[House Hearing, 113 Congress] [From the U.S. Government Publishing Office] BUILDING THE FOUNDATION FOR SURFACE TRANSPORTATION REAUTHORIZATION ======================================================================= (113-48) HEARING BEFORE THE COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE HOUSE OF REPRESENTATIVES ONE HUNDRED THIRTEENTH CONGRESS SECOND SESSION __________ JANUARY 14, 2014 __________ Printed for the use of the Committee on Transportation and Infrastructure Available online at: http://www.gpo.gov/fdsys/browse/ committee.action?chamber=house&committee=transportation ---------- U.S. GOVERNMENT PRINTING OFFICE 86-278 PDF WASHINGTON : 2013 ----------------------------------------------------------------------- For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512-1800; DC area (202) 512-1800 Fax: (202) 512-2104 Mail: Stop IDCC, Washington, DC 20402-0001 COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE BILL SHUSTER, Pennsylvania, Chairman DON YOUNG, Alaska NICK J. RAHALL, II, West Virginia THOMAS E. PETRI, Wisconsin PETER A. DeFAZIO, Oregon HOWARD COBLE, North Carolina ELEANOR HOLMES NORTON, District of JOHN J. DUNCAN, Jr., Tennessee, Columbia Vice Chair JERROLD NADLER, New York JOHN L. MICA, Florida CORRINE BROWN, Florida FRANK A. LoBIONDO, New Jersey EDDIE BERNICE JOHNSON, Texas GARY G. MILLER, California ELIJAH E. CUMMINGS, Maryland SAM GRAVES, Missouri RICK LARSEN, Washington SHELLEY MOORE CAPITO, West Virginia MICHAEL E. CAPUANO, Massachusetts CANDICE S. MILLER, Michigan TIMOTHY H. BISHOP, New York DUNCAN HUNTER, California MICHAEL H. MICHAUD, Maine ERIC A. ``RICK'' CRAWFORD, Arkansas GRACE F. NAPOLITANO, California LOU BARLETTA, Pennsylvania DANIEL LIPINSKI, Illinois BLAKE FARENTHOLD, Texas TIMOTHY J. WALZ, Minnesota LARRY BUCSHON, Indiana STEVE COHEN, Tennessee BOB GIBBS, Ohio ALBIO SIRES, New Jersey PATRICK MEEHAN, Pennsylvania DONNA F. EDWARDS, Maryland RICHARD L. HANNA, New York JOHN GARAMENDI, California DANIEL WEBSTER, Florida ANDRE CARSON, Indiana STEVE SOUTHERLAND, II, Florida JANICE HAHN, California JEFF DENHAM, California RICHARD M. NOLAN, Minnesota REID J. RIBBLE, Wisconsin ANN KIRKPATRICK, Arizona THOMAS MASSIE, Kentucky DINA TITUS, Nevada STEVE DAINES, Montana SEAN PATRICK MALONEY, New York TOM RICE, South Carolina ELIZABETH H. ESTY, Connecticut MARKWAYNE MULLIN, Oklahoma LOIS FRANKEL, Florida ROGER WILLIAMS, Texas CHERI BUSTOS, Illinois TREY RADEL, Florida MARK MEADOWS, North Carolina SCOTT PERRY, Pennsylvania RODNEY DAVIS, Illinois MARK SANFORD, South Carolina CONTENTS Page Summary of Subject Matter........................................ iv TESTIMONY Hon. Mary Fallin, Governor, State of Oklahoma, on behalf of the National Governors Association................................. 4 Stuart Levenick, Group President, Caterpillar, Inc............... 4 Hon. Kasim Reed, Mayor, City of Atlanta, on behalf of the U.S. Conference of Mayors........................................... 4 Lawrence J. Hanley, International President, Amalgamated Transit Union.......................................................... 4 PREPARED STATEMENTS SUBMITTED BY MEMBERS OF CONGRESS Hon. Howard Coble, of North Carolina............................. 46 Hon. Steve Daines, of Montana.................................... 47 Hon. Nick J. Rahall, II, of West Virginia........................ 49 PREPARED STATEMENTS SUBMITTED BY WITNESSES Hon. Mary Fallin................................................. 52 Stuart Levenick.................................................. 59 Hon. Kasim Reed.................................................. 68 Lawrence J. Hanley............................................... 78 SUBMISSIONS FOR THE RECORD Alliance for Toll-Free Interstates, written testimony............ 105 Kurt J. Nagle, President and CEO, American Association of Port Authorities, written testimony................................. 109 Edward A. Gottko, PWLF, President, American Public Works Association, written testimony................................. 112 International Bridge, Tunnel and Turnpike Association, written testimony...................................................... 120 Transportation Equity Caucus, written testimony.................. 124 Victor S. Parra, President and CEO, United Motorcoach Association, written testimony................................. 129 [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] BUILDING THE FOUNDATION FOR SURFACE TRANSPORTATION REAUTHORIZATION ---------- TUESDAY, JANUARY 14, 2014 House of Representatives, Committee on Transportation and Infrastructure, Washington, DC. The committee met, pursuant to call, at 10:04 a.m., in Room 2167, Rayburn House Office Building, Hon. Bill Shuster (Chairman of the committee) presiding. Mr. Shuster. The committee will come to order. First I would like the opportunity to welcome everyone to today's hearing. It looks like we have a full house, which is a good sign. This is the first hearing for the committee this year, and the subject matter is of critical importance to the Nation, to the economy, and certainly to our transportation infrastructure system. I am pleased to welcome our distinguished witnesses: The Governor of Oklahoma and former colleague, Mary Fallin. Mary, it is great to see you, and Governor, it is great to see you today. Mr. Stuart Levenick, group president of Caterpillar. Nice to see you, sir. The Honorable Kasim Reed, the mayor of Atlanta. Mr. Mayor, thanks for being here with us. And Mr. Lawrence Hanley, international president of Amalgamated Transit Union. Thank you all for being here. We certainly look forward to hearing from all of you today. Transportation is important, I think we all know that, and sometimes we forget the importance of it in our daily lives. But it is how people get to work, it is how we get our children to school, we go to the store to buy food and clothes and any other necessities as well as visiting our family members around the country. But it is also about business. It is critical to the supply chain, how it functions, how raw materials get to factories, how finished products get to market, and how food gets from farms to our kitchens. It allows American business to be competitive in the global marketplace and for our economy to prosper and grow and create jobs. And that is absolutely essential to this bill and to any infrastructure bill we do, and that is to talk about the jobs. Not just the construction jobs, we certainly know there are going to be construction jobs created, but it is the long-term jobs. And so that Caterpillar, when they are grabbing market share in the world economy, they are going to be hiring hopefully more people back in Peoria or their other plants around the country, creating those jobs to create those machines that again go into the world economy. And sold there and make our economy stronger. There is a long history of a strong Federal role in transportation. I go right back to the key philosopher that our Founding Fathers all read when they were developing this Nation, this constitution, Adam Smith was the father of modern economics. And he believed there were three duties of Government: To provide security, preserve peace, and to erect and maintain public works to facilitate commerce. And with those thoughts, our Founding Fathers went forward and drew up the Constitution. Article 1, Section 8 talks about the interstate commerce and post roads. And those post roads today are the highways, the byways, the transportation system of today, as well as the inland waterways and the harbors that were absolutely critical at the beginning of our Nation. The Federal Government continued to invest over the last 200 years from the Transcontinental Railroad, to the Panama Canal to the Interstate Highway System, all making significant impacts to the efficiency and to the economy of the United States. Last Congress we continued this history by passing MAP-21, which reauthorized Federal surface transportation programs, and MAP-21 expires in September of this year. My hope is to have a reauthorization done on time, and in order to do that the committee's work is ramping up to get a long-term bill. Today we are formally kicking off this reauthorization process with this hearing. In the coming months, we plan to hold hearings and roundtable discussions to give stakeholders an opportunity to share their policy priorities and concerns. We hope to take committee action in late spring, early summer with the goal to be on the House floor before August recess. In this timeframe will give us a time to conference that bill with the Senate. I believe this bill needs to be bipartisan, much the same way we moved forward with WRRDA, to build consensus working together and making sure we are educating, and all of you as stakeholders in this room, helping to educate Members of Congress, as to the importance of this bill, what it means in their districts, what it means to their States and their States' and districts' economy. The next bill must ensure that our surface transportation system can continue to support the U.S. economy and provide Americans with a good quality of life. And as I said, this bill is about jobs. It is about providing a strong physical platform for U.S. companies to compete at home and abroad. It is about making sure we can purchase goods and services which we have come to rely on in our daily lives. And as I said and I will keep saying, it is about jobs. Not only the construction jobs but the jobs that people are going to be able to create in factories around this country and also people going into the stores and not paying more but paying less for those products that get efficiently to their shelves so they have more money in their pockets to spend money on other things that they want in their lives. So how do we get there? This bill will be built around key principles. This bill needs to be fiscally responsible and to build on the reforms of MAP-21. We need to continue to reduce regulatory burdens, we need to make sure our Federal partners have flexibility in how they spend their money and approve projects. We also need to focus on freight mobility. Chairman Jimmy Duncan's special panel on freight wrapped up this October. An independent panel provided us with a lot of good recommendations that we need to take a hard look at. We can't afford to be stuck in the past or we will be left behind, more assuredly. We should encourage our Federal partners to think outside the box in how to address our transportation challenges. So we need to promote innovation and lay the foundation for emerging technologies. By passing the next surface transportation bill we can ensure Americans quality of life and facilitate economic growth for years to come. So I look forward to hearing from our distinguished panel, and with that will turn to the ranking member on the Highway Transit Subcommittee, the honorable gentlelady from Washington, DC. Ms. Norton. Thank you, Mr. Chairman. I certainly had not intended to make an opening statement because Mr. Rahall is shortly here. I believe he was on C-SPAN this morning. But since he is not here, and I know he will have something to say when he comes, I want to say, Mr. Chairman, how encouraged I am by your opening statement and by our beginning the year with this hearing. With every indication that we will have a new bill, the Democrats among ourselves have been meeting, to talk about priorities. Of course, our major concern is the great dilemma of surface transportation and of this committee. And that is as our trust fund evaporates, and I don't believe that that is too harsh a word, whether we will be innovative enough to come up with a way to pay for this bill that will attract both Democratic and Republican support. And, Mr. Chairman, I have no doubt, given your leadership on the WRRDA bill, that that is not a task beyond you, or beyond this committee. And I thank you very much, Mr. Chairman, for not allowing us to go home in January without casting the opening net for the new surface transportation bill for 2014. Thank you, Mr. Chairman. Mr. Shuster. I thank the gentlelady. And with that again Governor Fallin has got a hard stop, so we want to get started with her. And then I would encourage the witnesses to maintain the 5- minute rule. I have been known to be brutal with the gavel and the clock, but since we have such a distinguished group here, I may be a little weaker today. But with that, I would like to allow Mr. Markwayne Mullin to introduce the Governor of Oklahoma. Mr. Mullin. Thank you, Chairman. It is a great honor I have to introduce our honored guest. Governor Mary Fallin, from the great State of Oklahoma. What an honor to have you back. I know this used to be your committee. And you are going to bring a very unique perspective being that you served our great State not only on the Federal level but now on the State level. Transportation is obviously vitally important to not just our State but the entire country. It is one thing that in the constitution that definitely specifies this is the area that Congress has control over. So Governor Fallin, what an honor it is to have you back in DC, and I look forward to hearing your testimony. Mr. Shuster. And with that I ask unanimous consent that our witnesses' full statements be included in the record. And with that, yield to the Governor of the great State of Oklahoma. TESTIMONY OF HON. MARY FALLIN, GOVERNOR, STATE OF OKLAHOMA, ON BEHALF OF THE NATIONAL GOVERNORS ASSOCIATION; STUART LEVENICK, GROUP PRESIDENT, CATERPILLAR, INC.; HON. KASIM REED, MAYOR, CITY OF ATLANTA, ON BEHALF OF THE U.S. CONFERENCE OF MAYORS; AND LAWRENCE J. HANLEY, INTERNATIONAL PRESIDENT, AMALGAMATED TRANSIT UNION Governor Fallin. Thank you, Mr. Chairman. It is a great pleasure to be here. And Ranking Member Rahall, it is good to see you. And, Congressman Mullin, thank you very much for that kind introduction. And members of the committee, it is a great pleasure to be here today on behalf of our Nation's Governors in front of the Transportation Committee. As chair of the National Governors Association, Governors want to work with our Federal partners on the surface transportation reauthorization. As a former member of the Transportation Committee and now having the perspective of being a Governor, I understand now more than ever the importance of Governors and the NGA and the Transportation Committee working together on the surface transportation reauthorization. Our Nation's transportation infrastructure systems support and enhance economic growth of the States and the country, sustain our quality of life, and enable the flow of interstate and international commerce. However, previous surface transportation reauthorizations and their string of legislative extensions created uncertainty, not only on the national level but certainly on the State level. Our States took action to maintain and develop our vital infrastructure. But, Governors agree that successful State action does not justify Federal disengagement. Governors believe that surface transportation requires both a long-term vision and funding stability to provide for our Nation's diverse mobility needs. As CEOs of our States, Governors understand the fundamental importance of surface transportation to economic competitiveness and job growth. Continued Federal investment is necessary to leverage and create a cohesive transportation system across the Nation. The burden of maintaining the Nation's entire transportation network cannot be left only to the States. Federal, State, and local governments must partner to invest in quality infrastructure to meet our Nation's transportation needs. Investing today in transportation is investing long term in our economic vitality and also in the safety of our citizens. Of course, infrastructure includes more than just transportation, and I want to take a moment to commend this committee on the passage of the 2013 WRRDA bill. This reauthorization remains an NGA priority. Stewardship of our water infrastructure resources is vital to safety, environmental protection, and economic development. We also recognize that our Nation's infrastructure systems are interconnected. State-of-the-art ports and waterways must have state-of-the-art highways, transit, and rail systems. As Congress begins its work on MAP-21, Governor support continuing the user-pays principle to guide transportation funding and placing all options on the table for evaluation. Governors support Federal funding mechanism designs to maintain reliable, long-term funding certainty. Governors support outcome-oriented performance measures developed by State and localities. We believe levels of Governments must cooperate to improve and ensure safety and security of our infrastructure systems. Governors appreciate that MAP-21 reflected many of the NGA priorities. Governors supported the preservation of innovative financing tools, such as public-private partnerships and the expanded capacity of the Transportation Infrastructure Finance and Innovations Act. Let me emphasize that States need Federal funding stability and certainty to pursue long-term planning and project delivery. Now, next I want to mention municipal bonds, because they have assisted our States, our cities, and our counties in financing our infrastructure needs. As you know, the Federal Tax Code includes an exclusion from income on interest earned on municipal bonds. Ending or capping the Federal exclusion from income for municipal bond interest would increase the costs of financing infrastructure projects. It would trigger higher interest rates by at least 20 basis points. And that, in effect, would chill the project, or trigger higher taxes on citizens to fund our infrastructure needs. There have been studies that show proposals to cap or eliminate the interest exclusion on State and local tax deductibility would bring a net loss of approximately 417,000 jobs, and the loss of $71 billion in real gross domestic product over 10 years. Governors believe Federal taxes, and Federal laws or regulations should not increase the costs of States to incur the issue of municipal bonds or decrease investor appetite to purchase them. Infrastructure requires an intergovernmental partnership and all levels of Government have a crucial role to play to achieve overall success. Governors look forward to working with this Congress and with this committee on the reauthorization of MAP-21. Thank you very much, Mr. Chairman. Mr. Shuster. Thank you very much, Governor. And I would be remiss if I didn't call out a name of your long serving Secretary of Transportation, Gary Ridley. I see him over there. As I think he may be the longest serving State DOT Secretary in the United States. So watch out. It is good to have you here, a real expert with us here today. Next, Mr. Levenick, from Caterpillar. Please proceed. Mr. Levenick. Well, Chairman Shuster, Ranking Member Rahall, and distinguished members of the committee. Thanks very much for the opportunity to testify today about the reauthorization of our surface transportation system and the importance of our transportation infrastructure to companies like Cat, as we do business and compete in the global marketplace. My name is Stu Levenick. I am a group president for Caterpillar, responsible for leading the company's customer and dealer support organization, which provides integrated supply chain, transportation services, service parts logistics to Cat dealers and customers around the world. It is probably no surprise to anybody in the room that a company like Caterpillar, manufacturing bulldozers, is a big supporter of infrastructure investment. But for us, and my purpose here today is not just about selling more machines and jobs, it is about the drag our poor infrastructure has on the U.S. economy, our ability to efficiently import and export, and consequently the adverse impact it has on U.S. competitiveness. As one of the America's leading exporters, we are keenly aware of the importance of exports for job creation and economic expansion. We also understand how absolutely critical it is to have an effective supply chain if we are to maintain our global leadership as a U.S. manufacturer. Today, Cat exports to every region of the world. 