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This file contains materials regarding mass transit, and includes much about Detroit and Fort Lauderdale.
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Mass Transit (3)
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This file contains materials regarding mass transit, and includes much about Detroit and Fort Lauderdale.
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James M. Cannon Files (Ford Administration)
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The original documents are located in Box 21, folder "Mass Transit (3)" of the James M.
Cannon Files at the Gerald R. Ford Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
Digitized from Box 21 of the James M. Cannon Files at the Gerald R. Ford Presidential. Library
Trans
THE WHITE HOUSE
WASHINGTON
November 29, 1976
File
MEMORANDUM TO JIM LYNN
FROM:
JIM CANNON
SUBJECT:
Detroit Mass Transit Decision
During the budget discussion on Saturday, the question
came up of the budget implications of the Detroit Transit
decision.
At Tab A is Secretary Coleman's proposal.
At Tab B is the Domestic Council decision paper which
went to the President clearly explaining the budget
implications.
At Tab C is Paul O'Neill's comment explaining the program
and budgetary implications.
At Tab D is the President's decision.
At Tab E is the Department of Transportation's statement
about the Detroit Transit decision.
In brief, it appears that no public commitment was made
beyond the Detroit Transit decision.
FORD GRAL
FORM
/
of
INVORTATION
THE SECRETARY OF TRANSPORTATION
WASHINGTON, D.C. 20590
SINTES
OF
October 9, 1976
MEMORANDUM TO:
The President
SUBJECT:
Detroit Transit Proposal
Background
Detroit has been working for several years with the
Department's Urban Mass Transportation Administration (UMTA)
to develop an improved transit program. A new urgency has
been added to that work as a result of civic unrest in the
City, and Governor Milliken is now actively involved in
pressing the City's case for Federal support.
The State and the City are jointly seeking a Federal commit-
ment in principle to support a coordinated package of transit
improvements consisting of bus service on freeways and
arterials, commuter rail improvements, a two-mile "people
mover" system downtown (linking the Renaissance Center to
other key focal points), and a new rapid transit system of
up to 20 miles. They are currently developing the cost-
effectiveness analysis of transit alternatives which we re-
quire béfore we can make any specific commitments, but that
will not be complete until January 1977.
The progress of this work has been punctuated by increasing
unrest in the City--the riots in Cobo Hall, problems with
teenage gangs, crime and terror incidents on city buses and
freeways. The Governor has taken the unprecedented step of
assigning State Police to patrol the expressways during rush
hours to protect motorists. Both he and the Mayor report
that this series of events has seriously shaken private
business confidence in the revival of the City, and stymied
new downtown investment. They strongly feel that the City
urgently needs an expression of specific commitment by some
outside force-some ray of hope--before a new round of busi-
ness and residential flight is triggered. They see a Federal
transit commitment as the only significant prospect in the
offing.
2
Three weeks ago I told the Governor that no such Federal'
commitment could be made unless non-Federal matching funds
were committed. He immediately began legislative action
and obtained, on September 30, legislative approval of a
$220 million State transit funding package. This package
includes additional automobile license plate fees and
vehicle title transfer taxes to be paid in suburban counties
around Detroit--an indication that the State is willing to
take difficult political steps in the face of this crisis.
The ball is now back in our court. The Governor and others
in Michigan are pressing hard for some indication of Federal
response, now that they have completed the action which I
had indicated was needed. Not to respond now could be
embarrassing to the Administration and could provoke a poli-
tical attack from the Mayor and others. I believe, however,
that this situation presents us with the opportunity to go
on the offensive with a decisive expression of concern for
key American cities. This issue needs to be approached as
an urban policy issue, and not just a transit investment
decision.
Proposal
I propose a response which will demonstrate Administration
and Presidential leadership by taking action to express con-
cern for declining central cities in a hard-nosed way, and
in a way which does not unbalance our budget and tax postures.
The policy messages I believe we can communicate in this effort
are the following:
1. The key to city revival lies in stimulus to private
investment and private job creation, which in turn
creates a larger tax base through which a city can
better deal with its own problems;
2. This Administration will help cities that demonstrate
commitment to deal with their own problems; and
3. We will require a partnership approach among all
levels of government and the private sector.
Specifically, I propose to announce within the next two weeks
a $600 million conditional commitment in principle of funds
to Detroit for transit improvements. For this commitment to
be triggered into actual grants, the transit effort will have
to be made part of a major community development and city
building effort by the State, City, and Federal governments
and the private sector. Specifically, we must have commit-
ments that:
3
any transit construction will be carried out
with union cooperation and in such a way as to
provide skill training and jobs for substantial
numbers of unemployed city youth who are at the
heart of the problem of urban unrest;
the private sector will make new investment
commitments, on at least a dollar for dollar
basis with the Federal Government's transit
grant, for office, commercial, and residential
development around proposed transit routes and
stations; and
--State and local governments will make necessary
commitments for supporting infrastructure and
will assure the provision of public services
which will enhance the prospects for private
investment.
In this way, a transit commitment becomes a rallying point
for an entire program in which all sectors can join.
Other Federal Departments- HUD and Commerce (through the
Economic Development Administration) --could also be brought
into this package. An announcement could be handled in any
one of several ways--perhaps after a White House meeting
sought by Governor Milliken, Mayor Young, the automobile
company heads, unions, and others. You could be directly
involved, or the actual announcement could be handled at
the Cabinet level.
Budget Impact
The budget impact of a major transit commitment such as this
is delayed. We would not have significant obligations until
FY 1978, and outlay impacts would be strung out over a few
years beginning in FY 1979 and 1980. However, there is no
doubt that such a step would create pressures from some other
cities, notably Los Angeles which is well along in preparing
a comprehensive transit package.
However, compared to almost any other urban program initiative,
transit grants can be managed and limited. They are on a
discretionary basis, not formula allocated, and very few cities
can begin to justify rail transit development. In other words,
we are talking about a few major cities in a delayed and
FOR
4
strung-out time frame, not all medium and large cities. I
believe, also, that the UMTA program budget is being managed
in a very moderate way. We have rejected major grant appli-
cations in Denver and Dayton. We have cut programs in half
in New Jersey (PATH) and Buffalo. We require grantees to
enter into contracts which put a fixed ceiling on the Federal
funding and commit local resources to be used to complete the
project in the case of any cost overruns. I have exacted
commitments from contractors and unions that there will be no
strikes during the course of construction. You are not dealing
with a runaway program here.
At the same time, UMTA program initiatives have been treated
favorably by the press (see attached New York Times editorial)
and represent visible and important stimulants to city economics.
We have made a number of major UMTA commitments to central cities
within the last two years (see attachment), so there can be no
allegation of special favoritism to Detroit.
In order to accommodate the initiative I am proposing, it will
be necessary to accelerate UMTA commitments of funds already
authorized. As one of your first major acts as President, you
signed the major National Mass Transportation Assistance Act
in 1974, committing $11.8 billion over the six years from
FY 1975 to FY 1980. Of that amount, $7.1 billion was for dis-
cretionary capital grants. I propose now to permit UMTA to
spend out that capital authorization in five rather than six
years, thereby requiring an agreement by you to seek new
authorizations for FY 1980 and beyond. We can credibly take
the position that, by the time these added authorizations and
outlays for FY 1980 come on line, they can be absorbed by cuts
elsewhere or by new revenues.
The time for us to announce such an intention is soon. I am
addressing the annual meeting of the American Public Transit
Association on October 20, 1976 and would like to do so then.
In this manner we will be taking the offensive, not waiting
for Congressional action. Both the Senate and House are
planning to take up the UMTA legislation next year and will
probably add substantial funding to the UMTA program-- I be-
lieve that we should capture that issue by presenting an
effective Administration funding proposal.
Bie
William T. Coleman, Jr.
Attachments
FORD
ATTACHMENT
($$ in millions)
1.
Major UMTA rail transit construction and rehabili-
tation commitments beginning in FY 1975:
Atlanta
$800
Baltimore
$500
Boston
$200 (Interstate transfers)
Buffalo
*
$269
New York City
$500
Northern New
$470
Jersey
Philadelphia
$240
2. Major UMTA bus and busway commitments since FY 1975:
Denver
$200
Seattle
$124
3. Detroit ranks 5th in size among urbanized areas, but
12th in amount of UMTA grants through FY 1976.
