5340: High Density Factor

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5340 High Density Factor

• Its Impact on High Growth Regions

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What is SAFETEA-LU?

• On August 10, 2005, President Bush signed the
  Safe, Accountable, Flexible, Efficient
  Transportation Equity Act A Legacy for Users
  (SAFETEA-LU), providing 286.4 billion in
  guaranteed funding for federal surface
  transportation programs over five years through
  FY 2009, including 52.6 billion for federal
  transit programs a 46 increase over transit
  funding guaranteed in TEA-21.

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What is 5340?

• 5340 is a special fund within SAFETEA LU that
  provides additional resources to strengthen
  transit infrastructure in both Growing States and
  High Density States.

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What was 5340s Intent and How Does it Work?

• 5340 was originally inserted into SAFTEA-LU with
  the goal of proactively benefitting High Growth
  areas that need to expand service.

• 5340 has two distribution factors
• 50 High Growth
• 50 High Density

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How does the High Density Factor work?

• The 50 High Density distribution factor
  designates funds to states that have a population
  density of 370 people per square mile. These
  funds are apportioned only to urbanized areas
  within those states.

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How does the High Growth Factor work?

• The apportionment is based on state population
  forecasts for 15 years beyond the most recent
  Census amounts apportioned for each state are
  then distributed between urbanized areas and
  rural areas based on the ratio of urban/rural
  population within each state.

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What is the concern?

• While the intent was good, the outcome is not.
  The high density formula skews the funding
  distribution away from the states where High
  Growth is actually occurring to a very few
  states.

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What is the outcome?

• States that are no longer in a high population or
  economic growth phase are receiving the lions
  share of 5340 funding distribution, while the
  regions that are experiencing explosive growth
  lose the funds needed to build the infrastructure
  to support smart development.

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What is the impact?

• In 2008, the high density factor in 5340
  redistributed over 120M away from high growth
  states to eight states whose infrastructure is
  well established.

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FY08 Regional Apportionment Variance

• SWTA Region
• Arkansas
• Arizona
• Colorado
• Kansas
• Louisiana
• Oklahoma
• New Mexico
• Texas

• NE Region
• Connecticut
• Delaware
• Massachusetts
• Maryland
• New Jersey
• New York
• Pennsylvania
• Rhode Island

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What do we recommend?

• Members of South West Transit Association (SWTA)
  recommend
• Elimination of 5340 in the 2009 federal
  authorization
• Allow the funding to remain in 5307/5311 for
  equitable apportionment to all states

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Why?

• This move would not penalize high density states,
  but rather allocate funding to all states so that
  regions where high growth is occurring can be
  better equipped to support smart growth for
  economic development, jobs creation,
  environmental and resource conservation.

The original intent of 5340.
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For more information

• Contact Kristen Joyner, Executive Director, South
  West Transit Association (SWTA), kjoyner_at_swta.org
• Refer to website www.swta.org
• Call 512-237-9733