2012, we exported over $22 billion. These are products from the United States which must travel through multimodal transportation systems that includes; roads, rail, water, and air. The condition and integration of these various models have a significant and direct impact on our ability to move products quickly and efficiently at the lowest possible cost. As the world marketplace expands and our Nation faces increasing competition from around the world, our ability to move goods as quickly and efficiently as possible takes on an even more important role. Our transportation system is the backbone of our economy. Economic opportunities are directly tied to the efficiency and reliability of this system, but we are relying on investments made decades ago to sustain our growing and changing economy. Our transportation network is aging, it is underfunded, and we must renew our commitment to this system if we are to ensure global competitiveness in the 21st century. The big question is what does it mean for American competitiveness. Our interstates and highways, for instance, provide a particular challenge for the movement of Cat products through the U.S. logistics network. Congestion and capacity constraints are a significant concern with high levels of traffic in major metropolitan areas affecting turn times and on-time performance. Similar to highway congestion, bridges present a comparable problem with inadequate capacity for large loads or traffic flows, bridges that were built early in the transportation industry present the largest problems with regard to height and age. Our Nation's rail network is increasing seen as an attractive cost-effective way to alleviate growing passenger and freight congestion on our highways. It is also a vital component of our integrated transportation system. However, current railroad infrastructure limits Cat's transportation options. Many rail lines, bridges, tunnels cannot accept the physical height and width attributes of our products, and accordingly, a great number of rail switching yards and terminals are required, leading to added delays and increased costs. Like road and rail networks, our ports are also posing significant challenges for exporters and logistics professionals. Because U.S. port capacity constraints, outdated manual processes and communications, and a lack of integration and automation, Caterpillar has come to increasingly Canadian ports for both import and export containers due to improved transit times and costs. Approximately 40 percent of Cat's imports and exports now move through Canadian ports. Finally, our aviation system, which was once the envy of the world, today is operating with substandard technologies and facing significant capacity constraints. As an example, we annually ship about 70 million pounds of mission-critical service parts globally through Chicago O'Hare. These parts are typically needed to a customer's site within 24 hours. Last year, Chicago O'Hare airport overall on-time arrival was about 75 percent, in other words, one in four flights experiences some sort of delay. This significantly impacts our ability to satisfy customers and service our products in the time customers require. In summary, our transportation system, roads, rail, water, and air is aging, inefficient, and in serious need of reinvestment. This reality leads to increased costs and less efficiency, impacting and reducing our competitiveness around the world. Our aging infrastructure and shipping inefficiencies it creates has added an estimated 3 to 4 days of transit time, costing Caterpillar millions of dollars in cash flow annually. America needs a multiyear, sustainable surface transportation reauthorization so we can begin to rebuild our infrastructure and get back on the road to global competitiveness. Mr. Chairman, Ranking Member Rahall, and the members of the committee, thanks for the opportunity to share with you the views of Caterpillar on this crucial topic. We stand ready to work with you and your colleagues in Congress to move surface transportation reauthorization forward. Thank you. Mr. Shuster. Thank you very much, Mr. Levenick. And with that, Mayor Reed, please proceed. Mr. Reed. Good morning, Chairman Shuster, Ranking Member Rahall and members of the committee. I am Kasim Reed, the mayor of the city of Atlanta. I want to tell you how grateful I am for having the opportunity to appear before you on behalf of the United States Conference of Mayors, representing nearly 1,400 cities across America with populations of 30,000 people or more. Increasingly, our success as a country will depend on how we address our transportation needs and other infrastructure needs in our metropolitan areas. We are fortunate because we are seeing genuine leadership out of this committee. As mayor, I can assure you that nothing is more important than investment in our water and our transportation systems. Now I happen to be the mayor of a city with the busiest passenger airport on the planet Earth, Hartsfield-Jackson Atlanta. Last year, we handled about 95 million passengers. That is about 10 million more than Beijing's airport. My home State of Georgia has one of the fastest growing ports in the United States of America, the port of Savannah. So the work of this committee is vital to me as a leader of the capital city of the State of the Georgia and vital to Georgia as well. As you prepare for renewal of the Federal surface transportation law, I ask that we work together to expand our investment and avoid simply flat-lining our commitments. At the Conference of Mayors, we have found that over the next 30 years your metropolitan areas will grow by 84 million people. I do want to be clear when we use the word metros, we don't simply mean cities. That is both cities and the suburbs that surround the cities. Mr. Chairman, this is more people than the current population of my home State of Georgia, your home State of Pennsylvania, Arizona, Indiana, Illinois, Michigan, North Carolina, Tennessee, and Virginia combined. So I think that we can make a strong argument that the country's future health is going to be tied to having very healthy metropolitan areas. And we should take a bipartisan approach to them because this isn't simply about cities, it is also about our suburbs as well. And I believe the work that you all are doing on the transportation bill really does represent the most thoughtful, effective method to expand well-paying jobs in our cities and our metro that we will have in some time. MAP-21 made important policy reforms by consolidating programs, improving project delivery, providing for greater accountability, and assisting project sponsors with more financing options. But we need the stability of a long-term bill. And I am hopeful that you will take that into consideration as you move this bill forward. I also want you to know that mayors across the United States of America are prepared in a truly bipartisan way to help you carry this water. To get out all over the United States of American and explain why the work you are doing is essential to the competitiveness of the greatest country on Earth. I also respectfully ask that you provide cities some flexibility and a larger role at the table. We want to be partners with our Governors. And we understand that that will mean being junior partners, but we would like to have a seat at the table and to ensure that cities have a voice as well. We believe that when cities are directly at the table along with Governors in States that we can actually leverage more resources and make the dollars that you provide States and cities go further. The Atlanta region is one of the largest and fastest growing metropolitan areas in the Nation. Our principle transit system, MARTA, is the 9th largest in the country. Your bill will help it as well. So on issue after issue, we think that we can make a case that we will be a strong partner to you. And we also think that the bill that you are moving will provide more verifiable jobs if we get a long-term bill than almost any bill that will come through Congress. So, Mr. Chairman, I want to thank you for your leadership, Ranking Member Rahall, I want to thank you for your relationship certainly on the WRRDA bill, and I look forward to seeing the same kind of energy and commitment to the surface transportation bill. I am very grateful to you. Thank you. Mr. Shuster. Thank you, Mr. Mayor. Appreciate that. I also appreciate your commitment to helping us go out across the country to educate the American people. I think that is really where it starts and then moves into the halls of Congress. So thank you for that commitment. With that, Mr. Hanley, please proceed. Mr. Hanley. Thank you, Mr. Chairman. Congressman Rahall. Appreciate the opportunity to be here to testify. I want to speak for a moment about the transit crisis in America that has gone on for the last 5 years. As a consequence of the downturn in the economy and the fact that Federal funding has been flat-lined, essentially, to our cities. With the fall in revenue coming in from tax collections in our cities and counties, we have seen a true crisis in American mobility. We have seen 90 percent of the cities in America have to raise fares and cut service. Sometimes cutting service in my hometown of New York, that had run for 100 years in that city, because of this lack of funding available to keep the systems running. I represent about 200,000 people who work in the transit industry in the U.S. and Canada, and our members are the frontline people who transport people in communities. They are the urban tax collectors who pull into bus stops every day and have to explain to people why their service is being cut at the same time that their fares are going up. This is in a period when there as been a bipartisan agreement in Washington that we can't raise taxes on millionaires, we just can't do that because that would wreck the economy. And yet as we watch inequality gnawing at American society, we ignore the fact the decision to not fund transit is one that has caused taxes to be increased again and again deliberately on the poorest Americans who need transit to get around. The other thing that is important is that Congress should understand that the notion that you can't raises tax to provide transit service, is walking in the exact opposite direction of the American people. Every time a referendum is put up around this country to raise taxes, people vote for it. Seventy percent of the referenda that had been proposed and actually voted on over the course of the last 5 years, where taxpayers have an opportunity to raise their taxes to support transit, they vote yes. These referenda are passing. That is a clear signal from the American people that they not only want more transit but they are prepared to pay for it. But more significantly the coming crisis, the one that is looming, if you think there was a problem in Fort Lee, New Jersey, because of some political shenanigans regarding traffic, wait until you see what is about to happen in America. Over the course of the next 15 years, our cities are going to grow exponentially. There has been already an increase in the population in cities; in my own city in New York, we have grown to over 8 million people again. The projection is the metropolitan area in New York will be 20, almost 21 million people in 12 years. Where will people get transit to get around? And what about the young people in America? This may come as a surprise, but young people in America not only are moving back into cities, but they are rejecting car travel. Fewer, as a percentage of the population, fewer young people today hold drivers licenses than at any time since John Kennedy was President of this country. That is a trend that we are missing if we don't start to project a plan for how we are going to get people around. So imagine all these growing urban centers with young people who have no cars who have no licenses who are flooding into transit systems. And that is the case in many of our larger cities. Even more shocking, the projection for Phoenix. If anybody believes this is simply, you know, old urban cities. Phoenix is projected in several years to have a population as large as the current population of New York City. Eight million people will live in the Phoenix metropolitan area soon. How are those people going to get around? America cannot depend upon cars. You know, people say that Americans are in love with their cars, and I think the fact is that is not true. They just hate everything else. And it is because everything else does not serve their interest. There have been studies that have shown. Matter of fact in our testimony we talk about the fact that Brookings Institute found in a typical metropolitan area, residents can only reach 30 percent of jobs via transit within 90 minutes. Now, knowing that, understanding that, how could anyone think that it is just a love affair between the American people and their cars. It is not. We also want to say that we will work with you, we want to work with Congress to make this happen. In 2012, 56 Members of Congress or the Senate campaigned with us, bipartisan, Republicans and Democrats, worked with us around the country to build rider support to voice their interest in transit. More people, by the way, board our transit systems in America in 3 days than all the people that Mayor Reed talked about going through the Atlanta airport, not to say we shouldn't fix the Atlanta airport. But the magnitude of this is huge. There are 35 million boardings a day in the United States of people riding transit. There should be many more. But these are voters, these are people who need more attention to their needs as American citizens. So we are organizing those riders. We have 91 cities across the country that have now formed rider groups. You will be hearing from them. And we would ask you to join us in the month of May when we go out and campaign throughout our cities and throughout rural areas to try and get more attention to transit, more funding for transit, and essentially a better way of life for American people. Thank you very much. Mr. Shuster. Thank you, Mr. Hanley. And knowing that the Governor has about 10 more minutes, I am going to start off by asking her a couple of questions, and I think Ranking Member Rahall, if you have one, I think we can get it in here and we can get her out on time. By the way, I don't know if it was mentioned here, you are the chairman of the National Governors Association, and we are very, very proud of you of course for being Governor but also leading that great organization. So we will make sure we get you out of here on time. In your testimony, you mentioned that Oklahoma is globally competitive because of the Nation's transportation network. Can you explain some of the facilities that you rely on that are thousands of miles away? And I have to admit to you, when Markwayne Mullin took us up to the Port of Catoosa, I did not realize it was the largest inland waterway in the country. So again we learn everything new. It is good to be up here and travel. If you could just talk about how the Nation's infrastructure affects or impacts positively or negatively Oklahoma. Governor Fallin. Absolutely, Mr. Chairman and Ranking Member Rahall, it is great to see you. It is great to be back in front of the committee again. And it is interesting to see the other side of the story once I have been on the Transportation Committee and now as a Governor actually working with Federal regulatory entities and Federal funds and now on the State level. And trying to decide how you parcel and part those Federal funds, versus the State funds, and how you combine the two and work together. You know, Mr. Chairman, you mentioned about how important it is that we have reauthorization of the transportation bill. But one of the things I want to emphasize, that I have seen on the State level is, that we need certainty. We need certainty in our States. When there are short-term extensions, when there are continuing resolutions, when there is no permanency, no long-term vision for funding for our Nation's infrastructure, whatever type of infrastructure that