Agenda - Council Work Session - 02/28/2012

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WORK SAMPLE LQCKRIDOE GR1NDAL NAUEN TO: FROM: DAIE: RE: nn,,,esrow hitt . ,,,I*Lvriov Axtnue Souk hm•tpeO41n4 3:U14179 T 6unofl F 6ra.rity lit Client Lockridge Grindal Nauen P.L.L.P. October 25, 2011 Federal Update krtoe:,n.e. ti t:t0 4:1-aocds•ugxa T Z2.444.9854 24496 0a7 F i1-}N.98h` MEMORANDUM Below you will find the October update. We have included televaot federal activities and an outlook on the fiscal year 2012 appropriations and transportation authorization process Additionally, we have outlined the expected leative agenda for the 112. Congress as framed by the recent debt and deficit discussions and have provided strategy recommendations for consideration CONGRESSIONAL UPDATE: Over the past month, the House and Senate have traded a couple of weeks with one being in session while the other is out of session. Last week the House was in recess, this week the Senate hasadjourned and will return to legislative action on October 31, 2011. Although theyhave bete in and out ofsesdcat. there has been be a lot of transportation and transit related action in the last month_ TRANSPORTATIONAVTHORIZATION: As you may recall, current transpatatica programs are currently operating under their seventh extension which is set to expireon March 31,2012. Traditionally, transportation programs are reauthorized even six years, putting the latest reauthorization close to two years overdue. Previously, Senate leaders and House leaders were fairly far apart as to how they would proceed with a new bill. The Senate was looking at pursuing a two-year bill which would require that they find additional revenue to support current spendmglevels. Meanwhile, House leaders were pushing a bill that would only fond what current funding into the Highway Trust Fund could support Recently however, House leaders gave Transporration and Infrastructure Chairman John hfica (R-FL) the go ahead to aotk with the Senate our a new six -seat bill which would fiord spending at its current levels. While new revenue still needs to be found, des is a significant step which has begun to move the process forward In the meantime, the Senate is continuing to move forward on a smaller two-year bill but are open to finding funding for a six -year treasure. November 8,2011 Page 3 ACTION ITEM: Ire will continue to update you on rteu•Jobs proposals as the ybecome available and recommend specific actions ahead at advancing your f federal transit objectives. FISCAL YEAR 1012 APPROPRIATIONS: The House and Senate cleared a sheet -term spending bill to keep the government running through November IS. With the federal government currently operating under this Continuing Resolution,work on a final budget solution for Fiscal Year 2012 cemtinuea Last week, the Senate continued (her work on FY2012 appropriator. and began consideration of a "minibus" appropriations measure which combined the Agriculture. Commerce, lustre and Science and Transportation and Housing appropriations measures Senate leaders hoped to pass these spending measures by the end of last week but the process moved slowly and they adjourned for recess prior to completing the measure .Although they are likely to complete the bill on November lm when they return the slow pace has put into question how many more appropriations bills they will be able to move before the end of the yea Congress has in recent years —and under control of both patties —relied often on omnibus nteasmes and even long-term continuing resolutions to fund the federal government. However, it remains unclear whether a final budget solution will come in the form of a large package of bills known as an "omnibus", a series of smaller"mhtibts" packages, or a longer -tern Continuing Resolution atlast years fundinglevels. ACTION ITEM: We trill roulharae to monitor thin process and alert you (sam• arnendntentrhueasureswhich could lrnpad yourfederal priorities. In addition, me sr/I/monitorthis process foropportunities to hlghltghlyoaarprlor/der among keypollc croakers and the programs whkhyou support. DEBT AND DEFICIT AGREESIENT/ONGOTNGDISCUSSIONS: On August 2, 2011 Congress cleared a debt ceiling deal at the 1lehour in an effort to avoida government default. The cuamt $14.3 trillion ceiling on federal borrowing winnow be increasedby an amount between 52.1 trillion and $2 4 trillion, a sum presumed sufficient to allow the Treasury Department to operate beyondthe 2012 election and into 2013. The increase will comein two steps: $900 billion immediately and the second increase of S 1.2 trillion to S15 trillion would he available later. The size of the second increase will be determined by actions Congress takes to curtail growth in the debt). The deal cut about $1 trillion (over I ilyears) in current spending and created a special "Sups Committee" to reconunend more than S 1 frith Ott in additional reductions. For reference, the debt reduction panel timeline Is below. • Oct. 14:Deadline for standing committees to fotward their recommendations to joint committee. • Nov. 23: Deadline fcajoint committee to vote on legislative proposals,svth a l0-year deficit reduction goal of $1.5 trillion. • Dec. 2:Deadline forjoint committee to formally report proposals. November 8,2011 Page 2 The Senate Environment and Public Works (EPW) Committee announced last week that they have scheduled a November Oth markup of a two-year surface transportation bill. Plans to advance the bill had previously stalled as the Senate Finance Committee continues to look for ways to bridge a $12 billion gap between the S 109 billion cost of the bill and the motley the Highway Trust Fund is projected to take in through existing fuel taxes. While