FORD
Sic Transit
The pleasures of urban life are not limited to the
availability of sophisticated culsine, to rich options In
the arts or to opportunities 10 encounter cultivated
minds and sensibilities. An urban joy can be as simple
as taking a small hoy to Concy Island on the old Sea
Beach line and choosing to return to Manhattan on the
F train because of its bright, quict, new cars and the
view It affords of the Verrazano-Narrows Bridge before
it scuttles into a tunnel for the long serious journey
under Brooklyn.
Secretary of Transportation William T. Coleman Jr.
clearly understands such things and is also aware of
the additional fact that the vitality of any city depends,
in large measure, on whether its people are able to
move through it efficiently and in reasonable comfort.
He announced the approval last week of five mass
transit grants totaling $340 million to major cities to
support such activities as subway construction, acqui-
sition of buses and improvement of existing equipment.
Those grants, which included $66.7 million for New York
City, bring the Department of Transportation's mass
transit aid for this fiscal year to $1.5 billion.
Next to the $70 billion the nation has spent over
the years on its more than 40,000 miles of interstate
highways, that amount may seem minuscule, but com-
pared with the $133 million the Federal Government
allocated to mass transit just six years ago, it is
significant. Since 1970, the curve of Federal mass transit
expenditures has climbed steadily. Moreover, cities now
have the option of diverting some highway money to
mass transit purposes, and a number of mayors have
demonstrated the wisdom and courage to do so.
If these straws in the wind indicate that the nation
is finally beginning to free itself from the grip of the
highway lobby, then they are most welcome. The
automatic trust fund device for funding highways has
not only contributed to the noxious urban atmosphere,
but to the malaise in the railroad industry and to the
strangulation of the cities as well. From 1945 to 1970,
the nation's investment in highways amounted to more
than $150 billion and, during that time, less than 20
miles of subway were built in the United States.
Secretary Coleman put the conflict well the other
day when he said,
the city that is not accessible
cannot serve its people.
For our urban centers to
survive and thrive, we must have transportation systems
that circulate people in and through our cities in com-
fort and convenience.
Highways alone, where buses
with 40 passengers must compete with the one-occupant
car for the same piece of pavement. will not do the job."
While there is little chance that America's remance
with the internal combustion engine will soon fade,
there is currently a large question about whether the
nation's cities can remain viable. Policies which seck
GERALD FORD LIBRARY
to redress the investment imbalance of the past RTC
nothing so much as they are efforts to conserve our
cities and investments in our future.
B
THE WHITE HOUSE
INFORMATION
WASHINGTON
October 16, 1976
MEMROANDUM FOR THE PRESIDENT
FROM:
JIM CANNON
SUBJECT:
Secretary Coleman's Detroit Transit Proposal
Within the next few days, you will be meeting with Governor
Milliken and Secretary Coleman. One of the issues they will
wish to talk with you about is Secretary Coleman's proposal
for mass transit in Detroit. A copy of his proposal to you
is attached at Tab A. This proposal has been circulated to
your Senior Staff for preliminary review. Jim Lynn's comments
are attached at Tab B; those of your Senior Staff are at
Tab C.
SUMMARY OF PROPOSAL
Within the next two weeks, Secretary Coleman proposes to
announce a $600 million Federal commitment in principle for
Detroit transit improvements. He proposes to deal with this
question as an urban policy issue, not just a transportation
investment decision. For the commitment to be triggered
into actual grants, he would require major community development
and city building efforts by the State, City, and Federal
governments as well as the private sector.
The State has already taken some action: on September 30,
Governor Milliken obtained legislative approval of a $220
million State transit funding package, including additional
automobile license plate fees and vehicle transfer taxes.
In order to go forward, Secretary Coleman would require
committments that:
--
Transit construction provide skill training and
jobs for unemployed city youths, in cooperation
with local unions.
The pri ate sector match the Feden 1 grant with
equal investments in commercial and residential
development near transit routes; and
State and local governments commit to providing
services to enhance the chances for private investment.
BUDGET IMPLICATIONS
In 1974, you signed the National Mass Transportation Assistance
Act, committing $11.8 billion over six years, FY 1975 through
FY 1980, including $7.1 billion for discretionary capital
grants. The Detroit grant, if made, would create pressures
from other cities, notably Los Angeles, which are nearing
completion of comprehensive transit packages of their own,
and are aware that UMTA's discretaionary funds are running
out.
Secretary Coleman believes the proposal would not have
significent financial obligations until FY 1978, and outlay
impacts would be spread over a number of years, beginning in
FY 1979.
He proposes that UMTA be permitted to spend its capital
authorization in five, rather than six years, thereby re-
quiring your approval to seek new authorizations for FY 1980
and beyond. He would like to use the occasion of his address
to the American Public Transit Association Convention in San
Francisco on Wednesday, October 20, to announce this decision.
Jim Lynn strongly recommends against this proposal at this
time. He urges that:
--
The Detroit committment will exceed planned levels
and force a need for additional budget authority;
--
Decision of this issue may pre-empt your options
as you review 1978 budget requests;
--
Major projects, such as Detroit, have built in
operating subsidy requirements which have not been
fully analyzed or weighed.
RECOMMENDATIONS
Jack Marsh, Paul MacAvoy and Bill Seidman agree with OMB.
FORD
3
I recommend that you not make a decision on the Detroit
proposal at this time. Secretary Coleman should be directed
to develop a detailed analysis and review of this option
and other responsible alternatives. He should also be
asked to present a paper which more thoroughly discusses
and presents the methods by which transportation funds
can be used to prompt positive action by local officials
to revive urban areas.
FORD
C
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
MEMORANDUM FOR: THE PRESIDENT
FROM:
Paul O'Neill
SUBJECT:
OMB Comments on Secretary Coleman's Detroit
Proposal - Request for Administration Com-
mitment to Expand the Mass Transit Act
This memorandum is prompted by Secretary Coleman's October 9
proposal to you that the Federal Government should immediately
commit itself to a $600 million transit program in Detroit.
The commitment would pre-empt a detailed analysis of Detroit
alternatives which is required by DOT, and which is due in
early 1977. This and similar major proposals (Los Angeles,
Honolulu, Chicago, others) would, if approved, require annual
funding levels substantially higher than those currently
authorized through 1980, and impose funding requirements
well beyond 1980. The Secretary accordingly also wants
approval to announce next week at a convention of the
American Public Transit Association (APTA) that the
Administration will seek expansion and extention of mass
transit legislation.
OMB believe that Secretary Coleman's Detroit memo greatly
understates the budgetary ramifications and overstates the
benefits of the proposal, and OMB strongly recommends that
Secretary Coleman be advised not to make this or any major
rapid transit commitments or announcements for at least
three months so that such decisions do not pre-empt your
options as you review 1978 budget requests. Specifically,
if you meet with Governor Milliken on Monday, no commitment
should be made other than that Detroit's proposals are
under review and will receive careful consideration. OMB
also recommends that no long term funding decisions be implied
at the APTA conference. The following arguments support these
recommendations:
Background
- Transit is not a panacea: While Secretary Coleman is correct
when he states that some transit initiatives have been treated
favorably by the press, an increasingly impressive array FORD
2
independent analyses are making devastating arguments
against new major rapid transit projects. The BART
system in San Francisco, for example, has had marginal
effectiveness, carries only 2-3 percent of the trips
in the Bay area, over 40 percent of its riders pre-
viously rode buses for the same trip, it only covers
one third of its operating costs from the farebox,
and has very little impact on land use. It principally
benefits suburban commuters, not inner city residents
in the Bay Area.
- Funds do not exist: DOT is beginning its third year of
the six-year transit funding authority which you signed
in November 1974. While funds for 1977-1980 are tech-
nically unobligated, DOT has already made commitments
or planned how it might use almost every dollar. Hence,
a commitment such as the one proposed would exceed
planned levels and force a need for additional authority.
At a minimum, such proposals should receive the greatest
scrutiny possible and be compared with other competing
applications for transit funds.
