CUTC TEA-21 Reauthorization Position Paper

Draft Position Paper
June 12, 2002

Funding for Research, Technology Transfer and Workforce Development in the Reauthorization of TEA-21

This paper presents the Council of University Transportation Centers' (CUTC) positions on the reauthorization of TEA-21 and the rationale for those positions. The economic competitiveness of this country, as well as the quality of life experienced by its citizens, are highly dependent on the quality of the transportation system. To maintain this quality, the rate of discovery and technological breakthroughs in transportation must increase, and a workforce of sufficient size must be identified and trained.

In accomplishing this, the university environment offers many key advantages. Universities are uniquely qualified to make a critical contribution to transportation through both the development of human capital and the discovery and application of knowledge. No other institution or organization in the United States offers this combination of attributes, and it is so important to continued economic and social progress. Universities are well positioned to perform a portion of the relevant research, both applied and basic, needed to help advance innovation in transportation. Further, universities offer the proper objective environment for conducting the research that ultimately has a strong public interest component. The research, and its associated funding, will also greatly facilitate the capability of universities to play their key role in developing the future workforce needed to sustain and advance a modern, efficient transportation system.

The CUTC Organization

The Council of University Transportation Centers, or CUTC, was created in 1982 as a not-for-profit corporation. CUTC is an organization comprised of over 60 colleges and universities in the United States who have significant programs of transportation research and/or education. CUTC has member universities in 33 different states. It is a voluntary dues paying organization.

The basic purposes of CUTC include: 1) improving and enhancing research in transportation and related areas; 2) providing a forum for better integrating and coordinating research with academic education and technology transfer; and 3) providing a medium through which transportation research may be enhanced, and information and opinions on emerging problems in transportation research can be expeditiously exchanged.

To clarify a point of possible confusion, the Council of University Transportation Centers is not the same as the University Transportation Centers (UTC) program. CUTC was formed in 1982 as a forum for universities involved in transportation research and education to share and advance common interests. The U.S. DOT originally initiated the UTC program in 1988. Many of the universities who have U.S. DOT designated university transportation centers are also members of CUTC, but many are not. While CUTC is a very strong supporter of the U.S. DOT university centers program, the interests of CUTC are much broader than just the UTC program.

Overarching Arguments

The mobility of people and freight provided by transportation is one of the main underpinning pillars of an advanced and progressive socioeconomic and political system. It allows for the development of the competitive markets so necessary for a capitalistic system to flourish, and it is also a necessary condition for economic specialization to occur, thereby providing increased economic prosperity. Globalization, a key to economic advancement on a worldwide basis, is closely tied to an efficient and effective transportation system, and the development of an integrated society and a democratic political system is dependent on mobility. In addition, the life-enhancing activities of socializing, worshiping, shopping, entertainment and travel are critically linked to transportation. The degree of importance transportation has to our socioeconomic system suggests that continued development of knowledge and innovation are important to facilitate the continued advancement of mobility. This need will be magnified by the significant changes that are projected to occur.

These projections suggest that: 1) by 2025, the U.S. population will be 325 million, an increase of 60 million over the 2000 population; 2) vehicle-miles of travel will grow from 5 trillion in 2000 to 8.4 trillion in 2025; 3) gross domestic product in 2025 will be $29 trillion, 1.5 times the 2000 GDP; 4) freight tonnage will increase by 29% between 2000 and 2025; and 5) the median age of 35.2 in 1999 will increase to 38 in 2025, and the share of the population over the age of 65 will increase from 13% to 19%. These changing conditions bring with them new challenges.

In this environment, the Council of University Transportation Centers strongly supports increases in resources for a broad range of federally funded transportation research and education programs. Specific dollar recommendations are included in attachment A at the end of this position paper. For the research programs identified in that attachment, CUTC recommends a total increase in current research spending of about 55% to 65%. As shown in the attachment, the greatest percentage increase requested is in the University Transportation Centers program, which is the program of greatest importance to many of CUTC's members.

This paper sets forth the basic reasons CUTC has adopted these positions. Two overarching issues frame the discussion.

First, federal investment in transportation research has historically been low. Meeting future needs will necessitate a change in those investment levels. Mobility, safety, homeland security, and the environment continue to generate growing public attention. Rapid changes are taking place in areas that impact transportation, such as technology, materials, and financial and institutional issues. If we are to both maintain a position of economic competitiveness and offer our citizens a high quality of life, innovation will have to be an area of emphasis, and it will need to be supported by a strong, well structured, federally funded research program.

