The stimulus bill: A balancing 'Act' (Pat Foran, Context, May 2009)

From its nascent stages, through its passage and up to the early phases of implementation, The American Recovery and Reinvestment Act of 2009 (aka “the stimulus bill”) has afforded an opportunity for policy shapers to define and refine the concept of “economic stimulus” as it could apply in the short term (creating jobs ASAP) and over a much longer one (driving economic development and helping to right what arguably is not right enough about the way we conduct ourselves/our business, e.g., “green” initiatives, among others). It’s a “stop the bleeding now/lay the foundation for fundamental change” kind of balancing act. And perhaps nowhere does that act manifest itself more plainly than within the passenger-rail realm.

The stimulus bill includes $8.4 billion for transit programs, $8 billion for high-speed rail and $1.3 billion for Amtrak. It also includes $27 billion for highway programs — which includes a provision that would enable states to allocate some of the funds for rail projects that would reduce highway congestion — and $1.5 billion for an intermodal discretionary fund. And transit agencies, Amtrak and high-speed rail authorities intend to spend it quickly (and, they believe, wisely), as Associate Editor Angela Cotey reports in considerable detail in this month’s cover story.

They also know they’re under the microscope. As Sherry Little, co-founder of transportation consulting firm Spartan Solutions put it rhetorically to Cotey: “How can transit agencies take advantage of the money to show what they can do? It’s a way to demonstrate all the benefits that can come as a result of robust investment in transit.”

In the short run, these demonstrations should help improve passenger mobility (at least a little) and help frame the upcoming surface transportation reauthorization debate. Over the long haul, they could alter our perception of rail transit (make it more or less favorable, particularly with respect to high-speed rail) and serve as an underpinning of President Obama’s legacy. There’s a lot riding on this, you might say. Our online audience sure thinks so.

Stimulus Webcast strikes a chord

On April 22, Progressive Railroading hosted a Webcast focusing on stimulus’ impact on the rail realm. It was presented with aplomb by National Railroad Construction & Maintenance Association President Chuck Baker. Webcast viewers/listeners weren’t shy about weighing in with questions of both the “how does the stimulus bill affect me?” and “what could it mean to the U.S. transportation system as a whole?” varieties. Of particular interest to me were the questions surrounding protectionism. (“Do you expect regulations like ‘Buy America’ to change? … “Is ‘Buy American’ applicable for the entire stimulus package? If not, then how much of a percent is subjected to this?”) It reminded me of a question a reporter for a national magazine asked me earlier this year: “Could the money set aside for high-speed rail be used to stimulate domestic industry or will we be importing all these trains from overseas?” (My initial response: “Depends on how one defines “stimulus” — is this about stimulating the economy now ... is it about making fundamental changes in the way we conduct business ... or both?) It’s certainly a sentiment surfacing in stimulus contexts outside the United States. Witness an April 23 New York Times story: “Japan Pays Foreign Workers to Go Home, Forever.” Interesting times, these.

In any event, the Webcast featured a bevy of timely information, and generated a healthy (even hopeful) conversation; thanks, Chuck, for a terrific presentation (click here to view a replay). We’ll be tracking and tracing the offshoots and upshots of “stimulus” short-term stuff online with our Daily News vehicle as well as within these pages. You’ll also be able to follow us on Twitter.

We’re with you, Treven

Our colleague and friend Treven Feleciano has been recalled to active duty to lend support in Afghanistan. This month, Treven — a U.S. Naval Reserve officer — will be assigned to the U.S. Army as a logistics officer and be part of the Army-Navy embedded training team, where he’ll work closely with the Afghan army. He’ll serve for about a year.

Treven, who is Progressive Railroading’s regional sales manager for the western United States, western Canada and Mexico, plans to do a weekly blog to keep us updated — to the extent that he can.

We’ll be thinking about you, Treven. Stay safe.

Please keep him in your thoughts, too.

Pat Foran, Editor