- Pre-empts budget trade-offs: As you know from budget
previews, decisions which you have to face for 1978, 1979 and
1980 will be the toughest any President has had to face for
years. The mass transit budget request for 1978 and the plan
which Secretary Coleman has outlined would add $1 billion
in obligations and $500 million in outlays to 1979 estimates
above and beyond any of the targets or threats which you
have already seen. DOT's overall FY 1978 request alone
is already $3 billion above planning figures for obligations,
and $1 billion above outlay targets. Recent transportation
actions have added several billion dollars over your plan-
ned levels for 1976 and 1977 (e.g., ConRail, Northeast
Corridor, airport grants, highway grants). Transportation
budget threats for the future include not only transit,
but also more for highways and railroads, and possibly
aircraft noise retrofit. The DOT proposal seeks approval
of an unspecified increase and extension to the transit
program. What DOT actually has in mind is a transit
program by 1980 well over a billion dollars higher than
that assumed in your target estimates You should have
the opportunity to examine your options in a broader
context.
- Not based on analysis: Secretary Coleman argues that the
UMTA program carefully controls which projects it approves.
But that control only exists to the extent that proposals
3
are subjected to intense scrutiny by UMTA - scrutiny
which is designed to help ration UMTA's funds and
prevent the serious planning problems that occurred
with BART, and with METRO here. Approving Detroit
in advance of this review would undermine the value
of normal UMTA analysis - analysis which is more than
likely to reject rail rapid transit options in Detroit
in favor of high quality express bus service on Detroit's
excellent freeway network. Specifically, the $600 million
mentioned for Detroit is an awkward amount. It is much
more than is needed for buses, a downtown people mover
and commuter railroad improvements, but is too low for
a new rapid transit scheme.
- Timing: There is absolutely no need to make such a
decision at this time. The unrest problems which the
Secretary discusses would remain unaffected by this
decision for years, even assuming that a transit
initiative would have some bearing on the issue.
- Long-term problems: Secretary Coleman's speech and
meetings in Detroit last month are likely to be mis-
interpreted as an Administration promise of $600
million to that city. They have already prematurely
triggered legislative action by the Governor. UMTA is
presently involved in several multi-hundred million
dollar projects (Atlanta, Baltimore) which received
support in 1972 pre-election speeches by former
Secretary Volpe. It took years for DOT to salvage
some order out of the chaos created by those speeches,
and I think we should profit by those past errors and
approach this proposal far more carefully.
- Operating Subsidies: Despite the superficial appeal of
mass transit to the NY Times, transit is a program whose
objectives and effectiveness have not been seriously
examined for almost a decade. The major projects -
particularly the large ones like Detroit's proposal -
have extremely low benefit/cost ratios and - a point
that is too often overlooked - have enormous built-in
operating subsidy requirements which are never given
sufficient weight at the time of the investment decisions.
BART was to have been self-supporting, but only covers
a third of its costs from the farebox, METRO was to
have been self-supporting, but it too requires subsidies.
I believe Detroit would be particularly hard pressed to
cover major annual deficits of rail transit on top of
its bus deficits.
FORD
4
Recommendation: The Administration should go slow on
Detroit and on mass transit at this time. More orderly
decisions can be reached during the next three months.
In the meantime, there are several positive actions the
Federal Government can do far short of promising $600
million of money that we don't have for a project that
barely exists on paper. For example, the downtown people
mover proposal which Detroit submitted to UMTA this summer
in competition with 38 other cities is reportedly very close
to being one of three legitimate finalists. This is a $50-
100 million program that has been analyzed and for which
funds have already been identified.
With respect to the Secretary's request to announce a legislative
proposal at the transit convention next week, OMB strongly be-
lieves that it is in your best overall interests that no such
commitment be made at that time. You need to have options
prepared and evaluated on this issue, and the costs and benefits
of this initiative compared to other initiatives. As an alter-
native, OMB strongly recommends that the Secretary address only
the very major transit accomplishments which your Administration
has already made.
FORD
D
ORD
THE WHITE HOUSE Upone
WASHINGTON
October 18, 1976
Judy Hom
The L'e
ADMINISTRATIVELY CONFIDENTIAL
In
MEMORANDUM FOR:
JIM CANNON
FROM:
JIM CONNOR JEE
SUBJECT:
Secretary Coleman's Detroit
Transit Proposal
The President reviewed your memorandum of October 16 and
made the following notation:
"I approve of Secretary Coleman's proposal and he
has my OK to proceed with speech. "
Please follow-up with appropriate action.
cc: Dick Cheney
CERALD SALD
E
OUTLINE OF REMARKS PREPARED FOR DELIVERY BY
SECRETARY OF TRANSPORTATION WILLIAM T. COLEMAN, JR.
,
TO THE AMERICAN PUBLIC TRANSIT ASSOCIATION,
SAN FRANCISCO, CALIFORNIA, 00 OBER 20, 1976.
FORD & LIBRARY GERALD
I. OPENING
-- I AM VERY HAPPY TO BE HERE WITH YOU TODAY, AND I
WANT TO THANK BILL STOKES FOR THE INVITATION TO
PARTICIPATE IN YOUR ANNUAL MEETING.
2
-- DURING THE COURSE OF THE PAST 18 MONTHS, I HAVE
ENJOYED A STRONG AND, I BELIEVE, MUTUALLY REWARDING
RELATIONSHIP WITH APTA -- AND I LOOK FORWARD TO
CONTINUING THAT RELATIONSHIP.
3
-- IT'S A RELATIONSHIP DUILT ON PERFORMANCE AND
PROGRESS RATHER THAN PROMISES - -- AND I THINK
EVERYBODY IN THIS ROOM KNOWS THAT IN
TRANSPORTATION, PERFORMANCE IS THE ONLY THING
THAT REALLY COUNTS.
4
-- THUS, BEFORE I BEGIN MY REMARKS THIS MORNING --
IN WHICH I WANT TO REVIEW SOME OF THAT PERFORMANCE
WITH YOU -- I HAVE A COUPLE OF ANNOUNCEMENTS I
WANT TO MAKE.
GERALD R. R.FORD
5
II. ANNOUNCEMENTS
1) FIRST, I MET WITH PRESIDENT FORD AT THE WHITE HOUSE ON
SEVERAL OCCASIONS IN THE LAST THREE MONTHS ON URBAN TRANSIT
AND THE LAST MEETING WAS JUST THIS PAST WEEKEND. AFTER A
THOROUGH REVIEW OF THE CURRENT FUNDING COMMITMENTS AND NEEDS
IN URBAN MASS TRANSPORTATION NATIONALLY, THE PRESIDENT HAS
ASKED ME TO ANNOUNCE THAT HE PLANS TO SUBMIT LEGISLATION TO
THE CONGRESS TO EXTEND AND INCREASE THE CAPITAL FUNDING
PROVISIONS OF THE NAT'L MASS TRANS. ASSISTANCE ACT OF 1974.
6
-- AS YOU ALL KNOW, THE FIRST MAJOR DOMESTIC LEGISLATION WHICH
PRESIDENT FORD TOOK AN ACTIVE ROLE IN SHAPING AND SECURING
CONGRESSIONAL APPROVAL WAS THE NATIONAL MASS TRANSPORTATION
ASSISTANCE ACT OF 1974. THIS LANDMARK LEGISLATION PROVIDED
A SIX-YEAR, $11.8 BILLION PROGRAM FOR PUBLIC TRANSPORTATION
IMPROVEMENTS AND PERMITTED STATE AND LOCAL OFFICIALS THE
TO USE A PORTION OF THIS ASSISTANCE TO MEET OPERATING
REQUIREMENTS.
GERALD FORD LIBRARY
7
-- CONSISTENT WITH THIS ADMINISTRATION'S BROAD EFFORTS TO
ENSURE THAT ALL TAX DOLLARS ARE USED EFFECTIVELY, THE
DEPARTMENT HAS ACTED TO MAKE SURE THAT THIS SIZABLE
PUBLIC COMMITMENT PRODUCED THE MAXIMUM RETURN FOR THE
DOLLAR INVESTED.
8
-- AS ONE EXAMPLE OF THIS CONCERN, WE HAVE INSTITUTED A
COOPERATIVE PROCESS TO ENSURE THAT POTENTIAL APPLICANTS
CAREFULLY EXAMINE THE COSTS AND BENEFITS, AS WELL AS THE
COMMUNITY AND SOCIAL DEVELOPMENT IMPACTS, OF ALL PUBLIC
TRANSPORTATION INVESTMENT ALTERNATIVES IN CONJUNCTION WITH
ANY APPLICATION FOR MAJOR FEDERAL DISCRETIONARY ASSISTANCE.