it might be. Whether it is the highways or bridges, our ports, our transit, our airports, addressing our congestion problems, that affects our States and it affects the certainty within our marketplace. It affects our employers, it affects their ability to hire people, to gear up for say, construction projects like our I-40 cross-town interstate that you came to see in our State. And so as you are working through the committee on the MAP- 21 reauthorization, we just ask that you look at, first of all a long-term solution, giving us some certainty in our States, certainly addressing all of the concerns that we have heard from our various people testifying today, and that you allow us the flexibility, innovation. There is some great innovation going on among the States, some great examples of ways that we can stretch our dollars. But also understand that States can't pick up the load by ourselves. That we have to have a national vision for national transportation infrastructure system. Mr. Shuster. Thank you very much, Governor. Mr. Levenick, can you talk a little bit of some of the specific experiences you have moving your goods out of the country on the system? What are the bottlenecks? I know you and I had a discussion before, I kept using Caterpillar as an example of shipping out of American ports. And then you told me you ship a lot of it out of Canadian ports because they are better equipped to handle, they are easier, they are less expensive. So could you talk about some of the issues that you face, whether it is roads, rail? Mr. Levenick. Thank you. I think the real issue, and it talks a little about the what the Governor just addressed is that for us, it is not any one thing. We look at the transportation as a network. And so if you look at highways that have bottlenecks, if you look at old bridges, if you look at old rail that can't handle the size, the ports that aren't deep enough. Ironically, Caterpillar is providing the equipment that is widening the Panama Canal. It is sort of an ironic twist of fate that once that is widened, some of the ships that will be able to pass through that canal may not be able to dock at U.S. ports and benefit exports from the United States. As we look at ports, there is some pretty good detail in the testimony, but 40 percent of our exports and imports come through Canadian ports today. Port of Montreal is about 3 days faster than Norfolk, Virginia, and Prince Rupert out of British Columbia is about 2 days faster than Long Beach for us. And that time, of course, is money and it is costs. And as we compete in the global economy, that matters. And so it is not just one thing. If the network doesn't work together as an integrated whole, it is a problem. And that is what you see, that is what we deal with every day. And we are just a proxy for any American manufacturer. So again. I come back to our plea is that and again echo what the Governor said, a multiyear, sustainable plan that gives certainty to people making investments and at the same time drives a line in an integration. That is a role the Federal Government can play to really help this thing work as an efficient network. That will readily get us back to competitive advantage. Mr. Shuster. Thank you very much. I would now yield to the ranking member for questioning, keeping in mind Governor Fallin has 5 minutes. Mr. Rahall. Thank you, Mr. Chairman. First I ask unanimous consent my opening comments be made part of the record. And I apologize for being tardy. My comments made part of the record, my opening comments. Mr. Shuster. Without objection, so ordered. Mr. Rahall. Governor Fallin, welcome back. Good to see you once again. You served not only on this committee, but Resources Committee as well, which I chaired at one time. And I know you have been through some difficult times since then as Governor because of natural disasters and you have done a tremendous job of leading your State through those disasters. And good to see you here today. You mentioned in your testimony, you kind of warned Members not to misinterpret what some of the States are doing on their own, which are very commendable actions, as far as raising revenue, they are not just waiting for us to act here in Washington, but they are proceeding on their own. But you said don't misinterpret that as a signal to devolve everything back to the States and renege on our Federal role. Could you comment just briefly further on what that might mean? I know we heard from Tom Donohue, the Chamber of Commerce back early in this hearing process, we heard from the Laborers' International Union president, from Governor Rendell, that there has to be a Federal role in transportation. We cannot just devolve, as some Members of this body have preached, back to the States. What are some other negative repercussions if that were to happen? Governor Fallin. Ranking Member Rahall, it is a great question. And it is a very important question because I do think there has to be a partnership between the Federal Government, States, and localities within our individual States to work together. We certainly do need to have a national vision for our transportation infrastructure because we are 50 States and the territories that have to work together to develop a seamless transportation system in all the different realms of transportation that we have in our Nation. But the States can't pick up all the costs. And certainly as you have gone through sequester and Government shutdowns and other things that you have had here in Congress, States have had to make some tough choices when it came to spending and being able to meet some of our funding needs. And we have done some innovative things. So I guess what I am saying is that we do need some flexibility. We do have some great ideas within our States that I think could be helpful and sharing those best practices with Congress, which many times in front of this committee we have had various people testify, like my Secretary of Transportation, Gary Ridley, who has been before this committee many times when I was here. But to understand that we do need to have a national system that assures that we have safety within our various systems, whether it is rail, whether it is ports, whether it is our airports or commercial air, our roads and bridges throughout our States, whatever form it might be, transit. But we also need to have some flexibility within our States because each State is different, each State has different needs, each State has different funding sources, each State has different crises that we have to deal with. Each State has different needs. I was listening to the gentleman talking about transit and the need for that. And certainly we understand that. But in Oklahoma we are a very rural State, we have a lot of roads within Oklahoma. And so we don't have big transit systems because Oklahoma City isn't as big as Atlanta. So each State is different, each State has different needs. And we are just asking that you consider that as you are working through the various rules and regulations in the MAP-21 reauthorization. Mr. Rahall. Thank you very much, Governor. Let me turn quickly to Mr. Hanley. And certainly want to thank you for all that you do and what you do for the health and safety of our transit workers, which is paramount on all our agendas. What impact would a slash in Federal transit budget have on the workers that you represent? And on the riders? Mr. Hanley. Well, again, what we have seen over the course of the last several years simply with no increases in Federal funding, and also, by the way, a bias in Congress against operating aid for transit. In times of urgent economic need, we believe that the Congress should step up and fund some operating aid to keep transit systems running when the economy is not only in collapse nationally but at the local level. But we have seen over the course of the last 5 or 6 years more layoffs of transit workers than we had seen since World War II. Chicago, for example, a city that depends on transit, cut 12 percent of its transit in 1 day in 2009 because of the economic downturn. We are a better country than that. You know, we can't abandon riders in the streets. And at a time when the economy really needs more people at work, it was kind of silly not to keep transit workers working as well. So if there are any cuts in transit obviously those same two groups are going to feel it the most, the people who operate the systems, the drivers and the mechanics and the people who sell tokens and other fare media, and also the people who ride and depend upon transit every day. Mr. Rahall. Thank you. Thank you, Mr. Chairman. Mr. Shuster. With that, it is 10:45. Governor Fallin, we will let you excuse yourself. And again we are really proud of you being the Governor of Oklahoma and of course your new leadership position at the National Governors Association. So thanks for taking the time to be here with us today and I look forward to working with you as we move forward on the next surface transportation bill this year. Thank you. And with that, I yield to Mr. Petri for questions. Mr. Petri. Thank you, Mr. Chairman. Governor Fallin and some of the other panel members referred to this, but I wonder if you could expand on it a little bit. For some years now, Congress has been drifting away from what we call regular order, reauthorization of 5- and 6-year bills in major sectors of our economy. We had a couple of dozen short-term aviation reauthorizations before finally adopting a multiyear bill. Currently in the highway area, we are on a relatively short- term authorization. In any event, what difference does it make if we just kick the can down the road and don't do our job, we still seem to have some sort of a program in place. Why is a 5- or 6-year framework important for our country? What difference does it make? Would each of you be willing to address that a little bit? Mr. Reed. The instability stifles investment. So when we don't have a 6-year plan, and we are planning a new runway at Hartsfield-Jackson, or a new terminal, we are taking on projects that are multiyear projects. And it helps us when we know what is going to be available. Good, bad, or indifferent. I could make the same argument regarding the port in Savannah, where we are making another long-term investment and we are going to have to expand the roadways and arterials to deepen the Port of Savannah. Caterpillar just located a site in Georgia, and one of the reasons that they did was the port. So the bottom line is, is the stability that a 6-year bill or a longer term bill gives us is it removes instability and allows us to go and invest knowing what the situation is. And that is healthy because it stimulates our ability to make investments that employ people. So the biggest economic generator in the State of Georgia is Hartsfield-Jackson Airport. It employs about 56,000 people directly. And the decisions you make here give me a sense of what we are going to need to do on our side of the house in terms of what our responsibilities and obligations are. So the difference between a 2-year bill and a 6-year bill represents the difference of tens of millions of dollars being invested locally, at the municipal level and at the State level. Mr. Levenick. I take the same angle that the mayor did and just say that the same applies to the contractors, the architects, the designers that are building this infrastructure. They won't make investments in people, products, material, without a long-term view as to what the future holds. It is, you know, basically pretty simple. It is a result. You see people relying on what they have got, on rental of equipment, not making the hiring decisions that you would normally see if they had a long-term plan with certainty. I would also say that, you know, MAP-21, while it is only a 2-year extension, many of the provisions or regulatory provisions that went into that bill I think will be very effective going forward if applied to a longer term legislation with certainty. The efficiencies, the accountability, the flexibility that is built into that I think are real good reforms that will actually make things much more efficient when applied to a long-term commitment on funding. Mr. Hanley. I agree as well. Significantly, in our major cities, real estate development is always built around transit. And people often forget that. But the value of having a long- term plan is that first it enables people who start to imagine better things for their cities to put them in place, and, secondly, it certainly attracts investment from people who are interested in developing the real estate and moving to different parts of town. It is vital that we have a long-term plan for--and particularly when you think about what is going to happen to our cities over the course of the next 15 years, as the population grows throughout urban America, we are going to need a transportation infrastructure in every one of our cities to make of work. And you can't have that if you do this one year at a time. You needto have a long-term plan. Mr. Petri. Thank you. Just real quickly. If we are kind of not making real progress, if we are you know, a fight between the House and Senate, is it important to just do something for 3 months or to have crisis and deal with it and funding a major 6-year bill because of a benefit of doing that? In other words, is it better to just keep things calm and go along even if there's inadequate framework or is it better to face up to our problems and put a major 6-year bill in place. Mr. Levenick. Well, I guess from my perspective, the reason we are here is to make a strong case that this is about the economic vitality of the country. We are losing ground against the global economy. So I guess from Caterpillar's perspective it would be worth a very good debate and dialogue. I will let you guys work the details, but what we need is a multiyear, multimode and transportation system with certainty that really addresses the issues that we are all describing here. Mr. Reed. I would certainly err on the side of short-term pain for a long-term promise and stability. Mr. Hanley. And I don't think we need to have a fight. I think we all ought to agree. No committee in Congress has ever been more bipartisan than this committee, historically, and I think that is a proud history and you should all embrace it. But look at what is happening around the world. My God, the amount of money that China is investing in its transportation, not just transporting goods, but also transporting people. America cannot afford to let itself become a third world country, and these are the kinds of things that we need to do to step up and make it happen. Mr. Shuster. Thank the gentleman. Ms. Norton is recognized for 5 minutes. Ms. Norton. Thank you very much, Mr. Chairman. I was really struck by how much the witnesses had in common and over and over again there was talk about stability and long-term funding. Indeed, Mayor Reed, I don't know how with 2-year funding that you could do much more than patch a road. Because it was a 2-year patch funding that essentially was out of a trust fund that was hardly there. It needed general revenue---- Mr. Reed. Sure. Ms. Norton [continuing]. Simply to get over its own cliff. But I think we ought to drill down and stop simply talking about cliffs and disaster and let's say what we really mean. By 2015, this trust fund, which already needed revenue in order to fund it this year, will go from $53 billion to zero. What I think we are most in need of are ideas about how to fund a 21st-century surface transportation system with transit, roads, with everything that we need in it. The user fund was based on the old car economy. So even if the user fund was as robust as it could be, it has outlived its usefulness. People like me drive a hybrid. In other words, we have had success with our energy policy, so there is less funding for the trust fund. As successful as that was during the period of Eisenhower, we need another way to fund roads. Have you thought about what kinds of things the Congress should do? You understand that funding has to begin with funding the whole country, and has to begin here. Should we depend on users, the basis for the trust fund? Should we have another framework for funding our vital transportation? Have you given any thought to that? Do you believe that taxpayers would fully fund a new way to do more than patch a road for every couple years or every year? Mr. Reed. Thank you for the question, Congresswoman, and thank you for your leadership of the District of Columbia for so many years. I have given it thought, and I think that what we need to do is to have a conversation in this committee where we put all options on the table. And then people who are the beneficiaries of your legislation need to step up once you all decide a direction and get out here and help you sell it and win it and not have you up here alone on a cliff. Now, I know that that is going to mean tough negotiations. But the reason that I wanted to come here today is because I saw the substantial work that was done on WRRDA, which was some of the most serious legislation that has come out of Washington in some time. And so it suggests that under Chairman Shuster's leadership and under Ranking Member Rahall's leadership, that you can get a serious bill done. So I would advocate putting all of the options on the table. In communities like mine, we certainly are willing to take on our own share to fund what we want. And we typically would do it through the form of referenda. Because I believe that, you know, when you want more money for public projects, it is OK to go ask for folks. But we have got to be given flexibility. And finally, Congresswoman, I need you all's help because mayors have to be at the table. When you don't involve your mayors, you are losing Federal leverage and Federal money. Your Federal dollars do not go as far. In one project in the city of Atlanta, we invested $365 million in a project called the Atlanta BeltLine. It has leveraged $1 billion in private investment, and I can get projects done faster at the local level than you can at the State and Federal level. So in