financing remains the immediate obstade for both a short-term and Ion g-term deal, otherissues remain on the table. For example, there have been efforts to amend the transportation enhancements program, which requires states to set aside some of their federal highway funds for such improvements as bicycle lanes or pedestrian paths. It is expected that the program will be revamped in some manner. ACTION ITEM: Prior to the passage oldie extension, yennray utsh to rend a kter to the entire Delegation encouraging (hens to do Just that Lockridge Grinda/aVauen harprmfded you with additional draft letersjor your consideration which thanks the delegation forpassing the extension and once again lays out your priorities. JOBS LEGISLAIION: Several weeks ago, the Senate fell short of the 60 votes necessary to take up the President Oba oa s American Jobs Act leaslatioa Since then, Senate Majority Leader Harty Reid(D-NVr) has started to move ahead with a strategy to vote onpopular portions of President Obama'sjobs-creation bill. Last week, ajobs bill which was aimed specifically atproviding funding for teacher, firefighter and police jobs (S. 1723) failedto pass the Senate. Recently, Democratic Leaders indicated that they will be tinning their focus to transportarionjobs. On October 21, 2012 Senate Sfajodty Leader HarryReid (D-NV) and Senator Amy Klobuchar (D-MN) introduced the "Rebuild America Jobs Act" which seeks to aeatejobs with a short-term infusion of S60 billion in road, bridge, rail, transit, and aitpertprojects. It would be funded with a surtax on income above $1 million. The plan includes: • $27 billion for highway and rail proleets. • S4 billion specifically for passenger -rail upgrades, including sonic high-spccdrail projects, and $2 billion for An nakto upgrade and replace equipment and infrastructure. • S3 billion to capitalize public transit projects. • S6 billion for"fixed guideway'• light rail and electric trolley busts, as well as bus systems. • $S billion for competitive grants available for any transportation additions and upgrades. • 52 billion for airport development grants. • 51 billion for the Federal Aviation Administration to advanu its NextGen air traffic control system upgrade. • S10 billion to establish a nor Donal infrastructure bank to fund future transportation projects, seeking to help to match public and private money. The measure is slated to be taken up in the Senate when they return from recess next week. November8,2011 Page 4 • Dec. 23: Deadline for House and Senate to yore onproposals, without amendment. • Jan.13:Deadline for enactment of at least S1.2trillion in d eficit reducti on, or across-the-board spending cuts will be triggered. • Jan. 2, 2013:Iftriggered,across-the-board cuts will take effect. As you can see above, the 14. of Octobermasked the deadline for Committees to forvard their recommendations. Congressman Collin Peterson(D-lit'`-07) said he's been talking to Senator Max Baucus(D-MT)(a superconunittee member and fellow Democrat) aboutagricultual subsidies Senator Carl Levin (D-111) sent the panel a seven -part tax plan. Marvland Gov. Martin O'Malley, the chaimt_an of the Democratic Governors Association, and Governors Mark Dayton of \iumeseta and Christine Gregoire of Washington met separately with the Serrate Democratic supercommiaee members and the House Democratic supercommntteemembers in the Capitol. The legislative discussions surrounding the debt and deficit have taken and will continue to take up a significant amount of time our Capitol Hill over the neat six months and beyond. tt ith this said, almost every portion of the federal budget has the potential to be impacted as the"Super Committee" takes up the work of finding cuts which seek to prodnc clung -term savings (including transportation and transit funding). hi an effort to educate Members of Coup ens about the importance of transit, this will be a critical time to be engaged in advocacy on the Hill. ACTION ITEM: Ire will continue 10 nmrtitordebtanrd deficit discussions and the work ofthe' "Sigler Committee" and seek opportunities for you to engage Congress -Man effort to ensure that Members of Congress understand the importance oftransll in urban conurrunitfes. STRATEGYRECOSLMENDATIONS: Last year at this time we recommended a mmmbet of actions aimed at suaag heningyourprofile on Capitol Hill through enhancedcommurication. Some of these recommendations have been acted on while others have not kith this in mind, we respectfully submit the following for you consideration. Other recommendations have been outlined in the above memorandum. • Federal 2YansitAdnnnldrafter and CongressfoszrlDelegatlonFi -m: This annual fly-inw•ould allow you to interact with high ranking FTA officials and promote ,car on -going projects. The FTA Hy -in is an excellent opportunity to engage the administrative branch and relay to them the support of our Congressional Delegation COMPLETED: Mareit 31,2011 • Stgf'Stnnmtrs: Sununits would be held in your statewith our Congressional Delegationand'or their local and D.C. staff to highlight andbr corm a specific project or facility. This focused approach to individual coaidrrs and projects will glee staff a unique perspective and an interactive experience with each project. Spacing these events out will also allow you to have multiple opportunities to showcase their federal priorities. COMPLETED: Starch 16, 2011 • .Monthly Repons: Fregoart updates fronayou staffprotided to all Delegation staff and Members in order to keep our federal partners aware of any and all developments regarding your priority projects. This will enhance their level of engagement with projects and give helpful background on project history: ONGOING Lockridge Grindal Nauen 12