9
-- WE HAVE ALSO STARTED TO STRESS THAT LOCAL GOVERNMENT
OFFICIALS AND INDIVIDUAL CITIZENS MUST FOCUS ON THE NEED
TO FINANCE THE OPERATING COSTS WHICH WILL FLOW FROM PUBLIC
TRANSPORTATION CAPITAL INVESTMENTS. WE HAVE ALSO DEVELOPED
THE PRINCIPLE OF FIXED FUNDING.
FORD is LIBRARY GERALD
10
-- WE BELIEVE THESE STEPS HAVE PRODUCED, AND WILL CONTINUE
TO PRODUCE, SOUND PUBLIC TRANSPORTATION INVESTMENTS IN
OUR NATION'S URBAN AND RURAL AREAS.
-- AS PRESIDENT FORD CLEARLY INDICATED LAST WEEK, WE BELIEVE
THAT WELL-CONCEIVED TRANSPORTATION INVESTMENTS THROUGH
EXISTING FEDERAL PROGRAMS CAN PLAY A KEY ROLE IN THE
REVITALIZATION OF OUR URBAN CENTERS.
11
-- FURTHERMORE, WE HAVE A GROWING APPRECIATION OF THE
IMPORTANCE THAT EFFECTIVE PUBLIC TRANSPORTATION SYSTEMS
CAN PLAY IN HELPING OUR RURAL CITIZENS LEAD MORE
PRODUCTIVE AND ENJOYABLE LIVES.
-- IT IS IN THIS CONTEXT THAT THE DEPARTMENT HAS BEEN CAREFUL
REVIEWING THE COMMITMENTS FOR SOUND MASS TRANSIT PROJECTS
AGAINST CAPITAL RESOURCES AVAILABLE UNDER SECTION 3 OF THi
MASS TRANSIT ACT.
FORD & LIBRARY 07V139
12
-- OUR ANALYSIS INDICATES THAT THE FUNDS TO ASSIST
WELL-JUSTIFIED CAPITAL PROJECTS WILL BE EXHAUSTED BY
THE END OF FY 1979, RATHER THAN THE END OF FY 1980, AS
ENVISIONED BY CURRENT LEGISLATION.
FORD i LIBRARY GERALD
13
-- CONSEQUENTLY, THE ADMINISTRATION WILL SUBMIT LEGISLATION
NEXT YEAR TO CORRECT THIS SITUATION SO THAT THERE WILL BE
SUFFICIENT CAPITAL FUNDS AVAILABLE FOR THE FULL DURATION
THE CURRENT NMTA PROGRAM.
14
-- BY PROPOSING AND ACHIEVING ENACTMENT OF THIS INCREASED
AUTHORIZATION EARLY NEXT YEAR, WE WILL ENABLE STATE AND
LOCAL GOVERNMENTS TO PLAN AND TO IMPLEMENT IMPROVED PUBLIC
TRANSPORTATION PROGRAMS MORE EFFECTIVELY.
15
-- I BELIEVE OUR EFFORTS TO IMPROVE URBAN MASS TRANSIT, AND
TO INCREASE LOCAL OPTIONS IN MEETING TRANSPORTATION NEEDS,
HAVE PLAYED A KEY ROLE IN THE RESTORATION AND
REVITALIZATION OF OUR URBAN CENTERS.
FORD is LIBRARY GERALD
16
2) DETROIT IS A GOOD EXAMPLE OF ONE CITY THAT HAS MET THE
FEDERAL FUNDING REQUIREMENTS FOR MASS TRANSIT
ASSISTANCE, AND WHICH HAS DEMONSTRATED CLEARLY ITS
DEDICATION TO URBAN REVITALIZATION EFFORTS.
17
-- THUS, I WAS ABLE TO AMNOUNCE YESTERDAY -- IN A TELEPHONE
CONVERSATION WITH GOVERNOR MILLIKEN,
DETROIT MAYOR COLEMAN YOUNG AND OTHER STATE OFFICIALS --
OUR INTENTION TO COMMIT IN PRINCIPLE AN ADDITIONAL
$600 MILLION TO DETROIT FOR CONTINUED TRANSIT
IMPROVEMENTS IN THAT CITY.
18
-- THIS COMMITMENT IS CONTINGENT ALSO UPON A MATCHING
$600 MILLION INVESTMENT BY THE DETROIT BUSINESS
COMMUNITY IN ANY NUMBER OF URBAN RESTORATION
INITIATIVES UNDERWAY IN THAT CITY.
FORD & LIBRARY DERALD
19
-- AS YOU KNOW, THE ALTERNATIVES ANALYSIS STUDY FOR
DETROIT IS NOT YET COMPLETED, SO I CANNOT SAY WHETHER
THE FEDERAL FUNDS WILL BE USED TO HELP FINANCE HEAVY
RAIL, LIGHT RAIL OR SOME COMBINATION OF THE TWO.
HOWEVER, I FIRMLY BELIEVE THAT SUCH A DETERMINATION (
HOW TO BEST NEET THE NEEDS OF THE DETROIT AREA SHOULD
REST HEAVILY ON LOCAL DISCRETION.
-- NORTHERN NEW JERSEY EXPERIENCE
20
-- DETROIT UNDER THE LEADERSHIP OF MAYOR COLEMAN YOUNG AND
GOVERNOR BILL MILLIKEN, HAS DEMONSTRATED A FIRM COMMITMENT
TO DEAL WITH ITS OWN PROBLEMS ON A RATIONAL AND REALISTIC
DACIS
21
-- THUS, THIS ADMINISTRATION IS PROUD TO JOIN IN
PARTNERSHIP WITH THE CITIZENS OF DETROIT IN HELPING
TO PROVIDE NEEDED TRANSIT SERVICES, AND AT THE SAME
TIME, HELPING TO STIMULATE URBAN RENEWAL EFFORTS,
JOBS AND THE ECONOMY III THAT CITY.
FORD ABRART
22
III. THIS ADMINISTRATION HAS BEEN AT THE FOREFRONT OF RECOGNIZING
THE IMPORTANCE OF URBAN MASS TRANSPORTATION AS A CATALYST TO
THE SALVATION AND ECONOMIC REGENERATION OF THE URBAN COMMUNITY
-- IN THE YEARS FROM FISCAL 1962 THROUGH FISCAL 1976, A TOTAL
OF $6.9 BILLION IN TRANSIT FUNDING HAS BEEN AWARDED TO
CITIES, STATES AND LOCAL TRANSIT AUTHORITIES.
1
23
-- IT IS SIGNIFICANT, I BELIEVE, THAT OF THE $6.9 BILLION
TOTAL, $5.2 BILLION -- FULLY THREE-FOURTHS OF THE TOTAL
FEDERAL ALLOCATION -- HAS BEEN COMMITTED WITHIN THE LAST
FOUR YEARS ALONE.
24
-- WE HAVE STEPPED-UP OUR FEDERAL COMMITMENT TO MASS
TRANSIT FOR ONE BASIC REASON.
FORD & LIBRARY QERALD
25
-- VERY SIMPLY, WE REALIZE THAT IF OUR CITIES ARE TO BE
PRESERVED AND RESTORED TO THEIR FORMER POSITION AS
CENTERS OF COMMERCE AND CULTURE; IF THEY ARE TO BE
LIVABLE AS WELL AS ACCESSIBLE; IF WE ARE TO MEET THE
ENERGY AND ENVIRONMENTAL NEEDS, AS WELL AS THE
TRANSPORTATION NEEDS OF OUR COMMUNITIES -- THEN WE
MUST PROVIDE A VIABLE ALTERNATIVE TO THE CONTINUED
PROLIFERATION OF THE PRIVATE AUTOMOBILE.
26
-- THUS, I BELIEVE WE HAVE HELPED SIGNIFICANTLY THE
REVITALIZATION EFFORTS OF CITIES SUCH AS:
0 ATLANTA -- WHICH HAS RECEIVED A TOTAL FEDERAL
COMMITMENT OF NEARLY $900 MILLION FOR CONSTRUCTION
OF ITS NEW RAPID TRANSIT SYSTEM
FORD & LIBRARY GERALD
( BALTIMORE -- WHICH HAS RECEIVED $111 MILLION TO DATE;
C BUFFALO, NEW YORK -- TO WHICH WE HAVE COMMITTED
$269 MILLION. (THIS WAS THE FIRST COMMUNITY TO
SECURE A NO-STRIKE AGREEMENT PRIOR TO ITS REQUEST
FOR FUNDING.)
