by the RPA Staff
As anyone who has moved from one home to another, one job to another, or one marriage to another knows, transitions can be dangerous. There is the opportunity to start fresh, to do things differently, but also to get lost, meander and miss the proverbial boat.
So it is obviously with President-elect Barack Obama, who in the next roughly 10 weeks must select a cabinet and a direction for his presidency. And less obviously, so it is with the Tri-State region, which has a chance to position itself so that when a new president comes knocking, we are ready to answer.
One of the most immediate priorities for the region is to encourage and weigh in on the growing consensus for increased infrastructure spending. The first opening is an all-but-certain new fiscal stimulus package, perhaps even before Obama's inauguration. The details matter a great deal, not only for how quickly the program begins to work, but also for whether it supports productive activities. If targeted to needed projects, increased spending on transit, bridges, water projects and other infrastructure should be an important part of the package.
But the opportunity will be squandered if the program is limited to a one-time shot of fiscal stimulus. Rather, it needs to be an opening salvo in a long-term campaign to restore and modernize the nation's economic foundations. A National Infrastructure Investment Plan needs to be shaped by a compelling vision and sound criteria, so that the economy it supports is energy-efficient, globally competitive and equitable. It is in both the region's and nation's interest to use the immediate economic crisis to push for this comprehensive national plan, one that would also capitalize on our strengths as a transit-oriented, energy-efficient metropolitan region.
To take full advantage of a stimulus package, we also need to demonstrate an ability to use federal resources quickly and wisely. The easiest part of this is to develop a list of ready-to-go projects that can put dollars to work immediately. For the region's transportation network, investment could immediately go towards subway station renovations and new subway, bus and commuter rail vehicle purchases, and enhanced technology to allow for more frequent and reliable service. The harder part is to demonstrate the state and local commitment to funding these projects. Federal dollars alone won't pay for these, and our case will be stronger to the extent that we can demonstrate that we are taking serious measures to address funding shortfalls at the MTA and in state transportation departments.
Another priority that intersects national and regional interests is regulatory reform of the financial markets. As the nation's financial capital, any change in the regulatory environment will affect the tri-state region more than anywhere else. The region's financial institutions and political leaders were key players in the drive to deregulate financial markets, and need to be leading the chorus for reasonable reforms that restore trust and stability while still enabling US firms to innovate and compete globally.
The outcome of this debate is likely to be a seminal transformation of investment banking, hedge funds, the mortgage industry and other finance sectors. Getting it right involves a difficult balancing act of providing sufficient oversight and transparency to minimize future meltdowns while giving firms enough flexibility to respond to keep pace with rapidly changing global markets. At stake in our region is the size, dynamics and volatility of the industry that largely shapes the booms and busts of our economy.
New federal actions to stem foreclosures are also safe to predict, even though the form that this will take is unclear. Even though the region's housing market is in better shape than many parts of the country, the foreclosure rates in many parts of the region are among the highest in the US. We also have one of the largest and most diverse housing markets in the country. Besides weighing in on national proposals, different states and localities in the region will need to develop their own responses. These will need to anticipate and coordinate with federal initiatives, and innovations here can also help shape the national agenda.
Finally, to make our case to the federal government that the tri-state region deserves this funding, it is essential that we demonstrate agreement on the strategic priorities of the region. The recent advancement of Access to the Region's Core (ARC) was due in no small part to the agreement of both the New York and New Jersey governors that the project is essential to the future economic well-being of the region. Likewise, other projects can benefit from equal support of New York, Jersey, and Connecticut congressional delegations.
At the scale of the Northeast Megaregion, RPA's work with the Business Alliance for Northeast Mobility (a coalition of business and civic groups from Maine to Virginia) played a pivotal role in passing the recent Rail Safety Act in Congress, which will increase funding for improvements to the Northeast Corridor. To the extent that the Northeast can work together and identify their strategic priorities, a new Obama administration will find stronger, more willing partners to implement new national initiatives.