summation, I would ask that you put all of the options on the table, I would ask that you get a 6-year bill because a 2-year bill is not very helpful to us, and I would ask that you give serious thought to flexibility and adding mayors to the mix because we can get projects out and done faster than you can at the Federal level and State level. And I think that this committee has the ability to play the most powerful role, or one of the three most powerful roles in expanding well-paying jobs at a time when we need well-paying jobs and protecting our competitiveness. I think we can out- compete anybody, but right now if we don't start long-term planning, we are just giving it away. I think we are just giving our leadership position away. Mr. Hanley. When I was in school, we had a class called Citizenship. And I assume that if they teach that class today, it's called Taxpayership. Because suddenly somewhere along the line we switched from being citizens that cared about each other and cared about our community and we became taxpayers who wanted all that money kept to ourselves. I think Congress needs to be a little more bold on this. If we are going to have a vision for America that involves a better economy, then we have to find a way to pay for it. You just heard from a corporate titan, Caterpillar, that we need better highways, that Caterpillar needs better highways. Well, the folks that are making the money at the top ought to figure out a way to pay for this. You know, one of the proposals that is in Congress right now is to tax stock transactions. Right now, by the way, we can all go out and buy, let's say, a broom this afternoon and pay a tax on it because there is a tax on the broom. But if you buy the company that made the broom, there is no tax. So that seems kind of silly to me. When the company who is getting the profits from the roads we build, the transit we provide for people to come to work. And again I know this might rub against the grain for some folks who have adopted the idea that we are no longer citizens but taxpayers. And what I am saying to you is we ought to find a way to do this and remember that at the end of the day, if we are not citizens, we have no country. Mr. Shuster. Thank you, gentleman. With that, Mr. Duncan is recognized for 5 minutes. Mr. Duncan. Thank you very much, Mr. Chairman. A few years ago, when I chaired the Highways and Transit Subcommittee, the Federal Highway people had two studies saying that the average Federal highway projects take 13 years. One study said 13 years, one study said 15 years from conception to completion. And Mayor Reed, when I chaired the Aviation Subcommittee, the Atlanta airport people, this is many years ago, they came to us and told us that their newest runway, which is now several years old, took 14 years from conception to completion. It took only 99 construction days, and they were so relieved to get all the final approvals, they did that in 33 24-hour days. What I am getting at is we have tried in some of these bills to do what is referred to as environmental streamlining. Most of these delays have been on the environmental rules and regulations and red tape. I would like to ask all the witnesses, do you see that those efforts have done much good? Are these projects still taking too long? And I noticed Mayor Reed was talking about that he can do things much faster at the local level. Most of the developed nations are doing these projects in half time that we are. Especially in China and Japan, they are doing probably in a third of the time. Mr. Reed. You are right. Mr. Duncan. Are these project still taking too long? Mr. Reed. The answer, Congressman, is that we are certainly able to deliver projects faster. So this committee helped me recently build a streetcar expansion in the city of Atlanta. And we are going to bring it in, on budget and relatively close to schedule, and we are going to regenerated at several hundreds of jobs, and that was the demand. So there is no question that we can do things faster. If you look at the time that it took for us to complete and construct our fifth runway, and our airport handles about 10 percent of domestic U.S. travel. Because we are the home of Delta Airlines. The things that you all did to help us streamline our processes helped a great deal. And so the straight answer to your question is yes. And then, you know, the second request would be just to continue to help us move faster and then to push real hard to get us a 6- year bill because we need to make multiple decisions at the same time. So the capital project from our airport is a $6 billion capital project. And in order to spend those kind of dollars, I need to know where we are going to be with our Federal partners before I make critical decisions to put thousands of people to work. Mr. Duncan. All right, thank you. Mr. Levenick, do you still see delays; is there more that we can do through this committee? Mr. Levenick. Well, Congressman, there is probably always more that we can do. But I think, at least from Caterpillar's point of view, and we are a user of the output of these projects, not so much the builders themselves, but the reforms that were in MAP-21 I think were roundly viewed as very positive. And I think as we move towards a 6-year bill with certainty, I think those reforms will have a very positive impact and probably allow us to improve efficiency much greater than what we have seen in the past. It is always a step in the right direction. Mr. Duncan. We have got to have cooperation at the State and local levels, though, as well to really do what we need to do. Mr. Hanley. Mr. Hanley. We have not experienced that problem in transit. If anything, transit projects have been more streamlined over the course of the last 10 years than they had been prior to that. And certainly we think more attention should be paid to the environment, not less. Mr. Duncan. All right. Thank you very much. Mr. Shuster. Ms. Johnson is recognized for 5 minutes. Ms. Johnson. Thank you very much, Mr. Chairman, and our ranking member and for calling this meeting, and thanks to the witnesses for your testimony. The surface transportation legislation is one of the signature pieces of legislation for this esteemed committee, and I look forward to cultivating the next piece of legislation with my colleagues for the coming months. I have been a strong supporter of activity yeah and had noticed that Governor Fallin had mentioned TIFIA as a benefit for her State and mentioned also the possibility of any other types of creative financing options. And I would like to ask each one of you to tell me why you--whether or not you support TIFIA or any other creative financing that we might consider. Mr. Levenick. Well, let me start, Madam Congressman. Absolutely. I think, as the Governor said, and I will just echo again her comments, I think we always want to devolve to the-- to the quick answer, what is the funding solution to make this all better, and the answer probably is, and you will know better than I, but there probably isn't one. We are probably going to need all of them. TIFIA is attractive; the infrastructure bank is attractive. Congressman Delaney's got a proposal on repatriating foreign deferred taxes that might have some legs. Certainly user fees is another one. We are probably going to need public-private partnerships. I think it is going to have to be comprehensive to really get at what we want. So, at least from Caterpillar's point of view, we are open to any and all. The ultimate goal for us is an integrated network with long-term certainty in a multimodal transportation network that improves our competitive advantage globally. Ms. Johnson. Thank you. Mr. Reed. Congresswoman, I believe that TIFIA is highly effective. In the State of Georgia, we recently were awarded TIFIA funding. It was essential to a major transportation initiative in one of the most congested parts of the metropolitan region. I can't say enough about that process. I think it also represents an extension of Federal resources, because unlike the grant approach, it does allow States that have strong credit and strong financial resources to be allowed to pay the Federal Government back for your investment, but I think that TIFIA really highlights the need for providing alternatives, and so to the extent that you can push out a menu of alternatives that allow us to do more and leverage more, I hope that as you consider this extension, that alternatives are constantly put on the table. My city happens to be a huge beneficiary of the TIGER initiative. We have won two TIGER grants. One leveraged double the Federal investment. We won a $47 million investment that leveraged a $100 million project, and the Atlanta BeltLine recently won an $18 million investment that is leveraging $43 million of local investment. So I think that when you look at the jobs that are verifiably created and our ability to pay our bills, that TIFIA is an extremely effective project, but at the end of the day, we need alternatives with verifiable track records. Ms. Johnson. Thank you. Mr. Hanley. And I think from the workers' perspective, we are interested in all kinds of creative ways to finance these systems, but one word of caution that I want you to hear, and that is that the public-private partnership craze that has occurred has resulted in a real attack on American workers. And, again, it is fashionable to attack American workers, but then let's all talk about we should have equality. I mean, you can't have both. You can't attack American workers and then gripe about inequality, because that is what created it. And what has happened in the public-private partnership area in transit is that companies, global companies based in England and France--one is a really great story. Veolia is a French transit company, a water company also. It is owned by the French social security system. And Veolia comes here and takes over transit systems, and in every single case, they eliminate the American workers' pension, every single case. It is their corporate policy that American workers cannot have a pension if they work for Veolia, and yet it is owned by the French social security system. There is something wrong about that, and there is something wrong about us supporting public- private partnerships that result in degrading American jobs, particularly if we are then going to get up together and say, you know, we have got to ring our hands about this inequality in America. We are creating it. Ms. Johnson. Thank you. My time has expired. Mr. Shuster. Time has expired. And with that, Mr. Hanna is recognized for 5 minutes. Mr. Hanna. Mr. Hanley, first of all, I am an operating engineer, 35 years. I spent a lifetime in---- Mr. Hanley. Good morning, brother. Mr. Hanna [continuing]. Cat equipment. I am going to ask you something. You know, I agree with you. States are having-- they are having good outcomes in asking for additional money for transit. You are absolutely right. The age of--between 18 and 34, people are driving increasingly less. We see for the first time in the last 10 years numbers miles per person in that age group are declining. We know that that is why the Highway Trust Fund is in trouble, the diesel tax and the excise tax and the gasoline tax, which I guess on gas, you--transit gets about 2.8 percent. I also know that people who use mass transit are not all poor. I have been in New York City. I am a New Yorker. You know, a lot of wealthy people that ride the transit. It is a great way to get around and increasingly, as you said, 35 million people a year--a day, load themselves, and your union does a great job of getting people where they want to go safely. Why isn't that--why doesn't that lead you to the conclusion that people who take mass transit should not pay something to the Federal Government toward that, because basically now those people who you say are riding--are spending money on gas and diesel, they are subsidizing, for lack of a better word, they are subsidizing mass transit, and there is no--there is no quid pro quo in reverse. Yet you are here asking for additional money, which I fully understand, but why shouldn't this--part of the problem and the difficulty on this committee is exactly as you identified, we are having--we need to have a conversation about how to pay this. Why shouldn't ridership be part of that when not everybody is disadvantaged who rides mass transit all across this country? And increasingly, it is just the opposite. Mr. Hanley. Where is Warren Buffett when you need him? It is true that in major cities like Washington and New York and Chicago, we have a much more mixed clientele with respect to who rides transit, and certainly there are very wealthy people who ride transit every day. There are also very poor people who have no choice but to ride transit. I recently had---- Mr. Hanna. But poor people own cars, too. Mr. Hanley. Let me tell you a story. I was recently involved in a nonpartisan voter turnout operation in Cleveland, and I was on a van who picked up a voter who had to go a mile and a half from her house uphill on a terrible day to vote. And when she got on, she said, Thank you. And I said, no, no. Come on. We are happy to take you up. No, no. Thank you. She says, you know, I own a car. But she--yeah, she said, but I can't afford the gas. Now, this was in a housing project, by the way. Mr. Hanna. But isn't that a case for you to say to her, part of your gas tax is going toward this? Mr. Hanley. Oh, yeah, but---- Mr. Hanna. You are riding mass transit, therefore, you are not paying for it. Mr. Hanley. Well---- Mr. Hanna. I mean, how do you justify that transfer of taxes? I am just--it is just a simple question. I don't need an anecdote---- Mr. Hanley. OK. Mr. Hanna. What I need to know is why specifically do you think people who ride mass transit have no obligation to pay what other people in this country pay through their gas tax, diesel and excise tax? Mr. Hanley. No, no. Mr. Hanna. I am not advocating---- Mr. Hanley. They do pay. They do pay. They pay huge fares. They pay income taxes. They pay real estate taxes that all fund transit. It is not as if transit riders are getting a free ride---- Mr. Hanna. But the Federal Government---- Mr. Hanley [continuing]. But more specifically---- Mr. Hanna [continuing]. Subsidizes them, but we do not--we do--the people who use the rest of the transportation system have historically paid directly unsubsidized. Mr. Hanley. But that is a myth. That is a myth. The fact is that the subsidy per rider is much less than the subsidy per car owner in America if you want to look at all the different subsidies that go into roads, highways, bridges, et cetera. And that is not to take away from the importance of them. Mr. Hanna. But there is no payment on the part of people who use mass transit back to the Federal Government---- Mr. Hanley. That---- Mr. Hanna [continuing]. Yet there is with gas and diesel and excise. Mr. Hanley. But they pay Federal taxes. That is what they do. They pay income taxes. Mr. Hanna. We all pay Federal taxes. Mr. Hanley. Pardon me? Mr. Hanna. We all pay Federal taxes if we are in a bracket that allows us to do that. Mr. Hanley. OK. But---- Mr. Hanna. You see, you really don't have an answer for that question. Mr. Hanley. Well, it is--I don't have a 30-second answer. There is a long, complicated answer that absolutely justifies huge increases in Federal investment in transit. We would be happy to have that discussion you in writing or personally. Mr. Hanna. My time is expired. Thank you. Mr. Shuster. Thank the gentleman. And Mr. Lipinski is recognized for 5 minutes. Mr. Lipinski. Thank you, Mr. Chairman. I want to go back a few minutes to share, I think, Mr. Hanley's exasperation here when one thing he says, look at what the--look at what the rest of the world is doing, look what we are sitting here talking about. Unfortunately, since SAFETEA-LU expired September 30th of 2009, we have struggled to do a long- term robust spending bill for our transportation infrastructure, which we all know is desperately needed. We all know that in this room. There has been a lack of we can--you know, we can argue here and there about who is more to blame, Republicans or Democrats. There is plenty of blame to go around and plenty of lack of leadership that I have seen on this issue. It is time that we finally do something here. Now, MAP-21 was a--was largely a Band-Aid, although it did have, as Mr. Levenick had pointed out, had--he pointed out some of the good provisions in MAP-21, and then there were others in there, so that was good, but it was still a Band-Aid, and we face a big cliff at the end of MAP-21 with funding. We need to get this done. We need to be serious about it. We need to see real leadership on this. Now, I certainly thank and congratulate Chairman Shuster for his leadership that he has taken as chairman of this committee and moving this issue, keeping this issue on the front burner and showing that this is an issue that affects all Americans and it impacts business. And I think we need to do more--a better job of getting that out there, the impact on business, the impact on our economy. So I thank Chairman Shuster for what he is doing, but we really need to finally move forward, decide how are we going to fund this. We have got to make the tough decisions to do it. Now, Mr. Levenick, everyone knows that Caterpillar-- obviously, you know, Caterpillar will--will benefit from, if we have a transportation bill, from what is spent on building the new roads, the additional infrastructure, but I think the point that I want to most bring out, and you certainly touched on, was the impact on the economy as a whole, everyone in the economy. We depend on an efficient transportation system. So I just want you to--give you an opportunity, Mr. Levenick, to-- you know, to ask you, you know, what is at risk for our economy, specifically for Caterpillar, if we continue to underinvest in our system as we continue to do? Mr. Levenick. Well, thanks, Congressman, for the question. I think--simply put, I think we continue to lose competitiveness in the global economy. And I cited a number of examples about, you