28
0 AND, AS I NOTED EARLIER, TO THE DENSELY POPULATED
NORTHERN NEW JERSEY AREA, INCLUDING NEWARK, WHERE
WE COMMITTED A TOTAL OF $400 MILLION IN FEDERAL
TRANSIT FUNDS.
-- IN ALL, MORE THAN 300 COMMUNITIES - -- LARGE AND SMALL --
APPLIED FOR AND RECEIVED FEDERAL MASS TRANSIT FUNDING
ASSISTANCE FROM THE DEPARTMENT OF TRANSPORTATION.
29
-- FEDERAL ASSISTANCE IS CONTINGENT UPON A STRONG LOCAL
COMMITMENT.
C MOREOVER, IN THE AREA OF 13(c), WE HAVE
TAKEN MAJOR STEPS, IN CONJUNCTION WITH THE
DEPARTMENT OF LABOR TO SIMPLIFY THE
ADMINISTRATION OF THESE AGREEMENTS.
FORD i LIBRARY GERALD
30
0 AFTER 12 YEARS EXPERIENCE WITH THE UMTA
PROGRAM WE KNOW THAT THE CHARACTERISTIC
RESULT OF UMTA GRANTS IS TO EXPAND, NOT TO
CONTRACT, THE LABOR FORCE INVOLVED IN MASS
TRANSPORTATION.
31
0 THE POTENTIAL FOR EMPLOYEE DISPLACEMENT
AND DISADVANTAGE AS THE RESULT OF MOST
UMTA GRANTS IS SLIGHT,
32
0 CHANGES IN 13(c) PROCEDURES WORKED OUT IN
COOPERATION WITH THE DEPARTMENT OF LABOR ARE
DESIGNED TO AVOID THE FRUSTRATION, AND REDUCE
THE RED-TAPE THAT SOMETIMES HAS BEEN ASSOCIATED
WITH THE CURRENT 13(c) CERTIFICATION PROCEDURES,
WHILE FULLY MAINTAINING THE PROTECTION OF
AFFECTED EMPLOYEES AS INTENDED BY THE LAW.
FORDO is LIBRARY GERALD
33
( THE CHANGES INCLUDE:
-- PUBLICATION OF WRITTEN GUIDELINES TO
ASSIST APPLICANTS IN THEIR UNDERSTANDING
OF THE DEPARTMENT OF LABOR'S CRITERIA
FOR MAKING THE LABOR PROTECTIVE
DETERMINATION
34
--- SETTING OF TIME LIMITS BY THE
SECRETARY OF LABOR WITHIN WHICH
BARGAINING ON PROTECTIVE ARRANGEMENTS
MUST BE CONCLUDED
(7
35
BERALD R.FORD LIBRARY
-- A PROCEDURE FOR MAKING A SINGLE
CERTIFICATION ON A MAJOR PROJECT THAT IS
ACCOMPLISHED IN STAGES OVER A PERIOD OF
SEVERAL YEARS AND FUNDED THROUGH
AMENDATORY GRANTS. FOR SUCH GRANTS THE
DEPARTMENT OF LABOR WILL, ON ITS OWN
INITIATIVE, APPLY THE SAME TERMS AND
36
-- ESTABLISHMENT OF CATEGORIES OF RECURRING
GRANTS FOR WHICH THE DEPARTMENT OF LABOR
WOULD CERTIFY ARRANGEMENTS WITHIN 30 DAYS,
UNLESS OBJECTIONS WERE MADE, BASED ON
EXISTING ARRANGEMENTS. THIS PROCEDURE
WILL APPLY TO CAPITAL GRANTS FOR VEHICLE
PURCHASE, RIGHT-OF-WAY REHABILITATION,
AND GRANTS THAT ARE PART OF SPECIFIED
MULTI-YEAR PROJECTS.
37.
0 STILL UNDER REVIEW IS THE ESTABLISHMENT OF
A SO-CALLED 13(c) NEGATIVE DECLARATION
PROCEDURE FOR GENERAL OPERATING ASSISTANCE
GRANTS.
FORD is LIBRARY 0ERALD
38
-- IF THIS CHANGE IS APPROVED, SUCH GRANTS
WOULD BE APPROVED WITHOUT A 13 (c)
LABOR PROTECTIVE CERTIFICATION, BASED ON
THE DETERMINATION THAT BY DEFINITION
THESE GRANTS DO NOT HAVE AN ADVERSE
IMPACT ON MASS TRANSPORTATION EMPLOYEES.
39
IIIA -- ALONG WITH SECRETARY CARLA HILLS AT HUD, AND
SECRETARY ELLIOT RICHARDSON AT COMMERCE, I AM PRIVILEGED
TO SERVE ON THE PRESIDENT'S COMMITTEE ON URBAN DEVELOPMENT
AND NEIGHBORHOOD REVITALIZATION.
40
GERALD R. FORD LIBRARY
-- SINCE THIS COMMITTEE WAS ESTABLISHED BY
PRESIDENT FORD LAST JUNE, WE HAVE VISITED NUMEROUS
CITIES AND MET WITH HUNDREDS OF MAYORS AND LOCAL
COMMUNITY LEADERS.
-- OUR TASK IS TO REVIEW CURRENT PROGRAMS AND INITIATIVES,
AND TO EXPLORE NEW AND BETTER MEANS OF PROVIDING
FEDERAL ASSISTANCE IN URBAN RESTORATION. EFFORTS.
41
-- THE EMPHASIS IS NOT, AS IT WAS 15 OR 20 YEARS AGO,
ON TEARING DOWN. RATHER, IT IS ON BUILDING UP AND
REBUILDING --- CITIES AND THEIR COMPONENT NEIGHBORHOODS.
-- IN A PERIOD OF SCARCE RESOURCES, BOTH NATURAL
AND FISCAL, IT DOESN'T MAKE SENSE TO THROW-AWAY
WHOLE ENGINBORHOODS WHEN THESE AREAS CAN BE
RESTORED AND PRESERVED.
42
--- SECRETARY HILLS HAS DONE AN OUTSTANDING JOB IN
FORMULATING AND PROMOTING THE URBAN HOMESTEADING
PROGRAM -- THAT PROGRAM WHICH ENABLES A PERSON
WITH LIMITED RESOURCES -- WHO MIGHT NOT OTHERWISE
BE ABLE TO AFFORD A HOUSE -- TO PURCHASE FOR AS
LITTLE AS $1 AN ABANDONED, HUD-FORECLOSED URBAN
PROPERTY, AND REHABILITATE IT.
FORD & LIBRARY QERALD
43
-- PROGRAMS SUCH AS THAT, ALONG WITH LOW INTEREST
LOANS AND NEIGHBORHOOD IMPROVEMENT GRANTS, ARE
ENABLING LOCAL COMMUNITIES, AND INDIVIDUALS WITH
INITIATIVE, TO JOIN ACTIVELY IN THE TURN-AROUND
OF URBAN AMERICA.
-- CERTAINLY. TRANSPORTATION IS CLEARLY ESSENTIAL
TO THAT GOAL.
44
IV. I BELIEVE, IN TRANSPORTATION OR IN ANY OTHER AREA OF DOMESTIC
CONSIDERATION, WE NEED TO BE REALISTIC. WE NEED TO ESTABLISH
OUR PRIORITIES AND OUR DIRECTION WITHIN THE ECONOMIC CONSTRAINTS
OF 1976.
-- MORE THAN ANYTHING, I WOULD LIKE TO STAND HERE TODAY AND
TELL YOU THAT THERE IS AN UNLIMITED AMOUNT OF MONEY --
ENOUGH TO MEET ALL OF THE TRANSPORTATION NEEDS OF THIS
NATION.
FORD & LIBRARY QERALD
45
-- I AM SURE SECRETARY HILLS WOULD LIKE TO SAY THE
SAME ABOUT HOUSING, AND SECRETARY MATTHEWS ABOUT
HEALTH AND EDUCATION NEEDS.