Second, the availability of an adequately trained workforce has become a significant concern. A benefit of university research is that two results occur: 1) useful and innovative research findings are generated; and 2) the research funding helps attract and develop the workforce of the future. In this area, the role of universities is extensive. We attract students to the transportation profession and educate those students, we prepare the future faculty, and we provide continuing education. All are necessary, and research funding is a critical element in allowing universities to effectively attract, train and educate the next generation of transportation professionals.

Each of these issues presents a convincing argument for larger research programs. Given that they are closely intertwined, and support for one leads to advances in the other, makes an even more compelling argument for increased transportation research and technology transfer funding. These arguments are set forth below in more detail.

Invest in Innovation

The history of the United States, especially as it relates to economic prosperity and quality of life, clearly demonstrates the need for, and benefits that come from, a well-conducted program of research. The private sector, which is often viewed as the driving force in national prosperity, considers R&D to be a routine investment that is necessary to maintain a competitive advantage. It enables this sector to be in position to develop the essential "next generation" of innovation.

A consensus on the need for more research. It is recognized by most transportation interests that increased innovation is badly needed in transportation. Other transportation organizations have done a good job of reviewing expenditure levels on transportation research and the adequacy of those funds. The need for an increased transportation research program is set forth in documents prepared by organizations such as the American Association of State Highway and Transportation Officials, the American Road and Transportation Builders Association, the American Public Transportation Association, and the Transportation Research Board. It is encouraging to see so many organizations come to a basic agreement on this key issue. This is perhaps the broadest consensus that has existed in decades concerning the need for increased transportation research funding. As AASHTO concludes, "it is clear that the rate of discovery and technological breakthroughs for transportation must be increased." This CUTC position paper recognizes and supports the findings of these other organizations.

The Council of University Transportation Centers strongly supports, and is actively participating in, ongoing national efforts intended to identify research agendas and approaches for involving in a meaningful manner the various stakeholders in the transportation research program. CUTC concurs with AASHTO that there is a justifiable need for a comprehensive, national vision for transportation research in this country.

Research is a key part of what universities do. Universities actively participate in most of the federally funded transportation research programs. As a consequence, broad increases in funding for research in many different programs will result in more research being undertaken in the university environment. Universities are very capable of performing both basic and applied research, and university research has a well-proven record of producing innovative results that are implemented in both the public and private sectors.

An appropriate federal role in funding research. The Council of University Transportation Centers concurs with Transportation Research Board Special Report 261 which concludes that there is a strong, justifiable role for the federal government in funding transportation research. The federal role should primarily: 1) focus on fundamental, long-term research aimed at achieving breakthroughs in the understanding of transportation-related phenomena; and 2) undertake research aimed at both significant research gaps not addressed in other programs and emerging issues with national implications.

Research has been seriously under-funded. Several measures strongly suggest that transportation research has received inadequate funding for decades. It is readily apparent that innovation must be a critical part of addressing the complex issues and problems confronting transportation. If we are to cost-effectively use the tens of billions of dollars spent annually and keep pace with technology innovation in the 21st century, an effective and adequately funded research effort is critically needed. The lack of research funding in the past is no doubt part of the reason that the problems facing transportation today are so substantial. The following support the basic contention that federal transportation research funding has been inadequate.

• While transportation and health care represent similar shares of GDP, federal spending on health care is ten times that spent on transportation.
• In FY2001, the Department of Transportation spent 1.5% of its budget on research. This compares to 14.9% in the Department of Defense, 4.8% in the Department of Health and Human Services, 8.1% in the Environmental Protection Agency, and 2.8% in the Department of Agriculture.
• R&D as a percentage of net sales for various sectors is as follows (1997): Basic industries, 1%; Motor vehicles, 4%; Aircraft, 4%; Medical substances and devices, 12%; chemicals, 3%; Information and electronics, 7%; and Machinery, 3%. In comparison, for highway expenditures, research is between 0.5% and 0.6% of total expenditures.

The National Research and Technology Partnership concluded that, as part of a major review of highway research programs, the current funding level would not cover even half of the research needs identified in that major national undertaking.

Research needs are multi-modal. To date, federal transportation funding has come largely from the highway program. As the system becomes more multi-modal, and as interfaces between the various modes become more important, other modal agencies in addition to the Federal Highway Administration will need adequate research budgets, and those should come from new sources of research money.

