	Background

SAFETEA-LU authorized over $52 billion for federal transit programs,  including the New Starts and JARC programs, from fiscal year 2005  through fiscal year 2009. SAFETEA-LU authorized $7.9 billion for the New  Starts program and $727 million for the JARC program. Both of these  programs are managed by FTA. The New Starts program is a discretionary grant program for investments  in new fixed-guideway projects. 1). JARC is intended to increase collaboration among transit agencies, local  human service agencies, nonprofit organizations, and others and to  improve the mobility of low-income individuals seeking work. SAFETEA-LU’s Changes to the New Starts Program Range from Identifying New Evaluation Criteria to Establishing the Small Starts Program

SAFETEA-LU made changes to the New Starts program that range from  identifying new evaluation criteria to establishing the Small Starts  program. FTA has taken some initial steps in implementing these changes,  including issuing an ANPRM for the Small Starts program and guidance for  the New Starts program, both in January 2006. The Small Starts program is  a new component of the New Starts program and is intended to expedite  and streamline the application and review process for small projects. The  transit community, however, questioned whether the program, as outlined  in the ANPRM, would streamline the process. In its January 2006 guidance,  FTA also identified and sought public input on possible changes to the  New Starts program that would affect traditional New Starts projects, or  large starts, such as revising the evaluation process to incorporate the new  evaluation criteria identified by SAFETEA-LU. FTA has taken some initial steps in implementing SAFETEA-LU changes. SAFETEA-LU Transformed the JARC Program from a Discretionary to a Formula-based Program

SAFETEA-LU made a number of changes to the JARC program, the most  notable of which was the creation of a formula to distribute JARC funds. Other JARC changes  resulting from SAFETEA-LU include the ability to use a portion of JARC  funds for planning activities and the removal of a restriction on the JARC  funding available for reverse commute projects, which are designed to  help individuals in urban areas access suburban employment  opportunities. FTA has worked to develop guidance to help JARC  recipients implement these changes by soliciting comments and input  through program notices and listening sessions beginning in November  2005. FTA  plans to solicit comments on the draft final guidance and issue final  guidance for JARC later this year. Transparency, Communication, and Accountability Issues Will Continue to Be Important

Our past work suggests that transparency, communication, and  accountability issues will be important as FTA moves forward in  implementing SAFETEA-LU changes to the New Starts and JARC  programs. Since 1998, we have issued numerous  reports on these programs, and many of the reports contained  recommendations to FTA on ways to improve the implementation of these  programs. SAFETEA-LU addressed some of these issues, and FTA has also  taken steps to resolve some of them. Nevertheless, given the number of  changes that are being made to both programs, continued focus on  improving transparency, communication, and accountability will be  important. Typically,  these cases dealt with FTA’s decisions not to seek public input on  proposed policy changes before they were implemented. SAFETEA-LU addressed our past concerns about the transparency of the  New Starts program by requiring FTA to publish for notice and comment  any proposals that make significant changes to the New Starts program. Appendix I: FTA’s Proposed Changes to the New Starts Program

In its January 2006 guidance, the Federal Transit Administration (FTA)  identified possible changes to the New Starts program in response to the  Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy  for Users (SAFETEA-LU). Job Access and Reverse Commute: Program Status and Potential Effects  of Proposed Legislative Changes.
Why GAO Did This Study

The Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU) authorized a significant level of investment--over $52 billion--for federal transit programs. SAFETEA-LU also added new transit programs and made changes to existing programs, including the New Starts and Job Access and Reverse Commute (JARC) programs. The New Starts program is a discretionary grant program for public transportation capital projects. The JARC program is intended to improve the mobility of low-income individuals seeking work. SAFETEA-LU authorized $8.6 billion for these two programs. The Federal Transit Administration (FTA) manages both of these programs. This testimony discusses GAO's preliminary findings on the (1) changes SAFETEA-LU made to the New Starts program, (2) changes SAFETEA-LU made to the JARC program, and (3) issues that may be important as FTA moves forward with implementing the act. To address these objectives, GAO interviewed FTA officials, sponsors of New Starts projects, and representatives from industry associations and reviewed FTA's guidance on the New Starts and JARC programs and federal statutes, among other things.

What GAO Found

The changes SAFETEA-LU made to the New Starts program range from establishing the Small Starts program to introducing new evaluation criteria. FTA has taken some initial steps in implementing SAFETEA-LU changes, including issuing an Advanced Notice of Proposed Rule Making (ANPRM) for the Small Starts program and guidance for the New Starts program in January 2006. The Small Starts program is intended to offer small projects an expedited and streamlined application and review process; however, the transit community has questioned whether the Small Starts program, as outlined in the ANPRM, would provide such a process. FTA's guidance for the New Starts program identified and sought public input on possible changes to the program that would affect traditional New Starts projects, or large starts, such as revising the evaluation process to incorporate the new criteria identified by SAFETEA-LU. SAFETEA-LU also made a number of changes to the JARC program. One key change was to change JARC from a discretionary to a formula-based program, which provides funds to states and large urbanized areas for JARC projects. Other SAFETEA-LU changes include allowing JARC recipients to use a portion of funds for planning activities and removing a limit on the amount of funds available for reverse commute projects. To implement these changes, FTA solicited comments and input through public listening sessions and program notices. FTA has released interim guidance for fiscal year 2006, is currently developing draft final guidance for the JARC program, and plans to issue final guidance later this year. GAO's past work suggests that transparency, communication, and accountability issues will be important as FTA moves forward in implementing SAFETEA-LU changes to the New Starts and JARC programs. Since 1998, GAO has issued numerous reports on these programs, and many of the reports contained recommendations to FTA on ways to improve the implementation of these programs. For example, GAO has reported that FTA could increase the transparency of the New Starts program by obtaining public input on proposed policy changes before they are implemented. SAFETEA-LU addressed some of these issues, and FTA has also taken steps to resolve some of them. For example, SAFETEA-LU requires FTA to publish for notice and comment any proposals that make significant changes to the New Starts program. Nevertheless, given the number of changes that are being made to both programs, continued focus on efforts to improve transparency, communication, and accountability will be important. FTA officials provided technical comments on a draft of this testimony, which were incorporated where appropriate.