-- BUT I THINK WE MUST REALIZE THAT OUR PRESENT RATE OF
TAXATION IS ABOUT AS HIGH AS A FREE PEOPLE WILL WILLINGLY
60 IN PEACETIME -- AND FOR THE FIRST TIME III A GENERATION,
VE ARE AI PEACE.
46
-- THUS, WE ARE FACED WITH MAKING SOME TOUGH CHOICES -- NOT
SOFT PROMISES - -- ABOUT HOW WE ARE GOING TO SPEND OUR
FEDERAL BUDGET OF $395 BILLION.
-- AND BEYOND THAT, WE MUST DECIDE HOW TO GET THE MOST
OUT OF EVERY DOLLAR SPENT.
FORD & LIBRARY GERALD
1:7
-- THERE HAS BEEN A LOT OF TALK THROUGHOUT THIS
CAMPAIGN ABOUT MORALITY AND MORAL LEADERSHIP, BUT I
WOULD SUGGEST TO YOU THAT ANY POLITICIAN WHO TELLS YOU
THAT HE CAN MEET ALL OF THE PRESSING NEEDS OF THIS
NATION ON THE ONE HAND, AND BALANCE THE FEDERAL BUDGET
AND REDUCE THE NATIONAL DEBT ON THE OTHER --- IS LYJUG
OUTRIGHT TO THE AMERICAN PEOPLE.
48
-- IT DOESN'T TAKE A DEGREE IN ECONOMICS FROM HARVARD
TO KNOW THAT YOU CAN'T GRAB BOTH ENDS OF THE
RAINBOW AT THE SAME TIME.
-- MORAL LEADERSHIP MEANS, TO A LARGE EXTENT,
RESPONSIBLE LEADERSHIP -- AND I BELIEVE THAT JUST
LOOKING AT WHAT WE HAVE ACCOMPLISHED IN TRANSPORTATION
IN THE PAST TWO YEARS IS SOLID EVIDENCE OF RESPONSIBLE
LEADERSHIP ON THE PART OF PRESIDENT FORD.
QERALD R. FORD
43
-- DESPITE THE CONSTRAINTS OF A TIGHT BUDGET -- MADE EVEN
TIGHTER BY INFLATION AND PRODUCT SHORTAGES -- THIS
ADMINISTRATION HAS DONE MORE THAN ANY OTHER FOR OUR CITIES
AND AT THE SAME TIME, IT HAS ALLOWED OUR CITIES TO DO MORE
FOR THEMSELVES.
!
50
-- WE HAVE RETURNED MORE OF THE REAL DECISION-MAKING
POWER TO LOCAL COMMUNITIES - -- (REVENUE SHARING,
LOCAL DISCRETION).
-- WE HAVE INCREASED THE FLEXIBILITY OF LOCAL RESPONSES
TO LOCAL TRANSPORTATION PROBLEMS THROUGH THE INTERSTAT
TRANSFER PROVISION, WHICH ALLOWS LOCAL AUTHORITIES TO
DECIDE IF HIGHWAY FUNDS WOULD BE BETTER SPENT ON URBAN
51
-- WE HAVE BROADENED FEDERAL TRANSIT FUNDING TO COVER
OPERATING AS WELL AS CAPITAL ASSISTANCE; YET WE WILL
CONTINUE TO OPPOSE THE NEGLECT OF CAPITAL
IMPROVEMENTS FOR THE SAKE OF MEETING OPERATING
DEFICITS.
FORD LIBRARY
52
-- WE HAVE ENCOURAGED LONG-RANGE REGIONAL PLANNING
THROUGH METROPOLITAN PLANNING ORGANIZATIONS, BECAUSE
WE BELIEVE THAT ONLY BY PLANNING IN THIS
COORDINATED MANNER CAN THE LOCAL COMMUNITY BE BEST
SERVED.
53
-- AND WE HAVE BROUGHT THE SOUND BUSINESS PRACTICE
OF COST-BENEFIT ANALYSIS TO MASS TRANSIT,
ASSURING THAT BOTH FEDERAL AND LOCAL TAX DOLLARS
ARE SPENT IN THE MOST COST-EFFECTIVE WAY.
54
-- THESE ARE REAL, SOUND PROGRAMS WITH DIRECT AND LASTING
BENEFIT TO THE CITIES.
-- I DON'T THINK THE FORD ADMINISTRATION IS GETTING DUE
CREDIT FOR ITS EFFORTS IN THIS AREA.
FORO is LIBRARY QERALD
55
-- HOW MANY PEOPLE REALIZE, FOR INSTANCE, THAT OUT OF
A FEDERAL BUDGET OF $395 BILLION, FULLY 57 PERCENT --
OR $222 BILLION - IS BEING SPENT ON DOMESTIC,
PEOPLE-ORIENTED PROGRAMS AND SERVICES -- SUCH THINGS
AS EDUCATION, SOCIAL SERVICES, HOUSING, VETERANS
BENEFITS AND INCOME SECURITY PROGRAMS.
56
-- AT THE HEIGHT OF THE PROGRAMS OF THE GREAT SOCIETY
IN 1968, ONLY 38 PERCENT OF OUR NATIONAL BUDGET
WAS DEVOTED TO MEETING THESE NEEDS.
-- I THINK THE PUBLIC SHOULD KNOW THIS COMPARISON,
BUT THE PRESS HAS NOT SEEN FIT TO POINT THIS
OUT.
57
-- BUT I THINK THAT JUST AS WE SHOULD CONTINUE TO SUPPORT
PROGRAMS THAT WORK, AND THAT GIVE A FAVORABLE RETURN ON
THE TAX DOLLAR SPENT, WE MUST ALSO TAKE A HARD LOOK AT
THOSE PROGRAMS WHICH TAKE MORE FROM THE TAXPAYER THAN
THEY GIVE BACK IN BENEFITS OR SERVICES.
BERALD FORD VIBRARY
-- I HAVE BEEN EXTREMELY CRITICAL OF THE AMTRAK PROGRAM
IN THE PAST, FOR THIS REASON.
-- I THINK THAT ASIDE FROM A FEW DENSELY-POPULATED
CORRIDORS OUTSIDE OF THE NORTHEAST, (NEW YORK-
CLEVELAND-CHICAGO, FOR EXAMPLE, OR POSSIBLY
LOS ANGELES-TO-SAN FRANCISCO) WE SHOULD RE-EXAMINE
WHETHER FEDERALLY SUBSIDIZED RAIL SERVICE IS THE BEST
WAY TQ SPEND AVAILABLE FUNDS.
I
59
V. CONCLUSION
-- THESE ARE THE KINDS OF TOUGH DECISIONS WE FACE IN 1976
-- RHETORIC AND COUNTLESS PROMISES, WITH THEIR HIDDEN
PRICE TAGS AND SCANT FOUNDATION IN REALITY, ARE NOT
WHAT THIS NATION NEEDS.
& MARARY QERALD
60
-- WE NEED A PUBLIC SECTOR STRONG ENOUGH TO MAKE THE
TOUGH CHOICES, AND WE NEED A PRIVATE SECTOR THAT IS
STRONG AND INDEPENDENT ENOUGH TO FULFILL ITS VITAL
FUNCTION IN OUR FREE ENTERPRISE SYSTEM.
61
-- MOST IMPORTANTLY, WITH ONLY 13 DAYS LEFT BEFORE THE
NOVEMBER 2 ELECTION, WE NEED AN AMERICAN PUBLIC THAT IS
PERCEPTIVE ENOUGH TO TELL THE DIFFERENCE BETWEEN FACT
AND FANCY -- AND FAR-SIGHTED ENOUGH TO MAKE THE RIGHT
CHOICE ABOUT THE FUTURE DIRECTION OF THIS NATION. AND
THAT CHOICE, I BELIEVE, CAN ONLY BE TO CONTINUE THE
PROGRAMS AND PROGRESS OF THIS ADMINISTRATION.
FORD LIBRARY is GERALD
OF
DEPARTMENT
DEPARTMENT
DEPARTMENT OF
TRANSPORTATION
NEWS
UNITED STATES OF AMERICA
OFFICE OF THE SECRETARY
WASHINGTON, D.C. 20590
FOR IMMEDIATE RELEASE
Phone: (202) 426-4321
October 19, 1976
DOT R-49-76
FEDERAL SUPPORT GIVEN
DETROIT AREA TRANSIT
A commitment in principle of $600 million for mass transit
construction in the Metropolitan Detroit area was announced today
by Secretary of Transportation William T. Coleman, Jr.