know, the longer delays for U.S. ports and delays in shipping products across State boundaries and so forth and so on, and I think those all build up into inefficiency that our customers have to pay for and that other countries in the world---- Mr. Lipinski. And what does that mean for job creation? Mr. Levenick. Well, I think, you know, the more effective we are at moving goods and being an effective and competitive exporter, the better we are going to do as a company; that is a proxy for U.S. manufacturers who export, import. And, you know, you are going to be a much more effective company, you are going to grow, create jobs. I mean, if you look at--many of you have traveled to China and you have probably witnessed what is gone on there. China is an interesting example. They have some advantages, clearly. You know, they started essentially with a clean sheet of paper and so they are able to build an infrastructure network much like what we are describing, an integrated infrastructure network, which is, frankly, becoming the standard in the world. They spend 9 percent of GDP. They are the second-largest economy on earth; they spend 9 percent of GDP on infrastructure. The United States, 1.4 percent; Canada, 4 percent. Europe, for example, along the lines of what I am describing, they have created the TEN-T program, this Trans-European Transportation Network, solely focused on creating an integrated network to make their economy much more efficient in the global marketplace. That is the kind of leadership we need here. Mr. Lipinski. Thank you. And I--efficiency means-- efficiency for American businesses mean more American jobs. Other countries are stepping out in front of us, becoming more efficient; that means more jobs over there than here. In the brief time I have left, Mr. Hanley, you know that I formed a congressional caucus on public transportation earlier this year. I thank you for what you have done at the local level. And we need to continue to do more so people understand the importance of public transportation, not just to those who take that transportation, but to those who are on the roads who don't have to deal, then, with all the others who are on public transportation being on the roads. But my time is up, so, unfortunately, I won't have an opportunity to have you expand on that. So I yield back. Thank you. Mr. Shuster. I thank the gentleman. And with that, Mr. Gibbs is recognized for 5 minutes. Mr. Gibbs. Thank you, Mr. Chairman. And thank you for coming before us today, and I am--there are lots of us here who feel a long-term highway surface transportation bill is a very good thing, and it provides certainty, like you said. I want to talk a little bit about--to Mr. Levenick from Caterpillar. In your testimony, you talk about the amount of exports and imports that Caterpillar does through the foreign ports in Canada in particular. In your testimony, you talk about outdated manual processes, communications, lack of integration and automation. Well, first, before I get to that, I want to say, in our omnibus bill, the appropriations bill we are doing tomorrow, we are getting the Harbor Maintenance Trust Fund appropriation, over a billion dollars, so we are on the right track there. And as the chairman of the subcommittee that worked on WRRDA, that is something we have been fighting to do. I always like to say, doesn't anybody understand the word to mean, what a trust fund is? But I want to talk a little bit, because I have been to some of these ports and, you know, we talk about the depth of the ports and the need for dredging, but you talk also in your testimony about the lack of integration, automation and the communications process. Can you just kind of expound a little bit on what is going on in those other ports? And then I guess the second part of that, too, is we get the dredging done, which we have been fighting hard to get done, do we also have just a plain, like, at L.A., Long Beach and some other ports, a capacity problem is an issue? Is there some other ports could pick up some of that? Is that part of the problem, too, or is it some of these other problems you mentioned? Mr. Levenick. Yeah, I think it is a little of both. And don't take from my comments about the ports it is simply the Port of Norfolk can't unload ships fast enough. You know, there are a variety of issues around all of these, but I think the issue is, is that our modes aren't as alined as they are in other countries. So if you have a tremendous world-class port and the highway infrastructure surrounding it, which provides access to the Nation's network, isn't up to standard, you haven't gained anything. Mr. Gibbs. OK. Mr. Levenick. This is the same argument with the States doing their own infrastructure development. While it is admirable that they are taking the initiative to do this, if we wind up with a patchwork of 50 different States, you haven't created a national network that is very efficient. Other countries are doing that much better. I mentioned the TEN-T issue in Europe. China certainly has done that with a clean sheet of paper; Japan is very good at it, and even Canada has done a good job of it. So it is a series of things regarding alignment of these modes, the information systems necessary to communicate effectively between the modes, and a variety of things like that that really make it not optimum, and we all pay a price for that; we don't see it, but we do, and we are losing global competitiveness as a result. Mr. Gibbs. OK. And I just want to turn to Mr. Reed with your Savannah port and Atlanta being, I don't know how many miles it is in from the port, but it is, you now, definitely landlocked, and you talked about what you are trying do to improve that, what you just said about the, you know, the intermodal. Can you comment on that, what you are seeing in regards to Savannah and Atlanta? Mr. Reed. Yes, Congressman. Savannah is about a 2\1/2\-hour drive from Atlanta, but Atlanta has the highway network that then gets the goods throughout the Southeast, so it is that kind of partnership. About 100,000 jobs in the metropolitan region are supported by the Port of Savannah. It is the fastest growing port on the eastern seaboard, but it needs to be deepened immediately to 47 feet. This committee has been helpful with that. But I recently traveled to Panama with Vice President Biden, and President Martinelli talked about global exports and said that every port that is going to be a player in the global economy needs to be at 50 feet, so that is where the United States needs to be, and that exports around the world over a 30-year period of time, as you know well, will increase by about 80 percent, and then when you add to that the issue of the size of the ships. So we did all of the work that Caterpillar's been a part of to get the Panama Canal so that it could handle a ship with 12,000 or 13,000 BTUs, and now you have ships that are being manufactured that are going to handle 18,000 BTUs, and so we have to begin. And when we have a 6-year runway, I think we have a better opportunity to take all of this in and get ready for it. Mr. Gibbs. I am just about out of time, but I just want to make the comment, I think you are making the comment how important it is to connect these systems. I always think, you know, all of our transportation systems, you have to look at the whole system and not just one part. And I would also--I am out of time, but I would also just say we have got a good bill out of WRRDA out of the House, and it is not completely there, but we are getting there, but just tell all your members, all your people you work with just keep the pressure on both the House and the Senate to get it done. Thanks. Mr. Shuster. Mr. Gibbs, we are working on it. And with that, Mr. Carson's recognized for 5 minutes. Mr. Carson. Thank you, Mr. Chairman. I believe that States like Indiana have demonstrated that there is a role for the private sector in building and expanding our transportation infrastructure. Going forward, what do you all see as effective plans for, or paths for that matter, for the private sector to help build out transportation systems? What should we consider? Is there a menu of alternatives that you may have in mind? Mr. Reed. Well, what we look to do is to have local leverage that then is paired with Federal commitments. So, in the two most recent examples we have had, one was our TIGER bill. We have about 42 million guests. We leveraged double what the Federal Government put in, so we think that that represents a good investment for you all. We are also going to be open to public-private partnerships, but we will allow our private sector--our public sector employees to compete. But in the United States, public-private partnerships are going to have to be a part of the long-term solution, because you have so much wealth that is prepared to invest in infrastructure around the world---- Mr. Carson. Absolutely. Mr. Reed [continuing]. But what we are not going to do is to let a three-piece solution crowd out access and opportunities to traditional labor, so everybody is going to be able to come to the table and show that you can compete. The next step for us in Atlanta is going to be a light rail system for the Atlanta BeltLine, which people in Atlanta are wildly supportive of. So one of the opportunities to fund that would be a referenda, because I don't believe in simply imposing taxes on folks based upon my own notions of what I think should be done. But the bottom line is alternatives, alternatives, alternatives that have been vetted and proved effective, and then let the local electeds make the decision and suffer the consequences, good or bad. Mr. Carson. Right. That is good. Mr. Hanley. Did you want a reaction from me? Mr. Carson. Yes. Mr. Hanley. Yeah. My union has had the great advantage of 122 years of vetting private companies, and we--and most of the contracts we have at this point are with private companies, not with public agencies. And we can tell you unequivocally that private companies collapsed throughout the United States; it is what led to the original bill in 1964 50 years ago to bring mass transit back. And so long as we seek to improve transit by injecting the importance of a profit motive for private companies, we will fail. Government can effectively run transit. Government does effectively run transit. And frankly, trying to reinvent, you know, the 1960s, when transit collapsed in America, we think is a critical mistake. Mr. Carson. OK. Mr. Levenick. You know, first of all, I would agree. I think Indiana has done some creative things, and I think they can be kind of a poster child for some of the options which might be available, but in the end, from my point of view and Caterpillar's point of view, whatever gets us to a multiyear, sustainable integrated network is what we need. And I think you are probably likely going to need all of the above. All the private partnerships have their role, referendums have their role, user fees, user taxes, I think all of this is going to form, you know, the potential here to find the funding we need to get this done, but the important thing here is to understand that this really is about the economic future of the United States. I mean, this is not just some short-term thing. This really is about how we compete in the global economy and the standard of living that we are striving to achieve. And, you know, hopefully, the comments that we have made help put that in perspective for you. Mr. Carson. OK. Thank you. Thank you, Mr. Chairman. I yield back. Mr. Shuster. Thank you. With that, Mr. Webster is recognized for 5 minutes. Mr. Webster. Thank you, Mr. Chairman, and thank you for doing this, getting started early on the reauthorization. I think this probably could be one of the most important-- probably the most important bill that passes this last half of the--of our--of this 2-year Congress. I have a question for the mayor. I am intrigued by a mega city inside somewhat of a rural State. Mr. Reed. Yes. Mr. Webster. And I am wondering, how do you bring about influence in that there is one step between you and the Federal Government through the DOT and through the MPO process? How do you work that out? Mr. Reed. I work it out by partnering with my Republican Governor, who is a--Republican, but we understand that there are some things that we have got to work together on, and we both occasionally get in trouble. I supported his application for a TIFIA loan for $270 million and caught some flack from folks in my party for supporting a Republican. He supported me on a transportation referenda, and he caught some flack, but I tell you what, unemployment since we both took office is down from 10.2 to 7.0, and we will put the jobs that we have created up against all of the people who criticized him for working with me and for me to work with him. So, you know, I understand that he is Batman, and I am Robin, but I do believe that mayors have to have a voice. I don't have it confused. That is why I wanted to share that with you, because the bottom line is, is that, you know, folks in cities will help to fund things that folks in rural areas might not want to be a part of, but at least give folks that flexibility, because it does allow the Federal dollar to come forward. And, you know, I think that that has been the key in Georgia for us. We work together on the things that we agree on, and we don't on the things that we don't agree on, and so that is why I think that we have had the kind of wins, speaking of Caterpillar, the deepening of the Port of Savannah and others that we have been having. So that is what I think. And I am sure I will get in trouble for saying that during my testimony. Mr. Webster. I hope you don't. I would ask you this, then, we just finished a freight panel which did a study around the country about how we might be able to enhance that through--and a lot of the discussion was about how we could somewhat regionalize things, certainly roads and railroads and highways and other things, and most of the people that come in on--to your--to your airport come from somewhere else---- Mr. Reed. You are right. Mr. Webster [continuing]. Sometimes out of your State, and none of those stop at your city line nor do they stop at the Georgia State line. How do you--do you have any suggestions for us on how we can, without overburdening you with some sort of Federal--Federal heavy hand, help you in becoming or maintaining a regional picture that goes beyond your State or city boundary? Mr. Reed. Yeah. I think that you can help us by identifying Republicans and Democrats that have addressed regional efforts and partnerships successfully. There are not that many of them, but what we like to have in politics is examples, so--and I think that Governor Deal and my relationship has been talked about--not across the country--because we are kind of unusual, but to the extent that you have bipartisan solutions on regional issues and you hold those up as examples and reward folks for engaging in that behavior, I think that you help America. The State of Georgia got turned down for TIFIA four times. When the Governor and I both supported the application, we got a $270 million grant. And I think that that is--I remember when we walked in Ray LaHood's office, he didn't understand why we were there together. What is this mayor of Atlanta and this Governor of Georgia, who had been a Member of Congress for 20 years, walk in to his office for? When we have examples like that, I think that committees like yours, with all of your influence, should hold them up and look at what we worked on and what we got done, and I think the country can learn from that, because, you know, I served in the legislature a long time. When folks come to see you, if they are really smart, when they start opening their mouths, they make sure that they don't tell you anything that is going to get you beat. I know that is how--I used to--when folks used to, like, don't come in here with something that is going to get me beat. So you have got to be able to tell me about examples where other people have done this and lived to tell the tale, and I think that that helps the country, and that is what you all did on WRRDA, and I think it is what you all can do on this surface transportation bill. This is the biggest opportunity to create well-paying jobs in the tradition of Eisenhower that we are going to have around here in the next 24 months. Mr. Webster. Thank you very much. Mr. Shuster. Thank you for that insight, Mr. Mayor. And with that, Ms. Hahn is recognized for 5 minutes. Ms. Hahn. Thank you, Mr. Chairman. I also recently served on this terrific panel on 21st-century freight transportation. We were tasked with coming up with recommendations for a national freight policy in this--in this country, and we traveled across the country, everybody came out to L.A., Long Beach, to look at those ports and understand what impact those ports have on our country. One of the recommendations that I helped craft was a recommendation that would have required our DOT Secretary to identify corridor-based solutions to freight mobility. I represent the Port of Los Angeles, and I understand what we are talking about when we talk about the last mile. And I have been told that cargo gets diverted, not because of any fees or environmental regulations in our ports, because it--but it is because of land side congestion. So I was disappointed to see that DOT failed to include last mile connector roads, which connect our ports to major highways, in their recently released MAP designating the primary freight network. I think that is a big oversight. And nobody understands, you know, the congestion or dredging as much as I do. I have traveled to the Panama Canal. I understand what that is going to mean to our U.S. ports, but I also know that--you know, they call me Ms. Harbor Maintenance Tax around here, because I have been on this issue since I came to Congress 2\1/2\ years ago. We have $9 billion in surplus in our Harbor Maintenance Tax that we are not spending for the purpose for which it was collected, which is to invest in the maintenance and the dredging of our Nation's ports. The head