Congressman Keith Ellison (D-MN) applauded U.S. Secretary of Transportation Ray LaHood's announcement yesterday that the cost-effectiveness index (CEI) would be repealed as the main criteria when determining federal funding for public transit projects. The CEI is a complex federal formula used to measure the impact and benefits of proposed transit lines.
"I applaud this Administration's decision to repeal the CEI," Representative Ellison said. "The existing formula has major limitations that negatively impact the ability of transit projects serving minority communities in urban areas to effectively compete for funding. The negative impact of the existing formula is why I introduced legislation last month to repeal the CEI."
The Transportation Equity Act of 2009 (H.R. 4367) was introduced on December 16, 2009. The CEI relies solely on travel demand models oriented toward highway commuter trips. The models fail to accurately capture transit ridership by non-highway commuters and by individuals making non-highway oriented trips, including trips made by pedestrians and cyclists. In general, minority, low-income, and urban residents make up a larger share of these non-commuter and non-highway oriented trips. Therefore the cost-effectiveness index undercounts these individuals and places a reduced value on the time saved by the non-highway and non-commuter trips.
"We live in a day and age where our dollars are stretched," Ellison stated. "We must always make sure that every last one of those dollars is stretched equitably between all of our communities -- especially when it comes to the federally funding for public transit projects," Ellison concluded.