From the Director:
Federal Issues – Telecommunications, Economic Development & Transportation
By Stan Finkelstein

Potential Action on Federal Issues

This fall, when Congress returns from its August recess after Labor Day, members will likely begin or continue to review a number of important issues to cities. Cities are encouraged to stay in contact with their federal congressional delegation about the importance of retaining local authority and revenues related to telecommunication. Thanks to those city officials who were able to meet with their delegation during the August recess to share city concerns on these issues. Please watch for Action Alerts related to these and other federal issues as Congress takes up a busy fall agenda.

Telecommunications Act Rewrite Is Underway

Several bills have already been introduced in Congress, which signals the beginning of serious debate about the future of telecommunications regulation. On July 27, just before Congress began its August recess, Sen. John Ensign (R-Nev.) introduced the Broadband Investment and Consumer Choice Act (S.1504). This rewrite of the 1996 Communications Act would, according to the National League of Cities’ analysis, remove government’s role in every aspect of communications services. Almost every aspect of the bill is inconsistent with city interests and local control over revenues, franchises, and rights-of-way.

While the process of adopting a rewrite of the communications laws is likely to take several years, Ensign’s bill is the first of several that are expected to be introduced. Ensign’s bill is one goalpost on the spectrum of bills likely to be introduced and it will likely be the most deregulatory of the proposals.

At the National Conference of State Legislatures annual meeting this month in Seattle, telecommunications was a hot topic of debate. Thanks to Olympia Mayor Mark Foutch for presenting the NLC position about the importance of local authority in telecommunications regulation and taxes. We must continue to remind Congress of the need for local authority.

AWC, WA Telecommunications Officers and Advisors (WATOA), the National League of Cities (NLC), and others have been preparing material on this issue and coordinating congressional visits. In addition, both AWC and WATOA released Action Alerts on this subject over the past couple of weeks.

Cities can find more information about these new proposals and get information about the city issues by visiting the NLC website at www.nlc.org. You may also contact Sheri Sawyer at sheris@awcnet.org or Victoria Lincoln victorial@awcnet.org for more information.

Economic Development

In response to the U.S. Supreme Court decision Kelo v. City of New London, related to the use of eminent domain for economic development purposes, Congress may be taking action restricting the use of federal funds for local economic development efforts.

Prior to the August recess, nine separate bills that would limit the exercise of eminent domain for economic development purposes were introduced in Congress. The two principal bills, H.R. 3135 and S. 1313, would prohibit states and cities from using federal funds to exercise eminent domain for economic development purposes.

In addition, the House of Representatives adopted an amendment to its housing appropriations bill, H.R. 3058, that would prohibit the use of federal funds to “enforce the judgment” in the Kelo case. While the Senate Appropriations Committee did not include this amendment in its version of the bill, the threat of an amendment is likely to resurface when the bill is considered by the full Senate after the August recess.

In our state, the use of eminent domain is already limited by the state constitution. For more information, see the article U.S. Supreme Court Condemnation Ruling to Have Little Washington Impact on AWC’s website at www.awcnet.org/kelo.

SAFETEA-LU - Transportation Funding Approved Prior to August Recess

Congress and the President have finally signed into law the new highway act after more than two years of deadlocks and failed negotiations. The Safe Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users, governs federal fiscal years 2004 through 2009. The $286 Billion six year act is divided up with 75% for highways (with an emphasis on safety), 18.5% for transit, and approximately 6% for primary safety projects. Every state is to receive at least 92 cents for every $1 of contributed federal gas tax.

Washington State did very, very well. Preliminary information shows that we are receiving approximately a 95 cent return on the dollar with an annual average of $622 million for our state. This represents an approximate increase of 26% over the previous TEA-21 funding.

We were also unique in respect to both our House and Senate Delegation coordinating their requests, resulting in projects earmarked from both the House and Senate. There are 133 individual highway projects and 11 transit related projects. This includes $220 million for the Alaska Way Viaduct under the new Projects of National and Regional Significance category. One consequence of the numerous projects is that the balance of SAFETEA-LU “formula” funds Washington receives for activities such as interstate maintenance, national highway system funding, etc., are reduced in order for each state to stay within the “return on the dollar” formula Congress has set.

The Washington State Department of Transportation Highways and Local Programs Division has already been proactive in anticipation of receipt of these funds. As we noted in the July Bulletin, the following federal grant programs are underway:

• Federal Enhancement Program - $42 million is available to public agencies and non-profit organizations. Regional Transportation Planning Organizations will prioritize projects and a statewide Enhancement Committee will submit recommendations to the WSDOT Secretary for final selections.
• Federal Intersection and Corridor Safety Program - $20 million is available for cities, towns, counties, ports, and tribal governments.

For more information on these programs, please see www.wsdot.wa.gov/TA/HomePage/HLPHP.html.

Thanks again to those who met with your Congressional representatives during the summer break, and please, continue to contact your members as they address these very important city issues.

 
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