of Army Corps told me that if we could release all of that money, they could have our ports dredged to 53, 54 feet within 5 years. That would create jobs, and that would keep us globally competitive. But I will say, Mr. Levenick, it was very disturbing, very disturbing for me to read your testimony and to hear your testimony. And I understand, again, we need to do a much better job of dredging our ports, being globally competitive, working on that last mile, but, you know, I feel like you are part of the problem and not part of the solution. You are shipping 40 percent of your product through Canadian ports, which means basically you are avoiding the Harbor Maintenance Tax. So you are avoiding paying that, and that is the very money that we use to maintain our ports and harbors. And we are looking to actually expand the use of the Harbor Maintenance Tax to include possibly land side improvements that relate to our ports. So you are failing to pay it, you are avoiding it, and then you are using our infrastructure, and you are complaining that our ports aren't dredged and our infrastructure's not maintained, so--and by the way, I just want to go on record saying, I know, and I am glad you said it wasn't one thing that caused you to abandon our U.S. ports, but, you know, automation is not going to be the answer to making us, you know, more efficient. I mean, we are--we are--you know, we--if there is one thing we got to fight for, it is good American jobs, and there are good American jobs at our ports. And automation may be coming and maybe it is a little more efficient, bu it is not the answer. And with automation comes the disruption of good American jobs, and I am not sure that is what we need to be focusing on. I think there are other ways to be more efficient and move those goods, but we have got to talk seriously about our roads, our infrastructure, our bridges and certainly that last mile. So what other ideas do you have? And by the way, I am disappointed that you are a board member of the United States Chamber of Commerce, and you are abandoning our U.S. ports and shipping your products through Canada. You know, I just don't think that is a good message. So what other ideas do we have collectively, and I would like to hear you, to improve that last mile, to improve the congestion and to make this seamless transportation network that does include more on dock rail, you know, better near dock facilities and moving this cargo more efficiently? Mr. Levenick. Well, first of all, I think what has drove us to that decision is not some arbitrary decision that we are abandoning the United States. I mean, the whole reason I am here is we are one of the largest exporters in the United States, and we would love nothing better than--and we find it, frankly, crazy that we can't export efficiently on a global basis from our U.S. ports, and the only alternative to be globally competitive--our customers around the world don't care about U.S. jobs. They care about a cost-effective delivery of their product on time and in a competitive cost. And so we are forced as a global competitor, like anybody in the global economy, to play by those rules. The suggestions I think we have laid out, and I am glad to hear that you understand that it is not--it is not one solution; it is an integrated network. That is what the rest of the world's going. That is where the rest of the world's going. One solution on, you know, a weight limit addressment or just purely highway funding isn't necessarily the answer. It is got to be--this is where I think the Federal Government really plays a role, and I compliment the study that was done for--by this committee over the last 9 months. So I think that is a great blueprint for where this country needs to go, but ultimately, it is about an integrated network, you know, led by I think the philosophy driven by this committee and the Federal Government with flexibility for regions and for States that will get us back to where we need to be, but by no means are we abandoning U.S. Ports. I mean, the ports that we do use today, of course we are paying taxes. And we would like to see those taxes spent against--or those fees spent against the improvements you are talking about. But we would love nothing better than to be able to ship all of our goods--it only makes sense. The ports are closer to our places of manufacturing in the United States than Canadian ports. We are only doing that because we are driven by the global economics. Ms. Hahn. Well, and--but you are. I mean, you are-- certainly you talked about abandoning L.A., Long Beach. And, you know, our local economy in Los Angeles is really tied to the economy of Long Beach and L.A. When cargo is down in those ports, you know, small businesses suffer in Los Angeles. Thank you. Mr. Shuster. Thank the gentlelady. With that--is Mr. Davis here? Oh, there he is. Mr. Davis is recognized for 5 minutes. Mr. Davis. Well, thank you, Mr. Chairman. I appreciate the opportunity. Mr. Shuster. Sorry. I forgot you were sitting on the other side of the room. Mr. Davis. Yes. Thank you, Mr. Chairman. Right in front of Ms. Harbor Maintenance Trust---- Ms. Hahn. Thank you. Mr. Davis. Thank you very much, Mr. Chairman, in all seriousness, and thank you to the panel. This committee--and what has been great for a new freshman like me to hear is the talk about the cooperation and bipartisanship, especially when it comes to transportation issues. This committee recently passed a bill, passed the WRRDA bill out of here unanimously. We don't hear about that in the press. We don't hear about bipartisanship and cooperation. So whether it is Batman and Robin, Mr. Mayor, or you and the Governor, you know, it is great to hear where you are making successes on a bipartisan basis when you talk about infrastructure and implementing it in a very cost-effective way. And I would also like to congratulate the city of Atlanta on three Hall of Famers this year. Mr. Reed. Yeah. Pretty good. Mr. Davis. Yeah. Congratulations. And thank you for what you do for that great city. When you talk about cooperation, you talk about infrastructure. We have examples of success all throughout this country. Next month, we are going to open the Stan Musial Veteran's Memorial Bridge across the Mississippi River from Illinois into Missouri, and that was a project that had been long planned. And it took bipartisan cooperation from--they are not Batman and Robin, but two that I would like to call out are former Member Jerry Costello from the State of Illinois and also my colleague and friend John Shimkus for their bipartisan cooperation, but it took so many others to work together to make that project a reality. And we on this committee have the opportunity to do that together. I am glad the chairman has begun the dialogue and opened up the process of us being able to do that. And all of you today have provided me a great knowledge and a great optimism on where we can go. And I do have a couple of specific questions. Mr. Levenick, as you know, it has been a difficult year in Decatur, Illinois. However, I was really excited to here that Cat's application for a $694 million loan was recently approved, and that is going to hopefully provide more mining equipment to a new iron ore mine in Australia. I am hoping that means an increase in workload for your Decatur plant and more jobs for my constituents. And in your opinion, though, what is the most important thing this committee can do to help Cat, ADM and others in the Decatur area bring more jobs to central Illinois? Mr. Levenick. Well, I would piggyback a little bit on what Mayor Reed said before. I think--you know, we located a facility in Athens, Georgia, essentially to take advantage of what we believe is going to be world-class infrastructure. We moved goods back to the point of where they are consumed from overseas. I think that was a very good move for us and for the country. And simply stated, I think what Cat and any other manufacturer or business like us that is a global exporter needs is a sufficient network of transportation. Make us globally competitive. That is going to create more jobs in the United States. It is going to make us more successful as a country, raise our standards of living; integrated multiyear, multimodal program with certainty is going to give us the competitive advantage we need to be globally competitive. Mr. Davis. Well, thank you very much for that. And I know in your testimony and also in your responses today, you talked about the investments other countries are making to transportation and infrastructure systems, and also how an organization and a company like Caterpillar would make decisions. And you have let us know how much of a factor efficiency and reliability of the surrounding infrastructure is when you make those decisions. And today's marketplace is global. We understand that. And I respect the fact that you have to make decisions on a global basis. However, within the State of Illinois, in particular, in regards to the many facilities that you have in that great State, what would you say is the number one transportation impediment to growth and expansion in the State of Illinois versus in Athens, Georgia? Mr. Levenick. Probably the--it is different in every State, obviously, but I think probably the challenge in Illinois would be the highway system. It has been underinvested in for a number of years, and it needs to be upgraded, repaired, replaced. It is not a--like other States, it is--Chicago is a very big metropolitan area, but the rest of the State where our facilities are located is, you know, relatively resident or smaller communities, Peoria, Decatur, Aurora, so the infrastructure that exists there is just outdated and needs to be upgraded. Mr. Davis. Well, thank you very much for your testimony. I had some more questions, but since the chairman didn't recognize I was here, I ran out of time. I yield back. Mr. Shuster. Well, I am sorry. I really apologize I didn't recognize the gentleman from---- Mr. Davis. Does that mean I get more time? Mr. Shuster [continuing]. Illinois. No, but I have to point out to the committee that the Stan Musial Bridge is actually the Stan Musial Bridge II, because the Stan Musial Bridge is in my district. It runs across from Donora, where he was born, to Monessen, Pennsylvania. So I just had to point that out to the gentleman from---- Mr. Davis. Little minute details. Mr. Shuster. And with that, I recognize Ms. Napolitano. Mrs. Napolitano. Thank you, Mr. Chairman. And I, too, want to thank you and Ranking Member Rahall for working on a bipartisan basis. Now all we need to do is have the witnesses understand that we need your help in convincing the other Members of Congress to vote for a 6-year bill. We have been wanting it. We have been needing it. And you know better than anybody where that need is. And if we don't work together and convince some of the folks that will help us put that 6-year bill forward, that we won't be as successful, so I am asking for your help to be able to convince some of the Members who are a little reticent on doing a 6-year bill versus a 2-year bill. And you talk about global competitiveness. And I am from L.A. The ports that Ms. Hahn talks about run through my district, the freight, and the great separation, the funding isn't there to be able to increase the number to do more on- time delivery. The railroads are not putting as much money as we would hope they would. And somehow we need to be able to change the mentality of where the job development is, what it is going to mean to the economy and how we can all partner and be better, how would I say, served? And, Mr. Reed, I am a former mayor of a small city---- Mr. Reed. I know. Mrs. Napolitano [continuing]. And it is--that is where the rubber hits the road. That is where people will come to you and tell you what their needs are. And you are right. We need to have a lot more of the ability for the local communities to make up their mind what their needs are rather than to have somebody tell them, but what about an infrastructure bank to be able to help those communities that are note able to finance their own projects being able to get some help from transportation funding? And that is some of the things that I-- that I have very, very key in my mind. And you talk about infrastructure development. South America is going great guns to be able to take some of those freight lines away from us, or freight corridors. The infrastructure that is being spent in many of the countries far outweighs, as you pointed out, what we are doing in this country. To some of the areas, and this goes to Mr. Reed, is-- Honorable Reed, is the local hire preference. It used to be years ago when the law was first proposed and passed, it was 80 percent Federal funded to 20 percent, and it is now reversed. So why are we not allowing the communities to be able to do local hiring, because they know where their pockets of poverty are that can benefit from job development and job training, and somehow we have not really reversed that to be able to allow local communities to do a lot more of their own economic development. That is one area. And the other area goes, of course, to Mr. Hanley is we didn't talk about safety, transit operator safety, whether it is railroad, bus drivers. I think we have more bus drivers, as you pointed out, suffering from fatigue and causing accidents. You have more accidents with buses than you do with airplanes. Now, how do we address those, and how do we begin to understand that all of it comes together? You have to have the funding, you have to have the community support, and you have to be able to have driver safety or employee safety, because not only is it the person who is doing the driving, but it is also the people he has under his charge, whether it is a bus or a train or a plane. Anybody. Mr. Reed. Well, Congresswoman, I would start by saying I fully support your feelings regarding an infrastructure bank, because of the reversal in funding that you have pointed out. So when our MARTA system--we have the ninth largest system in America. It does not receive State funding and runs in a pretty strong fashion. When it came about, it was 80 percent Federal, 20 percent from the State and local. That has changed, which is why--and I was aware that you had been a mayor, which is why I think mayors have to have a bigger say, because the bottom line is 70 percent of the GDP in America is in cities. So I would fully support your efforts around an infrastructure bank. And I advocated in my own remarks that mayors need to have a seat at the table to have their own ideas baked in and to use the tools that we use. So you referenced the local hire initiative. All of that is impossible under the current framework that is being sent to us, because we are not even at the table. And so getting folks well-paying jobs is being slowed down at the Federal and State level. And so I was just advocating one that I think that the infrastructure bank is a good solution, that once it works its way through and comes out in a bipartisan fashion, I think it is going to be part of the future because it will extend the Federal Government's resources at a time when we need to do more with less. Mr. Hanley. In our formal written testimony, Congresswoman, we addressed all three of those areas, one being the fact that there is a massive wave of assaults on transit workers, particularly bus drivers throughout the U.S. and Canada right now. We believe it is connected to the fact that they are in a bad economy, that the service has been cut, passengers are angry and the fares have gone up, but these are very critical assaults that are going on. People are being beaten within an inch of their life. The other thing is that in public transit, one of the dirty little secrets that nobody ever wants to talk about is that transit systems do not provide bathroom breaks and do not provide access to bathrooms, and as a consequence, and this is a safety and health issue, drivers all over the country are driving around developing diseases, not being able to use bathrooms, limiting their intake of water, and this is something that we would like to address with Congress during this reauthorization. Also, in the over-the-road industry, which you just mentioned, the Greyhound-type buses, not just Greyhound, because of deregulation, we have had a huge increase in safety hazards and deaths. People are dying all over the country. More people die in bus accidents now than in plane crashes, and that is because of the fact that our Government has abandoned regulation. Mrs. Napolitano. Thank you. Thank you, Mr. Chair, for your indulgence. Mr. Shuster. Thank the gentlelady. And with that, I recognize Mr. Barletta for 5 minutes. Mr. Barletta. Thank you, Mr. Chairman. I would like to thank the chair also for putting this panel together. I enjoyed hearing from all of you. I, too, was a mayor; I was a mayor for 11 years, so I agree with the importance of having mayors at the table in the decision process. There is not a tougher job in politics than being a mayor, as you know. And I also understand the importance of public transit and what it means to a community. My family was also in the road construction business, so I have been on a Cat 956 front-end loader. I also understand that in that industry, contractors are not going to buy a $500,000 piece of equipment on a 2-year bill; that if we want people to make investments, they need to know there is work for 5, 6, 7 years. There is also nothing better for the economy than a long-term bill, because when there is a lot of construction work, construction workers make good money. When construction workers make good money, they take their families out to eat. They spend it in the local economy, and that money stays right in our communities. I also believe that public-private partnerships are very important in the fact that we are able to stretch our dollars and bring the private money in so that there are more projects. When there are more projects, more people will be working, and maybe we wouldn't be talking about extending unemployment compensation if there was more work for construction workers so