The issue of matching money. In soliciting work, an increasing number of sponsors are requiring that the performing organization provide match money. It is easy to understand that the sponsoring organization feels by doing this they are leveraging their money and getting a larger investment in their program. The University Transportation Center program is a good example of this. However, universities have access to little or no matching money. Thus, when match is required, universities have to look elsewhere to agencies such as state DOTs. In these instances, the state DOT would then justifiably expect some level of control over the program. A result can be that the original intent of the research program is altered significantly to meet the desires of the agency providing matching funds. The very limited ability of universities to provide matching money needs to be recognized in developing federally funded programs of research.

Invest in the Transportation Workforce and Professional Development

The future workforce is a major concern. Work being done by many different groups is highlighting the seriousness of the workforce issue. The problems are exacerbated by the aging "baby boomers." Estimates suggest that, by 2004, 32% of the federal work force will be at retirement, and another 21% will be eligible for retirement. Other studies suggest that 40% of state and local government employees will be eligible to retire in the next 15 years.

A number of actions are being taken by the transportation sector in response to these problems. For example, a special Transportation Research Board committee has recently been established to investigate workforce issues, and a national workforce summit involving top-level officials of the U. S. DOT and other key organizations was recently undertaken to help better understand the problem and potential solutions. The American Public Transportation Association's Workforce Development Initiative concluded that attracting and retaining a skilled, committed, and diverse workforce is one of the industry's most critical problems. The General Accounting Office has added strategic human capital management to its "high risk" list.

Many of the "solutions" being discussed by industry involve actions such as better recruiting or increased outsourcing of work. However, these types of solutions make an assumption that someone is producing and training the necessary human capital, and this is where the role of the universities becomes so critical.

Transportation is an interdisciplinary field. Transportation has emerged from an area of study focused primarily on the building of infrastructure to an academic field involving the environment, social equity, economic development, advanced technology, and many other areas of public concern. This requires several disciplines ranging from the very technical to the softer sciences, including most all of engineering, economics, business management, computer science, operations research, psychology, and sociology, to name just some. This will require a new type of transportation professional, one that universities are uniquely qualified to develop and train.

Universities have to be among the key players. The future of this nation will depend on a knowledge-based economy, and universities are absolutely essential players in making that happen. Knowledge continues to develop exponentially, doubling every 3 to 7 years. Our economy has shifted from one being based on the traditional resources that provided a competitive advantage, such as land, natural resources, capital and unskilled and semi-skilled labor, to an economy that is dependent on the "knowledge worker." The knowledge worker, which includes everyone from the person on the factory floor running sophisticated, automated systems to the person in the research laboratory, adds more to the economic process through her/his knowledge of information, systems, and technical relationships than do the traditional factors of production. The new entrants in the field of transportation are increasingly representative of this new breed of worker. Universities are critical to producing such "knowledge workers."

Developing and training the future workforce-meeting the human capital needs-is, quite simply, the major product of universities. In many respects, it is closely correlated to research. As funding for research increases, the number and quality of students pursuing careers in transportation also increases. Universities are working harder to find the resources needed to support key programs, and research is a key part of the university's funding mix needed to develop and implement necessary educational and training programs. Thus, the need for research funding, discussed previously in this paper, is even more critical since that research funding will also be essential in allowing the universities to develop and offer relevant transportation educational programs, and to recruit the students to participate in those programs.

Universities are positioned to address these needs in a variety of manners. With increases in research funding, more and better students can be attracted to transportation as a career. Enhanced continuing education programs will be offered. Of perhaps equal importance, although not necessarily as readily apparent, is the role of universities in developing future faculty. Attracting the right people to the doctoral programs and providing a quality education to those individuals is critical if sufficient faculty are going to be in the classrooms to educate the students in the years to come. As is the case in much of the rest of the transportation sector, the aging transportation faculty will need to be replaced by a new group of highly trained and motivated educators.

Through many programs, such as the University Transportation Centers program and the Local Technical Assistance Program, universities are actively involved in continuing education. As dramatic changes continue to occur in areas such as advanced technologies and materials, the capability of universities to provide relevant continuing education will become increasingly important.

Universities are in an excellent position to play a key role in attracting, developing, and training the work force of the future. The increased federal funding for research requested by the Council of University Transportation Centers will greatly enhance the capability of the universities to meet this challenge.

Conclusions

Based on the information presented in this position paper and the findings developed by other transportation organizations, the Council of University Transportation Centers concludes the following.