As anyone who has moved from one home to another, one job to another, or one marriage to another knows, transitions can be dangerous. There is the opportunity to start fresh, to do things differently, but also to get lost, meander and miss the proverbial boat.
So it is obviously with President-elect Barack Obama, who in the next roughly 10 weeks must select a cabinet and a direction for his presidency. And less obviously, so it is with the Tri-State region, which has a chance to position itself so that when a new president comes knocking, we are ready to answer.
One of the most immediate priorities for the region is to encourage and weigh in on the growing consensus for increased infrastructure spending. The first opening is an all-but-certain new fiscal stimulus package, perhaps even before Obama's inauguration. The details matter a great deal, not only for how quickly the program begins to work, but also for whether it supports productive activities. If targeted to needed projects, increased spending on transit, bridges, water projects and other infrastructure should be an important part of the package.
But the opportunity will be squandered if the program is limited to a one-time shot of fiscal stimulus. Rather, it needs to be an opening salvo in a long-term campaign to restore and modernize the nation's economic foundations. A National Infrastructure Investment Plan needs to be shaped by a compelling vision and sound criteria, so that the economy it supports is energy-efficient, globally competitive and equitable. It is in both the region's and nation's interest to use the immediate economic crisis to push for this comprehensive national plan, one that would also capitalize on our strengths as a transit-oriented, energy-efficient metropolitan region.
To take full advantage of a stimulus package, we also need to demonstrate an ability to use federal resources quickly and wisely. The easiest part of this is to develop a list of ready-to-go projects that can put dollars to work immediately. For the region's transportation network, investment could immediately go towards subway station renovations and new subway, bus and commuter rail vehicle purchases, and enhanced technology to allow for more frequent and reliable service. The harder part is to demonstrate the state and local commitment to funding these projects. Federal dollars alone won't pay for these, and our case will be stronger to the extent that we can demonstrate that we are taking serious measures to address funding shortfalls at the MTA and in state transportation departments.
Another priority that intersects national and regional interests is regulatory reform of the financial markets. As the nation's financial capital, any change in the regulatory environment will affect the tri-state region more than anywhere else. The region's financial institutions and political leaders were key players in the drive to deregulate financial markets, and need to be leading the chorus for reasonable reforms that restore trust and stability while still enabling US firms to innovate and compete globally.
The outcome of this debate is likely to be a seminal transformation of investment banking, hedge funds, the mortgage industry and other finance sectors. Getting it right involves a difficult balancing act of providing sufficient oversight and transparency to minimize future meltdowns while giving firms enough flexibility to respond to keep pace with rapidly changing global markets. At stake in our region is the size, dynamics and volatility of the industry that largely shapes the booms and busts of our economy.
New federal actions to stem foreclosures are also safe to predict, even though the form that this will take is unclear. Even though the region's housing market is in better shape than many parts of the country, the foreclosure rates in many parts of the region are among the highest in the US. We also have one of the largest and most diverse housing markets in the country. Besides weighing in on national proposals, different states and localities in the region will need to develop their own responses. These will need to anticipate and coordinate with federal initiatives, and innovations here can also help shape the national agenda.
Finally, to make our case to the federal government that the tri-state region deserves this funding, it is essential that we demonstrate agreement on the strategic priorities of the region. The recent advancement of Access to the Region's Core (ARC) was due in no small part to the agreement of both the New York and New Jersey governors that the project is essential to the future economic well-being of the region. Likewise, other projects can benefit from equal support of New York, Jersey, and Connecticut congressional delegations.
At the scale of the Northeast Megaregion, RPA's work with the Business Alliance for Northeast Mobility (a coalition of business and civic groups from Maine to Virginia) played a pivotal role in passing the recent Rail Safety Act in Congress, which will increase funding for improvements to the Northeast Corridor. To the extent that the Northeast can work together and identify their strategic priorities, a new Obama administration will find stronger, more willing partners to implement new national initiatives.
@RegionalPlan