TX
1,268
86,392
Corpus Christi, TX
1,455
84,893
Charleston, SC
2,234
82,167
307
79,650
2,219
77,896
LOOP Terminal, LA
Columbia River, WA1
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BUILDING REGIONAL COMMUNITIES
Construction Costs
• Project cost overruns up to 60%
• Why?
– No material in some cases
• We, China and India have glutted the world’s
cement stock. Production will not meet needs until
2010
– Predicated upon a slowdown in Chinese and
Indian construction.
• No domestic cement supply
• No capacity
– No labor in others
• In the SW – there isn’t enough labor to meet project
demands
• Contractors have stopped bidding
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BUILDING REGIONAL COMMUNITIES
Disasters - mitigation
• Post Katrina/Rita
– $5 billion and counting
– Total cost may reach $150 billion
• Does not account for business and population
displacement
– CA fires, FL Hurricanes, droughts (may be species
killer in Southwest) NARC heavily involved in water
issues – including a massive investment in water
infrastructure.
• Treasury solvency
• Only available money for recovery is in domestic
discretionary accounts
– i.e. transportation, housing, aging, education, social
programs
• We are fighting to keep domestic programs funded
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BUILDING REGIONAL COMMUNITIES
Future Trends
Asia
•
•
•
•
•
Chinese and Indian Competitiveness
Purchasing power
Goods production
Shipments
Ability of our system to absorb?
– Thin
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BUILDING REGIONAL COMMUNITIES
Basic Numbers
Chinese Freight Capabilities will grow
by 35% over the next 10 years.
Ours – 7%
Our current system CANNOT meet
expected global trade demands
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BUILDING REGIONAL COMMUNITIES
Only Getting Bigger
Largest Cargo Airplane
Antonov - AN-124 Ruslan
Up to 150 tonnes of cargo can
be carried.
Largest container ship
The container ship with the
largest declared capacity is the
11,000 TEU Emma Mærsk.
Bigger ships under
construction
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BUILDING REGIONAL COMMUNITIES
Expansion
• Panama Canal Expansion: $5.25 billion. Double
Volume by 2025
• $685 Million Vancouver Port Expansion (plus
millions in other facilities)
• Hutchison Whampoa Ltd. expansion of Mexican
port facilities
– Hutchison Port Holdings (HPH) is the world's leading
port investor, developer and operator that operates
across Europe, the Americas, Asia, the Middle East
and Africa
– It operates in five of the seven busiest container ports
in the world, handling 13% of the world’s container
traffic
• U.S. is under-investing!
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BUILDING REGIONAL COMMUNITIES
NARC Programs
Economic and
Community
Development
Environment
Transportation
EDA
Water
Highway
Housing
Air Quality
Transit
Aging
Brownfields
Rail
Base Closure
Climate Change
Aviation
Workforce
Energy
Maritime
Homeland Security – Planning and Evacuation Management
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BUILDING REGIONAL COMMUNITIES
2008-2009 Legislation
Transportation
Economic
Development
Homeland
Security
Environment
SAFETEA-LU
Reauthorization
(expires 9/2009)
EDA
Reauthorization
(expires 9/2008)
Smarter Funding for
All America's
Homeland Security
Act
Climate Change
Infrastructure
Investment
Commission
(NARC included)
ARC
Reauthorization
(expires 9/2008)
NARC Grant Effort
FAA Reauthorization
Transportation and
Housing Choices Act
Nat’l Infrastructure
Bank
Housing Relief
(signed into law)
National
Innovation and
Job Creation Act
of 2008
Highway Trust Fund fix
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BUILDING REGIONAL COMMUNITIES
Water Trust Fund
Multiple Energy
Efficiency Bills
What to watch for
Transportation/Infrastructure
• Support Infrastructure funding bills and initiatives
• Reauthorization of Surface Transportation Bill
– Funding
– Program structure
– Delivery
– Regions respond:
– Force congress/administration to fully fund
transportation
– Increase authority – local/regional
– Modal integration
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BUILDING REGIONAL COMMUNITIES
Economic/Community
Development
• Authorize EDA
• USDA Rural Development
• HUD – questions about role in housing/mortgage
crises
• Workforce
• Commissions
•
•
•
•
Work to reauthorize EDA
Work with locals and states on housing issues
Innovative work force programs and policies
Get commissions up and running
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BUILDING REGIONAL COMMUNITIES
Security
• Where does all the money go?
• Monitor urban grants
• Regional Grants on coordinated
planning
• Regional innovation in evacuation
planning
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BUILDING REGIONAL COMMUNITIES
Environment
•
•
•
•
Water
Climate Change
Air Quality
Energy
•
•
•
•
Demand Congress fund water infrastructure
Get ahead of the climate change curve
Energy efficiency programs
Conservation programs – green infrastructure,
green building
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BUILDING REGIONAL COMMUNITIES
Global Warming and Energy
• Carbon may be the tax of the future
– Already being discussed in Congress
• Regions may have to account for the
effects of global warming through new
measures
• Energy is and will be in play
– Are we energy efficient?
– Are we sustainable?
– Are we safe and secure?
