|
ISSUES
Facts
about the Cross County MetroLink Extension
Citizens for Modern Transit
FACT: The
people of St. Louis overwhelmingly support the Cross County MetroLink
Extension.
- In 1994,
"M" meant MetroLink: more than 60 percent of voters approved Proposition
"M" in 1994.
- The municipalities
served by the Extension-including local governments, chambers
of commerce, various civic groups and the overwhelming majority
of residents-support it.
- St. Louis
County residents account for half of all Missouri riders, making
up the largest single group of MetroLink users, and will be an
even larger percentage in the future.
FACT: Bi-State
and government officials have everything they need to make the Cross
County Extension happen.
- The Cross
County MetroLink Extension is fully funded through "Proposition
M."
- It has been
almost three years since the East-West Gateway Coordinating Council
unanimously approved the Cross-County Extension in 1999.
- Design and
engineering plans for the Extension meet or exceed stringent federal
standards.
- Attempting
major changes in the current plan will indefinitely delay and
seriously harm an effort that has taken nearly 10 years, and which
has the overwhelming support of voters and local governments.
FACT: MetroLink
is one of the most successful light-rail systems in the nation.
- MetroLink
transports as many as 60,000 riders per day-125,000 for Fair St.
Louis.
- The Cross
County MetroLink Extension will add at least 18,000 riders per
day to the system-a low estimate given the history of ridership.
FACT: The
Cross County MetroLink Extension will spur employment and economic
growth.
- Coupled
with the existing MetroLink line, the Extension will thread the
major employment corridors of St. Louis, including downtown, Clayton,
the major universities and major business parks and retail centers.
- MetroLink
serves as a hub for Transit Oriented Development (TOD), and has
spurred the $55 million Westin Hotel at Cupples Station, th+e
$60 million planned mixed use development at the Sunnen Business
Park in Maplewood and several major facilities in the Metro East.
- MetroLink
will provide a vital connection to new and existing jobs for people
who previously couldn't access them-only 40 percent of the jobs
in the St. Louis Metropolitan area are accessible by some form
of public transit.
FACT: The
Cross-County MetroLink Extension will improve the St. Louis area's
traffic congestion and even help those who don't ride MetroLink.
- More than
70 highway projects are slated for the St. Louis area this summer
alone. When the renovation of Highway 40 begins, MetroLink will
provide an important commuting alternative.
- The Extension
includes the reconstruction of the Forest Park Parkway, improving
its status as a major traffic artery.
- A full MetroLink
train at rush hour removes 125 cars from the highway.
Metro's
CEO addresses CMT Board on status of Metro updated
(11/1/05)
Transit operations,
the Cross County extension and the financial situation at Metro
were all topics of discussion when Metro President Larry Salci addressed
the CMT Board on Oct. 20.
Salci and Adella
Jones, vice president of governmental affairs at Metro, gave a status
report on the condition of the agency, the Cross County, and the
future financial situation at Metro. Salci reported that the agency
is in good shape now, but because the region has never adopted a
policy for funding the operation of the system, the agency is facing
a dire financial situation by FY08 without a new source of revenue.
Salci, in his third full year at the agency, has a new management
team in place with a focus on customer orientation.
Over the last
three years, there have been several big changes that have helped
to reduce overall operating costs at Metro. Metro has reduced absenteeism
from 7700 to 2500 lost days and thus reduced overtime hours. Metro
has aggressively monitored worker's compensation claims reducing
costs by $4 million. A new safety program has helped reduce costs
even further. Also, Metro is self-insured, which was costing the
agency more than $7 million a year. Metro has aggressively challenged
claims against the agency and has successfully reduced claims to
$2.5 million a year. The Missouri Legislature has restored sovereign
immunity to Metro which should further help hold down claims.
On the systems
side, Salci indicated that performance is much better. All the buses
have been overhauled. Five new transfer stations have been built.
A reconfigured bus system will go into effect in Nov. 2005 that
will eliminate duplication of service in some areas and increase
service in other areas. On-time performance is up in all categories.
One big issue facing the agency is the cost of diesel fuel which
continues to rise. Metro put in place a fuel hedging program which
has allowed them to save almost $5 million over the last 15 months
in realized and unrealized gains. Salci said that the fuel costs
will continue to be a problem as he does not see them going down.
Salci said that the actual subsidy per passenger has gone down for
the first time in the history of the agency to $2.69 per passenger.
He then covered
the financial situation of the agency. The bulk of the funding is
primarily federal and local funding. Seventy percent of the budget
goes to wages and benefits, and the only place left to cut in his
opinion is operations. The bus and Call-A-Ride system make up 76
percent of the costs of the system, but the region has also spent
more than $1.4 billion in investment in rail over the last 15 years.