The federal funds are to be matched by $220 million in
state funds, already approved by Governor Milliken, and are
contingent upon agreement by the Detroit business community to
invest $600 million in urban residential and commercial
development along the route of the ultimate transit system.
Secretary Coleman noted that an alternativesanalysis study for
Detroit has not yet been completed and it has not been determined
whether the area will be served by a heavy rail system, a light
rail system, buses on exclusive lanes, people movers or some
combination of these technologies.
Secretary Coleman said he is announcing the commitment of
funds at this time because of the prompt action of the Governor
and Michigan Legislature of enacting legislation to ensure state
and local support of mass transit improvement for the Detroit area.
"The determination of the type of system," Secretary Coleman
said, "should to as large an extent as possible be based on local
discretion as to how the funds can best meet the needs of the area.
"I congratulate the citizens of Metropolitan Detroit and the
State of Michigan on the strong leadership which has worked with us
consistently and has been instrumental in our decision in principle
to fund improved mass transit in Southeastern Michigan," the Secretary
said.
FORD
- more -
- 2 -
Other contingencies placed on the commitment in principle
by Secretary Coleman are that any transit construction will be
carried out with union cooperation in providing training and jobs
for unemployed youths, a major factor in Detroit's problem of urban
unrest; and that opportunities will be provided for minority contractors.
In regard to another matter, Secretary Coleman informed Governor
Milliken the Federal Highway Administration is examining the feasibility
of a system of emergency call boxes for installation on Michigan highways.
####
DEPARTMENT OF TRANSPORTATION
OFFICE OF THE SECRETARY
Washington, D.C. 20590
POSTAGE AND FEES PAID
DEPARTMENT OF
TRANSPORTATION
Official Business
DOT 518
U.S.MAIL
PENALTY FOR PRIVATE USE, $300
FIRST CLASS
FORD
KELEDICAN REVOLUTION
1276-1976
(10)
UPA-1
of 5
THE SECRETARY OF TRANSPORTATION
WASHINGTON, D.C. 20590
INVOICE
AMERICA
STATES
3
October 19, 1976
Honorable William G. Milliken
Governor
State of Michigan
Lansing, Michigan
Honorable Coleman A. Young
Mayor
City of Detroit
Detroit, Michigan
Dear Governor Milliken and Mayor Young:
I am writing to confirm the firm commitment the Department of
Transportation made to you today regarding Federal funding for
transit improvements in Detroit. Specifically, the Department
of Transportation, through the Urban Mass Transportation
Administration (UMTA), is committing in principle $600 million
out of the 1974 UMTA Act to a broad range of transit improve-
ments for the Detroit metropolitan area.
We are making this advance commitment importantly and primarily
because of the great public leadership which you and the State
legislature have demonstrated in recent weeks. You have acted
at a time of considerable urgency in Detroit and you have asked
us for an early response. Together, you have forged a consen-
sus of public officials and private sector leadership at the
State and local levels on the need for transit and urban
revitalization investments. You have committed $220 million
in State funding to support your resolve. You have made your
commitments out front as an expression of concern and support
for the future of the metropolitan area. You have asked for
our response now and it is in that spirit of commitment to and
confidence in the future of Detroit that I make this announce-
ment today.
As I have discussed with you, the commitment in principle re-
quires that certain conditions will have to be met:
1. The private sector will have to make new investment
commitments, on at least a dollar-for-dollar basis
with the Federal funds ($600 million), for new
office, commercial and residential development in
the city;
- 2 -
2. Building contractors, unions, and others must provide
assurances that any transit construction will be
carried out in a way that provides apprenticeship
opportunities, skilled training and jobs for substan-
tial numbers of unemployed city youth;
3. The transit authority and other potential grantees
should provide assurances that there will be signifi-
cant opportunities for the participation of minority-
owned enterprises in the execution of the program; and
4. State and local governments will need to make necessary
commitments for supporting infrastructure and public
services to enhance the prospects for successful pri-
vate investment and transit operation.
I know from our conversations that you feel that these condi-
tions are valid and important. I share your view that major
transit investments need to serve as a rallying point for an
entire program of urban revitalization in which all parties
can join. That commitment to urban preservation and revitali-
zation is at the heart of DOT's decision to proceed in this
manner in Detroit.
I note that the total value of the commitment to Detroit will
exceed $1.4 billion--$600 million Federal, $600 million private,
and $220 million in State matching funds.
Of course, we will have to await the completion of the alterna-
tives analysis work before we can collectively make judgments
about the appropriate rapid transit, light rail, express bus,
and people mover proposals, or some combination of those, which
are best for Detroit. We believe that these choices should
depend importantly on local conditions, but UMTA will assure
Federal requirements are met in this process.
Finally, I have asked the Federal Highway Administrator to
make a maximum effort, within his authority and funding, to
assist you in providing the Motorist Call Box System which you
seek to enhance security and safety on the freeways in Detroit.
FORD
-3-
I am hopeful that the kind of partnership approach I have
described will help to build the revitalized Detroit which
we all seek. I want to reiterate that it is State and
local initiative-- led by a concerned Governor and Mayor,
producing matching commitments from both State and local
governments and the business community--which has resulted
in this Federal commitment.
FORD T
OF
DEPARTMENT
THE SECRETARY OF TRANSPORTATION
WASHINGTON, D.C. 20590
UNITED STATES OF AMERICA
October 19, 1976
Honorable William G. Milliken
Governor
State of Michigan
Lansing, Michigan
Honorable Coleman A. Young
Mayor
City of Detroit
Detroit, Michigan
Dear Governor Milliken and Mayor Young:
I am writing to confirm the firm commitment the Department
of Transportation made to you today regarding Federal funding
for transit improvements in Detroit. Specifically, the
Department of Transportation, through the Urban Mass
Transportation Administration (UMTA), is committing in
principle $600 million out of the 1974 UMTAct to a broad
range of transit improvements for the Detroit metropolitan
area.
We are making this advance commitment importantly and primarily
because of the great public leadership which you and the State
legislature have demonstrated in recent weeks. You have acted
at a time of considerable urgency in Detroit and you have asked
us for an early response. Together, you have forged a con-
sensus of public officials and private sector leadership at
the State and local levels on the need for transit and urban
revitalization investments. You have committed $220 million
in State funding to support your resolve. You have made your
commitments out front as an expression of concern and support
for the future of the metropolitan area. You have asked for
our response now and it is in that spirit of commitment to
and confidence in the future of Detroit that I make this
announcement today.
As I have discussed with you, the commitment in principle
requires that certain conditions will have to be met:
1. The private sector will have to make new investment
commitments, on at least a dollar-for-dollar basis
with the Federal funds ($600 million), for new
offices, commercial and residential development in
the city;
-2-
2. Building contractors, unions, and others must
provide assurances that any transit construction
will be carried out in a way that provides
apprenticeship opportunities, skilled training
and jobs for substantial numbers of unemployed
city youth;
3. The transit authority and other potential grantees
should provide assurances that there will be
significant opportunities for the participation
of minority-owned enterprises in the execution of
the program; and
4.
State and local governments will need to make
necessary commitments for supporting infrastructure
and public services to enhance the prospects for
successful private investment and transit operation.
I know from our conversations that you feel that these condi-
tions are valid and important. I share your view that major
transit investments need to serve as a rallying point for an
entire program of urban revitalization in which all parties
can join. That commitment to urban preservation and revitali-
zation is at the heart of DOT's decision to proceed in this
manner in Detroit.
I note that the total value of the commitment to Detroit will
exceed $1.4 billion--$600 million Federal, $600 million private,
and $220 million in State matching funds.
Of course, we will have to wait the completion of the alterna-
tives analysis work before we can collectively make judgments
about the appropriate rapid transit, light rail, express bus,
and people mover proposals, or some combination of those, which
are best for Detroit. We believe that their choices should de-
pend importantly on local conditions, but UMTA will assure that
Federal requirements are met in this process.
Finally, I have asked the Federal Highway Administrator to make
a maximum effort, within his authority and funding, to assist
you in providing the Motorist Call Box System which you seek
to enhance security and safety on the freeways in Detroit.