• (Urban/Rural) Air Quality and EPA
Standards – tightening
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BUILDING REGIONAL COMMUNITIES
What Will Happen in 2009?
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BUILDING REGIONAL COMMUNITIES
FY09 Appropriations
• All bills, except Mil-Con and Defense,
to be rolled into CR – unlikely work will
be done on others in September
• Majority of domestic spending
programs within NARC issue areas
receive plus-ups from Congress over
President’s request
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BUILDING REGIONAL COMMUNITIES
Second Stimulus
• Senator Byrd (D-WV) to introduce 2nd Stimulus package =
$24B in aid
• $10B infrastructure = $3.75B highways; $892M masstransit; $100M Amtrak; $200M airport improvements;
$1.5B energy initiatives
• $10B disaster relief = $3B Hurricane Katrina; $910M
wildfires in West; $1.8B FEMA; $1.82B CDBG
• $4B = other, including low income heating/cooling
assistance; science; etc
• Speaker Pelosi (D-CA) talking about 2nd Stimulus worth
$50B
• Unlikely either Chamber will have a bill hit the floor
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BUILDING REGIONAL COMMUNITIES
2008-2009 Key Players
President??
U.S. Senate
Boxer (D-CA)
Baucus (D-MT) Inhofe (R-OK)
Reid (D-NV)
Durbin (D-IL)
Byrd (D-WV)
Inouye (D-HI)
Clinton (D-NY)
Cochran (D-MS) Lieberman (I-CT) Hutchison (R-TX) McConnell (R-KY)
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BUILDING REGIONAL COMMUNITIES
Key Players
continued
U.S. House of Representatives
Pelosi (D-CA) Oberstar (D-MN)
DeFazio (D-OR)
Brown (D-FL)
Mica (R-FL)
Markey (D-MA)
Rangel (D-NY)
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Obey (D-WI)
Thompson (D-MS)
Blumenauer
(D-OR)
Lewis (R-CA)
Johnson (D-TX)
Hoyer
(D-MD)
Dingell (D-MI)
Rahall (D-WV)
Boehner
(R-OH)
BUILDING REGIONAL COMMUNITIES
Petri (R-WI)
Mollohan
(D-WV)
Key Players
continued
U.S. Governors
Rendell (D-PA) Corzine (D-NJ) Schwarzenegger (R-CA) Crist (R-FL)
Granholm (D-MI) Kaine (D-VA)
Patrick (D-MA)
Pawlenty (R-MN)
Perry (R-TX)
Culver (D-IA)
Sebelius (D-KS)
Strickland (D-OH)
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BUILDING REGIONAL COMMUNITIES
2009 Legislative Focus
Iraq War
Domestic
Security &
Preparedness
Infrastructure
Sustainability
Climate Change
ECONOMY
Energy
Independence
& Security
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BUILDING REGIONAL COMMUNITIES
Political landscape
•
•
•
•
•
•
2008 – 2012
Election
Congress adjourns
President needs 1-2 years – up to speed
Sets the stage for 2012
Prediction
– Congress/President engulfed in war (3-10
years) and economy (3 years)
– Want to ensure party majority
– Extremes will divide congress cause gridlock
– No significant legislation passed (2-5 years)
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BUILDING REGIONAL COMMUNITIES
Regions Respond
• Traditional decision making not
working – takes too long, too many
involved
• Lack of leadership and vision at the
top
• Transportation, infrastructure, other
issues are both vertical and
horizontal – regions can align needs
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BUILDING REGIONAL COMMUNITIES
Regions Respond
• Creating their own taxing structures
– San Diego, Phoenix, others…
• On the cutting edge
– Being leaders
– Out in front of ideas
• Fiscally constrained
• Help set priorities
– Between state and locals
– Among locals
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BUILDING REGIONAL COMMUNITIES
Other
• Regions as entrepreneurs
•
•
•
•
•
Service delivery
Business models
Local cost savings
Joint purchasing
Managing regional assets
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BUILDING REGIONAL COMMUNITIES
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– Support Regions – urban and rural –
large and small
– Will continue to advocate for Regions
as primary service delivery agents
– Will continue to advocate for the
primacy of local government and
elected officials
– Will continue to advocate for a
PARTNERSHIP with states and the
feds - not a subservient relationship
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BUILDING REGIONAL COMMUNITIES
NARC Outreach and Positions
• Multiple regional meetings
• Committee meetings
• Spectrum of ideas
– Devolution – stronger federal program
• Innovation – Empowerment –
Streamlining - Consistency
• We support a regional revolution
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BUILDING REGIONAL COMMUNITIES
A New National Plan
Today, the challenges of the 21st Century – global warming,
dwindling oil reserves, growing insecurity in the Middle East, and
an uncertain global economy – require a renewed national focus
on the infrastructure that is essential to our cities, our rural
communities, and our economy. Unfortunately, we have neglected
the state of America's infrastructure far too long, threatening our
economic prosperity and the future of our communities, urban and
rural.
Congressman Earl Blumenauer
“A National Plan to Reinvest In America”
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BUILDING REGIONAL COMMUNITIES