• The needs for transportation research are substantial. More innovation is needed to address transportation needs in order to maintain economic competitiveness and provide a high quality of life.
• There is an appropriate federal role in funding transportation research.
• Federal investment in transportation research has been inadequate. The Council of University Transportation Centers recommends increases in a broad range of federally funded transportation research programs. For those programs, an increase over current funding levels in the range of 55% to 65% is requested. While the Council supports broad increases, the University Transportation Centers program is the area of greatest interest to many of our members, and it is also the area where the greatest increases are requested.
• Additional research funding is needed to address issues associated with modes other than highway and with modal interfaces.
• University research, both applied and basic, has a proven track record and must be a key participant in federally funded transportation research programs.
• Workforce issues are a major concern. Having an adequate and trained future workforce is a critical concern in the transportation sector. The universities are essential participants in addressing these issues, and sufficient research funding is needed to help support this university role.

Attachment A

CUTC TEA-21 Reauthorization Position Paper

Education, Research, and Technology Transfer

Increased development of intellectual capital, growth in research, and implementation of related developing technologies are crucial to the much needed continuous improvement of transportation and are vital to the United States socioeconomic system.

The United States surface transportation system must continue to develop for the nation to maintain its economic and political leadership role of the free world. The goal of this evolution is a more efficient and technologically advanced surface transportation system that better serves the business and social interests of the country. An enhanced surface transportation system improves domestic competition, increases the ability to compete globally, and provides for an improved social environment.

These potential improvements, however, are dependent on a well-educated pool of human capital and corresponding research and technology deployment programs that address major concerns and issues of the surface transportation system. Thus, it is imperative that relevant programs of undergraduate and graduate education in combination with programs of basic and applied research be further developed that focus on the pragmatic issues of planning, programming, managing, building, reconstructing, maintaining and operating a long-lasting surface transportation system in a safe, equitable, and environmentally sound manner. Further, these education and research programs should also address the private and public sector industries and organizations that utilize the transportation system. Finally, such programs should also include a basic research component that results in technological breakthroughs that provide the foundation for further advances in the near and far term.

Reauthorization Issues

• Provide funding for transportation education programs to ensure that well trained and educated human capital are available to the transportation community to plan, construct, manage, and maintain transportation systems, using the latest techniques and technologies; conduct the research that leads to the development of leap-frogging technologies, materials, and management; educate the prospective new transportation leaders in transportation in a innovative, enlightened, and competent manner; and operate the transportation system in a highly qualified manner that results in significant increases in mobility for the United States.

• Adequately fund university research to take advantage of universities' unique abilities to provide solutions to complex problems, and also provide the opportunity for states to develop university programs that address unique state challenges, and further, allow states to participate in resolving regional and national issues through university involvement. What's more, adequately funded research provides opportunities for students to participate in solving complex transportation issues.

• Given the importance of research to the continued development of transportation and the limited nature of the scarce resources to conduct research, a strategic plan for transportation research should be developed by the stakeholders (federal, state, private sector, and universities).

• Expand federal funding for research consistent with the need for an integrated and standardized national transportation system and commensurate with the ability of research to add value to the field of transportation by improving the overall cost-effectiveness, durability, safety and environmental soundness of transportation infrastructure projects to meet national mobility requirements. Federal surface transportation research activities should include projects that address innovative technologies, institutional innovation, policy and planning issues, mass transportation, operations, transportation demand management, intelligent processes and methods, inventive contracting and financing, and promote the testing and experimental use of innovative technologies and materials.

• Ensure federal research funds are allocated on the basis of merit and used consistently with strategic research needs.

• Advance mobility in the United States through breakthrough advances in adapting and integrating existing and new technologies into transportation by continued federal investment in transportation technology through the Intelligent Transportation System and other technology development and deployment programs.

• Provide the necessary funding for technology transfer to ensure that the latest knowledge and information is available to speed up transportation planning, construction, and operations while enhancing the safety, quality, and durability of the infrastructure for the 21str Century.

Funding Recommendations by Program

The following recommendations are based on the perceived needs to advance the technology and state-of-the-art of transportation thereby resulting in significant improvements in mobility. This would help keep the United States competitive in a global environment and improve socialization and democratization at the same time.

Endnotes
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1. These estimates and recommendations do not take into account that some of the funds that are legislatively designated for special projects through both the legislative authorization and appropriation processes. As such, these funds are not available to the respective agencies for funding the discretionary programs. For example, 14% of the FHWA Surface Transportation Research funds were earmarked in FY 1997 whereas 67% were earmarked in FY 2001.

2. Last year of ISTEA, FY 1997

3. Average for the life of the bill, FY 1998 through FY 2003

4. Last year of TEA-21

Note: CUTC strongly supports and endorses continuation of the NCHRP program, which is funded based on a percentage of SPR money.