-3-
I am hopeful that the kind of partnership approach I have
described will help to build the revitalized Detroit which
we all seek. I want to reiterate that it is State and
local initiative- led by a concerned Governor and Mayor,
producing matching commitments from both State and local
governments and the business community--which has resulted
in this Federal commitment.
R.FORD
OF
DEPARTMENT
DEPARTMENT OF
TRANSPORTATION
NEWS
AMERICA UNITED STATES of
OFFICE OF THE SECRETARY
WASHINGTON, D.C. 20590
FOR IMMEDIATE RELEASE
Phone: (202) 426-4321
October 19, 1976
DOT R-49-76
FEDERAL SUPPORT GIVEN
DETROIT AREA TRANSIT
A commitment in principle of $600 million for mass transit
construction in the Metropolitan Detroit area was announced today
by Secretary of Transportation William T. Coleman, Jr.
The federal funds are to be matched by $220 million in
state funds, already approved by Governor Milliken, and are
contingent upon agreement by the Detroit business community to
invest $600 million in urban residential and commercial
development along the route of the ultimate transit system.
Secretary Coleman noted that an alternativesanalysis study for
Detroit has not yet been completed and it has not been determined
whether the area will be served by a heavy rail system, a light
rail system, buses on exclusive lanes, people movers or some
combination of these technologies.
Secretary Coleman said he is announcing the commitment of
funds at this time because of the prompt action of the Governor
and Michigan Legislature of enacting legislation to ensure state
and local support of mass transit improvement for the Detroit area.
"The determination of the type of system," Secretary Coleman
said, "should to as large an extent as possible be based on local
discretion as to how the funds can best meet the needs of the area.
"I congratulate the citizens of Metropolitan Detroit and the
State of Michigan on the strong leadership which has worked with us
consistently and has been instrumental in our decision in principle
to fund improved mass transit in Southeastern Michigan," the Secretary
said.
- more -
- 2 -
Other contingencies placed on the commitment in principle
by Secretary Coleman are that any transit construction will be
carried out with union cooperation in providing training and jobs
for unemployed youths, a major factor in Detroit's problem of urban
unrest; and that opportunities will be provided for minority contractors.
In regard to another matter, Secretary Coleman informed Governor
Milliken the Federal Highway Administration is examining the feasibility
of a system of emergency call boxes for installation on Michigan highways.
####
DEPARTMENT OF TRANSPORTATION
OFFICE OF THE SECRETARY
POSTAGE AND FEES PAID
Washington, D.C. 20590
DEPARTMENT OF
TRANSPORTATION
Official Business
DOT 518
U.S.MAIL
PENALTY FOR PRIVATE USE, $300
FIRST CLASS
ALEPECAN REVOLUTION MICENTENNAL
1776-1976
('s)
UPA-1
of TRANSPORTATION
THE SECRETARY OF TRANSPORTATION
WASHINGTON, D.C. 20590
AMERICA
STATES
of
October 19, 1976
Honorable William G. Milliken
Governor
State of Michigan
Lansing, Michigan
Honorable Coleman A. Young
Mayor
City of Detroit
Detroit, Michigan
Dear Governor Milliken and Mayor Young:
I am writing to confirm the firm commitment the Department of
Transportation made to you today regarding Federal funding for
transit improvements in Detroit. Specifically, the Department
of Transportation, through the Urban Mass Transportation
Administration (UMTA), is committing in principle $600 million
out of the 1974 UMTA Act to a broad range of transit improve-
ments for the Detroit metropolitan area.
We are making this advance commitment importantly and primarily
because of the great public leadership which you and the State
legislature have demonstrated in recent weeks. You have acted
at a time of considerable urgency in Detroit and you have asked
us for an early response. Together, you have forged a consen-
sus of public officials and private sector leadership at the
State and local levels on the need for transit and urban
revitalization investments. You have committed $220 million
in State funding to support your resolve. You have made your
commitments out front as an expression of concern and support
for the future of the metropolitan area. You have asked for
our response now and it is in that spirit of commitment to and
confidence in the future of Detroit that I make this announce-
ment today.
As I have discussed with you, the commitment in principle re-
quires that certain conditions will have to be met:
1. The private sector will have to make new investment
commitments, on at least a dollar-for-dollar basis
with the Federal funds ($600 million), for new
office, commercial and residential development in
the city;
- 2 -
2. Building contractors, unions, and others must provide
assurances that any transit construction will be
carried out in a way that provides apprenticeship
opportunities, skilled training and jobs for substan-
tial numbers of unemployed city youth;
3. The transit authority and other potential grantees
should provide assurances that there will be signifi-
cant opportunities for the participation of minority-
owned enterprises in the execution of the program; and
4. State and local governments will need to make necessary
commitments for supporting infrastructure and public
services to enhance the prospects for successful pri-
vate investment and transit operation.
I know from our conversations that you feel that these condi-
tions are valid and important. I share your view that major
transit investments need to serve as a rallying point for an
entire program of urban revitalization in which all parties
can join. That commitment to urban preservation and revitali-
zation is at the heart of DOT's decision to proceed in this
manner in Detroit.
I note that the total value of the commitment to Detroit will
exceed $1.4 billion--$600 million Federal, $600 million private,
and $220 million in State matching funds.
Of course, we will have to await the completion of the alterna-
tives analysis work before we can collectively make judgments
about the appropriate rapid transit, light rail, express bus,
and people mover proposals, or some combination of those, which
are best for Detroit. We believe that these choices should
depend importantly on local conditions, but UMTA will assure
Federal requirements are met in this process.
Finally, I have asked the Federal Highway Administrator to
make a maximum effort, within his authority and funding, to
assist you in providing the Motorist Call Box System which you
seek to enhance security and safety on the freeways in Detroit.
-3-
I am hopeful that the kind of partnership approach I have
described will help to build the revitalized Detroit which
we all seek. I want to reiterate that it is State and
local initiative- led by a concerned Governor and Mayor,
producing matching commitments from both State and local
governments and the business community--which has resulted
in this Federal commitment.
CC: Quern
Hope
THE WHITE HOUSE
WASHINGTON
37
December S, 1976
ADMINISTRATIVELY CONFIDENTIAL
MEMORANDUM FOR:
JIM CANNON
FROM:
JIM CONNOR
SUBJECT:
Jacksonville Downtown People-Mover
The attached brochure was returned in the President's outbox with
the following notation:
"Dr. Lovejoy and Mr. Davis of Jacksonville, Florida
saw me this A.M. and gave me this.
The doctor operated on my knee in 1972 when he was
in Navy. He now practices in Florida.
I told them Secretary Coleman would make decision etc. "
Please follow-up with any action that is necessary.
cc: Dick Cheney
12050ml
Trans.
file
THE WHITE HOUSE
WASHINGTON
December 13, 1976
76
8 57
MEMORANDUM FOR:
FROM:
JUDITH People JIM CANNON Mover RICHARDS Project HOPE FRU
SUBJECT:
UMTA officials advise that the announcement by the Secretary
of Transportation awarding these 3 city demonstration projects
should be December 22 or 23.
With respect to the Jacksonville People Mover Project, Bob
Patricelli met with the Mayor of Jacksonville and the pro-
posed contractor last week, as a result of a telephone con-
versation between Dr. Lovejoy and the Executive Assistant to
the UMTA Administrator.
We are advised that "marathons" are scheduled for the staff
to study the submitted proposals and that many of the 11
vying cities have prepared excellent proposals.
The following cities remain in the running:
Jacksonville, Florida
Detroit, Michigan
Cleveland, Ohio
St. Paul, Minnesota
Houston, Texas
Los Angeles, California
Baltimore, Maryland
Miami, Florida
Norfolk, Virginia
Indianapolis, Indiana
St. Louis, Missouri
FORE
21003
INFORMATION
THE WHITE HOUSE
Trans.
WASHINGTON
December 17, 1976
MEMORANDUM FOR THE PRESIDENT
FROM:
SUBJECT:
People Jan Mover Project
JIM CANNON
At this point these eleven cities are still in the
running for the three city demonstration projects
to be awarded:
Jacksonville, Florida
Detroit, Michigan
Cleveland, Ohio
St. Paul, Minnesota
Houston, Texas
Los Angeles, California
Baltimore, Maryland
Miami, Florida
Norfolk, Virginia
Indianapolis, Indiana
St. Louis, Missouri
Secretary Coleman will announce his choices on
December 22 or 23.