My name is Roy Kienitz and I am the Executive Director of the Surface Transportation Policy Project. We are a non-profit coalition of 200 groups working to ensure that transportation investments improve environmental quality, boost economic efficiency, and improve access to opportunities for all individuals.
Over the past two days, you have heard people echo what recent elections and polls have already told us that a growing number of people believe that curbing haphazard sprawl and promoting smarter growth are critical to maintaining the fiscal health, environmental quality, and overall quality of life of their communities.
One way to support smarter growth is to be more efficient about utilizing public infrastructure and services that have already been paid for, such as roads and transit, water and sewer lines, and other utilities. This approach is already the cornerstone of several smart growth initiatives such as those in Maryland, Oregon and New Jersey.
As we determine what action to take, we should be reminded that calls for smart growth originated first from citizens, then localities and states not from Washington. They have also come from all portions of the political spectrum. As such, we think it is reasonable for the federal government to provide the tools necessary to help communities meet their own smart growth goals. These tools should enable local and state governments to both preserve open space and revitalize existing communities.
Specifically, we have the following recommendations for federal action:
First, we support the current proposal for Better America Bonds. These bonds would carry no interest for 15 years, and offer the fiscal leverage to enable local, state and tribal governments to preserve open space, create or restore urban parks, clean up contaminated land, and stimulate construction and renovation projects in existing communities. Representing roughly $10 billion in bond authority, these flexible financing tools represent a major opportunity to revitalize our central cities, while also helping small towns and suburbs gain control over runaway sprawl. Broad support is already forming behind these Bonds, and they have even elicited a positive reaction from House Transportation and Infrastructure Committee Chairman Bud Shuster.
Second, to support the continued revitalization of central cities, Congress must oppose any efforts to undermine the Community Reinvestment Act, which requires banks to invest deposits back into the communities from which they come. Since 1977, this law has strongly contributed to the renaissance of many older urban neighborhoods, alleviating the pressure for ever-outward development and infrastructure spending at the fringes of our metropolitan areas. This law also helps to ensure that residents of less affluent communities can share at least some of the investment benefits that their personal savings generate something that most people take for granted.
Third, to bring more large-scale private investment to low-income urban communities, we also support the proposal for a new American Private Investment Corporation which would provide preferential financing packages to businesses that invest in urban areas. This proposal, which is modeled on the existing Overseas Private Investment Corporation, would provide a needed boost to attract private investors to areas that would benefit greatly from new development or redevelopment.
Fourth, to give communities another tool to help preserve open space and improve parks, we propose to strengthen the Land and Water Conservation Fund by boosting its funding by several hundred million dollars per year. These funds would pay for the acquisition of green spaces across the nation and would come to communities in the form of flexible grants, loans and easements. We understand that there are a number of proposals before the committee to boost funding for this program, and Senator Boxer's is clearly a standout.
Finally, since smarter growth also means better coordination between transportation and land use decisions, we hope the Committee can support an increase in funding for TEA-21's Transportation and Community and System Preservation Pilot Program (TCSP) to $50 million for the next year. We applaud Senator Wyden's leadership on creating this program, which is currently funded at $25 million per year to support local efforts like traffic calming, transit-oriented development, and the creation of downtown intermodal centers. Even before the first round of grants has been awarded, it is obvious that there is enormous demand for this program. The US DOT received over 500 proposals from local governments requesting more than $400 million in assistance. Increased funding would enable US DOT to support a greater number of worthwhile projects.
The TCSP program underscores the fact that transportation spending plays an especially important role in supporting smart growth. For this reason, we appreciate the Administration's proposal to increase funding levels for transit, transportation assistance for workers getting off welfare, and other programs, although we recognize that such programs fall under the jurisdiction of the Banking Committee. Similarly, we applaud efforts to secure increased funding for the Congestion Mitigation and Air Quality Improvement Program, but understand that this introduces a number of complications relating to the funding formulas that were negotiated in TEA-21.
In conclusion, the federal government has a critical role to play in providing financing tools to help local, state and tribal governments achieve their smart growth goals. While it is difficult to claim that any one metropolitan area in America is the embodiment of smart growth, there are hundreds of places that are striving to preserve open space, reduce the fiscal costs of runaway sprawl and create livable places for all residents. We need more examples like the City of Chattanooga's downtown revitalization and greenway plan, New Jersey's open space initiatives, and Oakland, California's transit-oriented development at its Fruitvale light rail station. Wherever the place and from whatever end of the political spectrum, localities are asking for assistance on smart growth, and the federal government has a great opportunity to help.
Thank you.