that they know that they had a job. Mayor Reed, your northwest corridor project is very interesting. I would like if you could explain a little bit of that and what the TIFIA program means to that project. Mr. Reed. Well, what it means is we have a choked I-75 north corridor, which is northwest above the city of Atlanta. And our metro, now, Congressman, is 6.1 million, so we have got the ninth largest metro in the U.S. The problem is, is that we grew that fast probably 20 years ahead of where most folks thought we would get there, and so that corridor is choked and congested. The State of Georgia enjoys one of the highest bond ratings in the United States of America. We are one of seven or eight States that have Triple A ratings by all of the major rating agencies, and we needed the Government's help. And so we had applied before. We applied most recently, received a grant under Secretary LaHood, and then that grant was--is being used in that corridor. And I think it just represents one of the best solutions, because you all are not encumbering the Federal Treasury with debt. We will pay it back. We are capable of paying it back, so we think that that should be held up as a tool and talked about and talked about and talked about. And I also happen to believe that once you all draft a 6- year bill, mayors across America got to get out and talk about it and help you explain, because the bottom line is I certainly agree with my colleague from Caterpillar, is that it is really about competitiveness, but folks aside from Members of Congress need to get out and say it. This is about the America that we want to have, and so the bottom line is if we don't deal with our arterials and our traffic and the deepening of our ports and our roadways, you know, we are giving away where everybody says the growth is, which is in our international routes and access and in the global economy. So that is my straight answer. And so much freight travels on that 75 corridor to the rest of the United States, certainly in the Southeast in the United States. Atlanta and our metro is the hub and is the most dynamic economy in the Southeast. Our metro economy is larger than that of 30 States. So this is real money, real job creation. It is about a $298 billion metro economy. Mr. Shuster. Thank the gentleman. With that, Mr. DeFazio is recognized. Mr. DeFazio. Thank you, Mr. Chairman. Mr. Levenick, earlier Governor Fallin talked about the fact States have stepped up and said that that can't be a rationale for the Federal Government to pull back from its proper share. There is kind of a--well, there are some right wing think tanks around here who are pushing very hard on the idea that we should have what is called devolution; we should devolve the duties of financing, coordinating and constructing a system, a national transportation system, to the States. And when I say to them, well, how is that going to work? For instance, I guess there was some earlier discussion about you using harbors in Canada because it takes longer through L.A. So how does that work for L.A.? So they provide their freighters to go all over the United States, but the Port of L.A. and California should pay for the Port of L.A. and the Federal Government shouldn't? I mean, what do you think about this theory that we should devolve back to the States the duties for a national transportation system? Mr. Levenick. Well, I think, first of all, we don't support that. Mr. DeFazio. Good. Mr. Levenick. That is the simple answer. Mr. DeFazio. That is good. Mr. Levenick. I think the chairman said it in his opening remarks, the Federal Government has always had a constitutional role that creating a national system of transportation that supports the common good. We couldn't agree with that more. We need an efficient network. And you have seen States take the initiative, and we commend it, because they are acting in, I guess, their own self interest to pass gas tax or find funding mechanisms to drive some investment in infrastructure, because they recognize the importance, but that can't really be the answer. If we wind up with a patchwork of 50 different solutions, you don't have a network, and that is some of the heartburn we see today with all the different regulations and the inefficiency in the system is driven by, frankly, a lot of variation in our network that has likely evolved over time because some States didn't keep up with--you know, with the development of world-class transportation that others did, and we wind up with this situation. So I don't think devolving the responsibility for this to the States is an effective solution if we are going to be internationally competitive. Mr. DeFazio. And then just--I recently visited an equipment manufacturer in my district, Johnson Crushers, they make rock crushers, and I think you may compete in some areas, but they made a point and they showed me graphics that whenever we are uncertain about the future of the Highway Trust Fund or we are inadequately investing, domestic orders drop off dramatically because the contractors don't see the work in the future. And one of the States already--it might have been Oklahoma, I can't remember--has said we are pulling back on our investments, because we don't know if the Federal cost share is going to be there, because the trust fund goes to zero next--next fiscal year. Have you seen the same impact on Caterpillar's heavy equipment domestic sales that when there is uncertainty about the future or we are not investing adequately, that your sales suffer? Mr. Levenick. Yeah, we have seen that. And we certainly hear it from our customers, who are very vocal about it, and our dealers who, you know, explain very clearly that, you know, without a long-term solution, we won't step up and make the long-term commitments on investments that are necessary. One of the phenomenons that I think supports that also is the dramatic expansion of the rental industry for heavy equipment. People are choosing more to rent rather than buy as a result of this or hold on to equipment longer than they otherwise would. So there is a whole series of things that play out, and it varies State by State, but that is---- Mr. DeFazio. And that, obviously, has a major job impact here in the U.S. Mr. Levenick. Absolutely. Mr. DeFazio. Thank you. Mr. Hanley, quickly. One point I was surprised you didn't make in responding to Mr. Hanna was the fact that there--can't we say that there is a tremendous net benefit to highway users, particularly in urban areas, from having diverted people from being in single-occupancy vehicles, adding more to congestion and delaying people more? Would you--you want to address that briefly? Mr. Hanley. Well, I couldn't have said that better. You know, again, we found out some of that--some of the effects of congestion in Fort Wayne, New Jersey. You know, the fact is that if transit riders stopped riding transit tomorrow, this country would come to a standstill, and the same impact will occur if we don't plan ahead for the next two appropriation--I am sorry, the next two authorization periods, because the population in our cities is going to explode: 80 percent of the people in this country live in cities, and the population of many of those cities is going to grow by 30, 40, 50 percent. So it is--there is a much longer answer, obviously, to what the Congressman asked me, but the fact of the matter is that transit riders pay more than their fair share for their systems. Mr. DeFazio. Thank you. Thank you, Mr. Chairman. Mr. Shuster. Thank you. And Mr. Bucshon is recognized for 5 minutes. Dr. Bucshon. Thank you, Mr. Chairman. Thank you for the time. Thank you, panel, for being here. It is very much appreciated. I wanted to focus on Mr. Hanley. Following up with Mr. DeFazio and Mr. Hanna just talked about. And I think the mayor said this, well, that everything should be on the table. I mean, if we are going to fund infrastructure, then everything should be on the table. And as you are aware, in MAP-21, as it passed out of committee, transit was separate. It was separated out from the gas tax. And we are not going to get into that debate today. But the point is, is that people on the committee here are struggling to find ways to do exactly what you want for your workers. Because--exactly what Caterpillar wants, exactly what the mayor of Atlanta would like to have. And that is more money for infrastructure. I think we can all agree on that. So if we are going to have everything on the table--and I know you said the people that ride mass transit are paying their fair share. And I have lived in Chicago; my son goes to Emery University in your great city. And, in fact, I just flew through your airport coming here. I love Atlanta. But that said, if everything is going to be on the table, tell me how you would think that the workers that you represent potentially would be harmed by looking at having that support on the table as a way to overall fund infrastructure, not just--not just mass transit, but as a part of a bigger equation to find more money for our whole intermodal system? Why would your workers be against something that we might try to find a way that transit could support the Federal highway and transit program? I am just trying to get my arms around that. Mr. Hanley. I am not sure I understand the question. Dr. Bucshon. Well, I mean, the gas tax is a user fee. Mr. Hanley. Right. Dr. Bucshon. Is there a user fee--Federal user fee for mass transit? Mr. Hanley. No. But---- Dr. Bucshon. That is the basic question. I am not saying there should be. I am just saying if everything is on the table, what I am trying to understand is why your workers or your industry would be against having that on the table as a part of a way to help us find more money. Because we are--my-- our struggle is finding more money for infrastructure. I mean, I totally agree last time, you know, we funded a 2- year bill--it is not long enough--we used other revenue from other areas of the Government, because the user fees, our revenue is dropping because of inflation and no indexing of the gas tax, blah, blah, blah, we all know what the problem is. I just can't wrap my hands around the--on the transit side. And this is not a partisan issue because we have bipartisan people that did not want that separated out--why finding some money in that area is something that would hurt the workers that you represent. I just don't understand that. Mr. Hanley. But you have it. I mean, I think if the goal is to say that because people who ride in cars pay gasoline taxes, and some of that goes to transit, then therefore there has to be some special Federal taxation on transit riders because they ride transit--I think that is what you are saying. Dr. Bucshon. I am just saying it seems--don't get me wrong, I am not for or again--I am just trying to have a conversation here about if we are going to have everything on the table. There are some people in Congress that think transit should not be in this highway bill, should be subject to annual appropriations--and I am not saying I am for or against that, but that's what passed out of committee last time. So, in our discussions, you know, how can--you can help convince us when we need more money that we should keep that in there and--and everybody else should have their taxes raised like you--you pointed out, like the general fund, say just for argument's sake, the millionaires--and that is a direct quote from you. Mr. Hanley. Billionaires. Dr. Bucshon. Millionaires, billionaires, that is the talking point. And, by the way, I was disappointed that you used the national talking point of the bridge from New Jersey to New York in part of this discussion. I thought that was inappropriate. But the fact of the matter is how can you convince people that, OK, we should do that and we should use those general funds to pay for transit, which, as Mr. Hanna pointed out, it is--in fact, I rode--in Atlanta, my son took me to--drove me to one of your train stops on the North Side and rode it directly--I love mass transit; I ride it any chance I get. I am just trying to get my hands around how you can convince us that if everything is on the table, that that that isn't. Mr. Hanley. I think we have to walk for a minute through history and consider the impacts of the Eisenhower highway program on mass transit and on mobility in America. You know, prior to that highway program, people got around by using trollies, trains, buses. That is how they moved around the United States of America in our cities and between our cities. And this Government made a choice in the Eisenhower highway program to change radically the way Americans lived, to create suburbs, to drive people out of cities or to encourage people to get out of cities. It was a completely subsidized operation by this Federal Government to move Americans from their cities out to suburbs. And there came a point in the 1960s where all of the transit systems were going broke. The ones that were not taken over by the auto industry, the national city bus lines, which was a creation that was pursued by the Justice Department for ripping up trolley systems all over the country. This is a fact, this is what happened. So then what came about is in the 1960s, mobility in American cities was in collapse. Bus companies were going out of business, train companies going out of business, until the Federal Government finally had to step in. This was really the mirror image of the highway program, where the Federal Government had to step in and subsidize transit to get it back up and running in order to keep our cities moving. Now what is happening is the exact opposite phenomenon of what happened in the 1950s is occurring, not because of a Federal Government program but because young people are saying, no, no, I don't want to live in the suburbs, I don't want to have a 4-hour commute every day. I want to live where I work. And there are other factors obviously involved in that. But these are societal changes. And I just don't think we can attempt, rationally, to isolate where Federal taxes come from for a particular program. I think that is a failed strategy, and there are many reasons why but I know I am out of time. Dr. Bucshon. OK. Thank you. I yield back. Mr. Shuster. Only thing, Mr. Hanley, I would say I disagree on is the Federal Government does provide dollars for the highway system, but it is a user-based system. So if you use it, you pay for it, and that is what Mr. Bucshon, Mr. Hanley, again, we need to look at everything. And, you know, I am a big rider now on the train from Harrisburg to Philadelphia. And the State put in $100 million for Amtrak, and they reduced the time. And, you know, I have said many times in this committee room and many times across this country, every time I get on that train and I look at the ticket price and the figure on the back of the envelope, I should be paying more for it. Prime time, they are not making money. I think they have inched it up some. But when I do the back of the envelope, on gas, tolls, parking, and then my productivity goes from zero in a car to 100 percent productive, you know, sometimes I think we are not looking at that in transit systems. As we said, there are a lot of rich people that are riding--I think Mayor Bloomberg rides the transit system. Mr. Hanley. Not really. Mr. Shuster. OK. Mr. Hanley. I have been there. Mr. Shuster. I believe you. But I think, you know, we have got to be looking at those kinds of things and how we can make transit systems--look I don't believe they are ever going to pay for themselves, but to get them paying more for themselves so that everybody is going to benefit by it. Because your argument is right, the logic is clear. People that get on trains and transit aren't in their cars. And that would cause us a huge, huge congestion explosion if we did that. So we have just got to be thinking about different ways. And I think Mr. Bucshon is trying to get at that. What do we think about how do we get around it? That is the key to it. With that, Ms. Edwards is recognized for 5 minutes. Ms. Edwards. Thank you, very much, Mr. Chairman, and thank you to our witnesses today. You know, I have been so intrigued but these conversations about transit riders subsidizing the transit for what we put into gas tax with the roads. Because I can think of a number of public goods that--public good that we get from having transit in place, not the least of which is taking so many people off the highways so that our trucks and commercial vehicles can travel more safely and more efficiently. I can think of the public good of improving our air and water quality because we are not having all that, you know, sort of oil dripping down into our waterways. And we experience that in Metropolitan Washington. I can think about the contributions to strengthening the quality of life when people can get home to their families, get to their jobs on time, and take away that stress. So if we are going to begin to quantify things, I hope we begin to quantify some of those things when it comes to asking whether transit is a net positive or a negative. And, frankly, sometimes people in my district and my State ask me why, when we are such a thriving State in a thriving metropolitan region that is contributing a lot to the economy, why we are subsidizing roads out in the middle of nowhere? And I say, you know what? It is because we are Americans, and we make an investment in a national system. And so the folks in the rural areas get their roads, and in our metropolitan area, we get our transit. So I hadn't planned to go there, but this conversation has just been so fascinating. I listened earlier as well. And thought from the perspective--and I want to ask about this, about workers. Because I think about the workers who work for Caterpillar and other manufacturing companies who are going to be charged with building the equipment that will improve our infrastructure. The workers in communities like Atlanta and here and this region who build the roads, maintain the highways and bridges and maintain and operate our buses, our Metros and our commuter rail. And I am no Mayor Bloomberg, but I have been known to get