Economic Development
Policy Paper
Definition:
Economic Development - Includes linking transportation investments to economic development, including providing for an equitable distribution of jobs and investments in minority and low-income communities. It calls for an economic development policy that is based on a Fix It First model for investment in existing communities, including preservation of natural, cultural, and historical resources. This recognizes the Southwestern Pennsylvania Commission’s (SPC) unique long range planning process for both transportation and economic development programs and projects. It also includes efforts to ensure investments in existing infrastructure to maintain freight and goods shipment. Further included are efforts to promote the need to invest in an intermodal system linking ports, airports, and highways to ensure a seamless means of transporting freight and goods.
Best Practices:
Freight and Goods Maintenance and Funding
· Delaware Valley Regional Planning Commission (DVRPC) Freight Forward Program
Maintenance and minor improvements to highways, bridges, and railroads can be very helpful in making freight operations more efficient and safe. For this reason, an umbrella program overseen by DVRPC called, Freight Forward, was instituted by transportation agencies to benefit freight carriers and shippers in the Delaware Valley. The program centers on "small cap" projects that can be easily and quickly implemented. Funding for the projects comes from the Congestion Mitigation and Air Quality Program.
DVRPC also identifies separate freight projects in its Transportation Improvement Program (TIP) and provides funding for freight planning studies in the Unified Planning Work Program (UPWP).
Equitable distribution of jobs and investments in minority and low-income communities
· Center for Community Change/Transportation Equity Network (TEN) – Issue Brief: Transportation Money for Jobs and Job Training
- Money for Job Training - states may use up to half of one percent of their surface transportation and bridge funds, not to exceed $10,000,000 per fiscal year to develop and administer highway construction training. TEN calls for this effort to be focused upon increasing training opportunities for low-income people of color and women
- On the Job Training for Welfare Recipients - States are now encouraged to implement on-the-job training programs for non-traditional workers (women and minorities). TEA-21 also gave states the option to set aside job training positions for current welfare recipients.
- Local Hiring Agreements - In 1998, the Alameda Corridor Jobs Coalition (ACJC) won a major hiring agreement with the Alameda Corridor Transportation Authority. It guarantees that 30 percent of all hours worked by new hires will go to local community residents. ACJC's victory speaks to ongoing struggles within the transportation industry to diversify its workforce to embrace women and minorities and women- and minority-owned businesses. Federal regulations now prohibit local hiring agreements in federal aid highway projects. TEN is now working to have these regulations changed so that local hiring is possible at the option of local communities.
- Minority Hiring - Under federal law, all states are required to establish targets or goals for the number of women and minorities employed by contractors in transportation construction. Very few states come close to meeting their targets, and this system does not necessarily benefit low-income people. Much must still be done to ensure that job benefits from major construction projects go to those who need them most.
Policy Recommendations:
1. SPC is urged to consider adoption of a program modeled on the DVRPC Freight Forward program that would be expanded to waterway transportation along with roadway, bridges, and railroads. This would be overseen by the existing Freight Forum and coordinated with the committee that is established to oversee CMAQ funding.
2. SPC’s is urged to utilize the public input process developed for the TIP, including testimony from the public on potential projects for economic development programming, including the Appalachian Regional Commission Area Development Program.
3. SPC is urged to call upon PENNDOT to encourage that:
a. Up to half of one percent of surface transportation and bridge funds are being utilized to develop and administer job training to increase training opportunities for low-income people of color and women.
b. Job training positions are set aside for welfare recipients.
c. Minority hiring goals are set and met with emphasis on benefiting residents of communities that are affected by transportation projects.
4. SPC, Counties, public transportation agencies, as well as other transportation authorities such as the Port of Pittsburgh and Allegheny County Airport Authority, are urged to call upon the legislative delegation to remove regulations that do not allow for local hiring agreements on federal aid highways. These organizations are urged to establish local hiring agreements for non-federal aid highways and other projects as an interim measure where they do not now currently exist.
5. SPC, Counties public transportation agencies, as well as other transportation authorities such as the Port of Pittsburgh and Allegheny County Airport Authority, municipal authorities, and school boards are urged to address the issues raised under Recommendations 3 and 4 for other capital projects other than transportation that are under their jurisdiction.
6. SPC is urged, in cooperation with the Counties and municipalities, when developing the Long Range Transportation and Development Plan to ensure equitable distribution of jobs and investments throughout the region, to explore feasibility of revenue and/or resource sharing in the distribution of economic development programming and funding to facilitate equitable benefits and burdens of development.
7. The Commonwealth, SPC, the Counties, and local governments are urged to adopt economic development policies that are based on a Fix It First model that calls for investment in existing communities. These organizations are further urged to give funding prioritization to those communities that have demonstrated the need to redevelop their economies to serve their historically underserved residents in obtaining family sustaining employment opportunities.
8. The Commonwealth, SPC, the Counties, and local governments are urged to connect economic development planning and land use planning with workforce development and public transportation planning. The Commonwealth, SPC, the Counties, and local governments are further urged to ensure that public investments for economic development are tied to public transportation and workforce development reviews.
9. The Commonwealth, SPC, the Counties, and local governments are urged to utilize the preservation of natural, cultural, and historic resources as a tool for economic development.