on our Metro system and get on our buses and, of course, the workers, who ride, drive, and commute. And so my question really goes to Mayor Reed and to Mr. Hanley asking about wages and benefits and things like transit benefits that go to workers so that they get off the roads. And whether we are paying prevailing wages so that the jobs we are creating actually enable people to take care of themselves and their families and build that kind of thriving economy. And I wonder if you could comment about the importance of those kind of policy initiatives as well when we consider reauthorization. Mr. Reed. Well, I would start by saying that the reauthorization bill is going to help drive construction, which in my community took a 50,000-job hit during the worst of the recession. And the city of Atlanta is one of the biggest actors in the construction space in the region and the State. So we are in the middle of building a $1.2 billion football stadium. We have a $6 billion capital program at the airport. We have $2 billion more to spend in water and sewer---- Ms. Edwards. You prevailing wage standards that apply to that, especially of course when---- Mr. Reed. We don't have prevailing wage standards that apply to that, but we have initiated a mentor program, and we do provide benefits to businesses that hire locally. So we don't have prevailing wage program. But I will tell you this, I have been mayor of Atlanta now for 4 years. And without any kind of program, I have raised the salary in the city of Atlanta for every single employee to $10 an hour or more. Because I made the decision as the leader of my city that nobody was going to have a full-time job with my city and be in poverty. Ms. Edwards. Could I get a comment from Mr. Hanley before my time runs out? Thank you, Mayor. Mr. Hanley. There are many, many hidden subsidies involved. There are many hidden subsidies involved in highways and cars. And one of the ones Congresswoman Duckworth joined us in pointing out and that is the fact that we have this need for oil, which creates a need for wars, which creates a need to American kids to lose their lives, their limbs, and their heads. And that is something that is never factored into this public discussion about the importance of public transit. And the question was then about wages also? Ms. Edwards. Yes, wages. Mr. Hanley. Well, the fact--I recently had a meeting with about 30 new presidents of locals in our union throughout the country and Canada. And one of them got up from Ohio and said he has members who work full time and work overtime and qualify for food stamps. And that gave me pause. And I said: How many presidents in this room can say the same thing? Every one, except the Canadians, said that they have workers in their union working full time qualifying for food stamps. Ms. Edwards. Let me just, very quickly, because my time has run out. When we reauthorization surface transportation, do you think it is important for us to make sure that we maintain strong prevailing wage standards when it comes to spending Federal dollars? Mr. Hanley. It is absolutely vital. Ms. Edwards. Mr. Chairman, if you could, if we could get an answer from the panelists here about the idea of tying tax rates to construction inflation like we do in Maryland in terms of strengthening the Highway Trust Fund. Not raising the gas tax, but tying increases to construction inflation. Florida, Massachusetts, and Maryland are three States that do that. And if we are looking for other revenues to strengthen the Highway Trust Fund, I would just be curious, particularly, you know, from our friend in Caterpillar, if you would respond to that. Mr. Levenick. Well, sure. I think--I think that is a legitimate question to ask. Like I said before, I think there are going to be multiple ways that we fund this. One of the big fallacies with or the big disadvantages with, you know, the 1993 highway bill was that it was never indexed against inflation or fuel efficiency. And I think correcting those gaps in whatever we do going forward will be a big step going forward. Ms. Edwards. Thank you, Mr. Chairman. Mr. Shuster. I thank the gentlelady. And the gentleman. With that, Mr. Meadows is recognized for 5 minutes. Mr. Meadows. Thank you, Mr. Chairman. And thank each of you for your time. I think I am last up, but you are going to get to go home shortly. Mayor Reed, I just want to compliment you on your bipartisan way, and it has real effect. I live very close to Atlanta. I am probably closer to Atlanta than I am Charlotte. My other favorite mayor is now Secretary of Transportation. Mr. Reed. Good friend of mine. Mr. Meadows. I consider him a great man in the spirit of what you have shared here today. But in a bipartisan way, you have my commitment to work on this. I want to thank the chairman for being proactive in working on this ahead of time so that we can get truly good policy as it comes forth and we address this particular issue. Mayor Reed, I would be interested--you serve the Atlanta metropolitan area. And yet much of what you have talked about here today is looking at transportation from a holistic point of view, from the ports, obviously, to the city. How do you sell that to your constituents that will make a decision every 4 years on whether you are going to represent them again? Mr. Reed. I think we sell it because my constituents understand competitiveness. And they understand that in order for me to make sure that they have the kind of opportunities that allow us to have the fourth largest concentration of Fortune 500 businesses, that we have to have global access and global connectivity and that we have got to be competitive around the world. And so most people in the Metropolitan Atlanta region know someone or related to someone that has a job that is tied to one of our major businesses or major industries. And so that is how we sell it. Mr. Meadows. So putting more of an emphasis just on light rail or MARTA or whatever it might be is only one component of transportation in terms of those that benefit the constituents that you represent. Mr. Reed. You are right. And you have to make the competitiveness argument. And that is really what carries the day for us. That is how you cut through the partisanship. Mr. Meadows. Thank you. Mr. Hanley, in your testimony, you mentioned a GAO report. And in that report, it also made--that same report made mentions of really the private sector working on public transit. And the benefits. But yet in your testimony, as I have listened, I guess, to some of the question and answer, you don't believe that the private sector really has a strong role, I guess, going back to some of the demise from the 1964--I don't want to misquote you, but I think that characterizes your testimony. So you agree in part with the GAO study but not in totality. Mr. Hanley. Well, that would be fair. But are you asking a question about our views on the private companies and transit generally? Mr. Meadows. Well, I guess my--how do you pick and choose what parts of GAO study you are going to support? You mentioned it in your testimony. So you pick the part that you like. And the part that you don't like, you kind of throw out, so what matrix do you use to qualify what is a good recommendation from the GAO and what is a bad recommendation? Mr. Hanley. We don't have a matrix. We just layer our thoughts and views and our knowledge on what we read in the GAO reports. And sometimes they are right, and sometimes they are wrong. Mr. Meadows. But, I mean, guess, how do you make that determination? I mean, for me as a Member here, I am trying to figure out, OK, how do I value that? And so does that come from a personal bias or where does that come from? How---- Mr. Hanley. Years of experience. Mr. Meadows. OK. Years of experience that the private sector is not the best solution is what you are saying. Mr. Hanley. I know what happens. I know what happens when you inject profit into public transit. I know what happens to workers. I gave you the example of a French company run by the social security system. Mr. Meadows. Right. Mr. Hanley. Taking away pensions. The problem in a study like what the GAO has is it ignores that. Those facts were not brought up. I would be happy to sit down with the GAO, and they would come out with a much different study if they talked to us. Mr. Meadows. No doubt. Mr. Hanley. There are some facts---- Mr. Meadows. Here is what I would like each one of you for the record if you could give me three areas that would perhaps be painful to absorb or handle in terms of a--what you most would like not to see happen in a highway bill that is coming up. And what I would like you to do is identify those three areas that are most problematic for each one you. And if you would submit that to the committee for the record, I would appreciate it. And I yield back, Mr. Chairman. Mr. Shuster. Thank the gentleman. And with that, Ms. Esty. She has been waiting patiently. Ms. Esty. Thank you. It is so nice to be recognized over here. There is a blind spot. Thank you, Chairman Shuster. And belated happy birthday. Thank you, Ranking Member Rahall. And thank you, gentlemen, for--and departed Governor--for being here and joining us today on this very important initiative. And I am glad we are starting these hearings early. This bill, I would agree with several of my colleagues that I think this has the opportunity to be the most important piece of legislation we work on this year, and we need to do it in a bipartisan way, and your assistance in helping us do that is much appreciated. And look forward to continuing, Mayor Reed, our conversation from last year on these important issues. And how we grapple with the reality that the trust funds are woefully inadequate to meet the needs that we have, even if we were all dedicating those funds to the present needs. My constituents span the rural to the urban. I have all of that in my district. So I have to make that competitiveness argument, that essential-need argument, each and every day. And they are prepared for and want us to invest in transportation. Just last week, the mayor of my largest city, in Waterbury, Connecticut, announced an initiative to put up money on the local side for a TIGER grant for a greenway, not necessarily what you would think the most important issue is for a former manufacturing center. But they see that as vital to this integration of roads and rail and walkability to address the demographic needs of young people. And I have three of them who want to live in a city and don't want to drive cars, but they want to be in a vibrant city. So we have to do better as a society to the figure out how to integrate these needs. But the same city of Waterbury is hampered by a notoriously congested highway, I-84, which desperately needs to be upgraded and has corrosion and is falling apart and is affectionately known as the Mixmaster, so you get a sense of what those highways look like. So we need to have a long-term bill. You know it. We need to convince the public and our colleagues of it. That long-term investment is going to be essential to get the sort of partnering of public-private money that clearly we are going to need to leverage to address the needs. So I would like you to maybe, Mayor Reed, to start with you, to make the case as persuasively as you can as to why these investments are so essential for economic development. You know, unless we turn the curve so we are looking at a growing pie in economic development, we don't get to the real core issue, which is jobs, jobs now and job in the future. And so if you can expand on the critical role that transportation and the surface transportation in its myriad forms plays in that, that would be helpful. Mr. Reed. I would start by saying that during the worst of times, we had a bill called the American Recovery and Reinvestment Act. So it was a $784 billion bill. And no matter how you feel about it, if you do an analysis of the verifiable jobs that were created, there was about 10 percent of that bill that was spent on transportation and infrastructure. It yielded more than 30 percent of the jobs that could be verified. So no matter how you feel about the overall bill, if you care about jobs, there is no question that transportation and infrastructure is where you create verifiable jobs. That would be number one. Number two, the long-term bipartisan nature of transportation and infrastructure since President Eisenhower is undeniable. So this is an opportunity that creates jobs for Americans that has historically been bipartisan. So it creates verifiable well-paying bipartisan jobs. And, lastly, I would say to those folks, if you love America and want it to be first and the leading economy in the world, it has to have world-class infrastructure because the rest of the world gets it, and they are investing in it. And the fact of the matter is, is that we are losing. And the example, my colleague from Caterpillar points that out more sharply than anything else can. The fact that the ports in the United States are so uncompetitive that 40 percent of Caterpillar's traffic is being sent to Canada I think would be persuasive to any person that cares about their own standard of living. So those would be my arguments. Mr. Hanley. Well, as I said earlier, there is no question about the direct connection between transit--I am leaving transportation broadly aside; I just want to speak about my issue, I am selfish. But the connection between transit and real estate development and real estate values is absolutely clear and undeniable. And the investment that has occurred as recently as the last few years in New York has shown that when you make the investment, the real estate values go up, the tax base gets better, the whole economy gets better when you do that. And it is impossible again what--to have a short-term bill and long-term planning. There is no way we can deal with the problems your kids have unless we have plans that go out at lest 6 years and probably longer. And, obviously, all of these things end up creating a better economy and a better environment. And they deal with every issue Americans have to deal with today, including jobs and education. Just getting kids to school is becoming harder without funding in transit. Mr. Levenick. I am not sure could I add anything to what the mayor said in very eloquent fashion. But I will take a shot. And that would be that I think everybody probably gets the jobs thing. I didn't realize that statistic on the stimulus plan. But that is a good one. But that is pretty obvious. I think the one that we have to have an adult conversation about with the citizens of this country is the economic impact on the future of country. In fact, most citizens don't have the advantage that I have of traveling the world and seeing what is going on in other countries and how far beyond we are falling and what that really means. And I think the incumbent upon all of us in plain English, plain language that people understand what is at stake here. And it really is a standard of living that we have come to expect in this country. And there is no reason we can't do that. It has just traditionally been the role of Federal Government to play a lead roll. There is a role for States. And we have created, I think, a framework here that provides some flexibility. But ultimately, this is about, one, investment in the future, which we are going to get a return on. And all you have to do is look back to the interstate highway days and the Eisenhower program, investments we have made in education and other big national things. It needs to be funded in a way that is fair and flexible and recognizes those who use the resource pay for the resource, and ultimately create a national network that is long term, sustainable, and provides the integration in a network that gives us a global competitive advantage. And for its role, I think it is one that has probably not has been as strong in the past as it is needs to. American business is ready to step up and play a role in telling that story and providing the anecdotes that explain it in plain English to the citizens of the country so we can make some progress. Mr. Shuster. Mr. Levenick, I thank you. Your time has expired. I appreciate all three of you being here. And again, on those words, I know all of you had a great close there. Appreciate that. As was mentioned, this is our first hearing moving toward the reauthorization. But I want everybody to realize, too, that we have been having stakeholder meetings and other types of meetings getting information from the stakeholders. And all indicate clearly from every meeting we have, and certainly from today, it is about certainty, long- term flexibility, reducing regulatory burden. Trying to move this bill in a bipartisan way I think is important for us to do, being fiscally responsible. And I know you just said it at the end, Mr. Levenick, and the mayor has said it probably several times today, it is going to be important that those of you that are stakeholders, those of us on this committee and Congress, we need to educate, advocate, inform the American people about the importance. Because they don't have the same world view on what is happening to a big city if it is not being connected or the different transit systems around the country. And that is incumbent upon us to make sure we are out there talking. And then as we move closer, making sure we are talking to Members of Congress. Because, again, some Members of Congress aren't clear on how far we are falling behind in the transportation and infrastructure that we have out there. So, again, thank you all for being here. With that, I ask unanimous consent that the record of today's hearing remain open until such time as our witnesses have provided answers to any questions that may be submitted to them in writing and unanimous consent that the record remain open for 15 days for additional comments and information submitted by Members or witnesses to be included into the record of today's hearing. Without objection, so ordered. We stand adjourned. [Whereupon, at 12:31 p.m., the committee was adjourned.] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]