If he has to cut service, it will be a 10 to 1 cut - bus to MetroLink.
Salci believes these cuts would devastate the system.
With regards
to the Cross County project, the project is on track to beat its
scheduled opening of Oct. 31, 2006. Several facilities contracts
are wrapped up or will wrap up in the next several months. Only
a few will extend into the first quarter of next year. LK Comstock
is working around the clock to install the track, wire, and electricity.
Originally they had a 30 month contract which has been reduced to
14 months. Metro will be opening the Forest Park Parkway in segments.
With all that
being said, Salci reported that the financial situation of the agency
does not look good. Metro has a balanced budget for FY06, but in
FY07 Metro is facing a $5 million deficit which jumps to $28 million
the following fiscal year. The deficit jumps in FY08 due to GASB
45 requirements which add a cost of $11 million and then fully adding
in the cost of operating the Cross County extension in FY08. He
said that the biggest problem is that the fundamental policy of
funding transit in the region has not changed. No one has ever dealt
with the operating deficits. Currently what Metro receives from
the State of Missouri is a wash after paying the motor fuel tax
and paying the State $350,000 a year to monitor the operations at
Metro. On the other hand, Illinois pays $60 per person for transit
investment in contrast to Missouri at $1.16 per person. The FY08
budget has to be balanced by April 2007. Without a new source of
revenue, cuts would be devastating to the system. A new quarter-cent
would raise $46 million annually in new revenue - $16 million for
maintenance, $10 for bond repayment, and $5 million for inflation
leaves $15 million in new money. This is not enough to expand the
system.
Salci said
that the majority of new projects funded at the federal level have
a 50:50 match - 50 at the local level and 50 at the federal level.
This is why an additional ˝ cent tax sooner than later is imperative
to keep the system operating and expanding.
|
The
Federal Reserve releases questionable report about light rail
The St. Louis
Federal Reserve published a deeply flawed article by Thomas A. Garrett
in the "Regional Economist" entitled "Is Light Rail a Boon or a
Boondoggle." Channel 2 picked up on the article as did David Nicklaus
of the Post-Dispatch.
CMT is organizing
well-reasoned responses to these articles from economists
as well as letters to the editor and other media.
To view a copy
of the article, please
click here.
Critics
refute the arguments presented by the Federal Reserve Bank.
Also, here are some responses to the article that were submitted
to the Post Dispatch:
Dear Editor:
Not long ago
the Federal Reserve Banks ignored the value of families and the
environment in their economic models. Now this same cherry-picking
approach is being applied by Fed St. Louis to show us all that MetroLink,
despite its fantastic success, is really a mistake.
How's this
done? Easy! (1) Highlight light rail costs; (2) selectively admit
that auto-roadway costs are artificially low while insufficiently
tabulating the real costs; (3) posture that public transit is mostly
about the poor who'd be better served with buses, cabs, or even
free cars every five years for MetroLink's costs; (4) turn truth
on its head by claiming that light rail is a self-serving special
interest boondoggle when, in fact, the road lobby--the most powerful
well-healed political force in American history, profits from continued
paving and sprawl anyway they can get it, including toll-gates at
the end our driveways. (5) Finally, never mind that when all costs
are considered, a well-planned light rail system will deliver more
passengers at less cost per mile during peak hours, when it is needed
most, than any comparable roadway project-and do it without delays
and far less "externalities."
Then, cultivate
a business columnist willing to regurgitate creative accounting
to make bad scholarship credible and it's done!
David D. Dobbs
Publisher www.lightrailnow.org
Live
near public transit and get more home for your dollar
Thinking
of buying a new home? Think about buying one within a quarter
mile of a bus stop and within a half mile of MetroLink stop and
see how much more you can get for your dollar.
Under the new
Smart Commute Initiative launched in St. Louis on Oct. 28, residents
of St. Louis City and County and St. Clair County can get $200 to
$250 more in monthly income credit for buying a house near public
transit. The extra credit allows applicants a better chance of getting
loan approval, and others will be able to borrow more money, as
much as $50,000 more in some cases. The maximum loan amount under
the program is $333,700.
For someone
making $40,000 a year, the Smart Commute program could mean the
difference between a $162,000 purchase price and a $172,000 purchase
price considering several assumptions including no monthly debt,
a 6.5% interest rate, 3% annual taxes and insurance and sufficient
saved funds to cover the closing costs.
“The Smart
Commute Initiative is an excellent opportunity for individuals to
realize great savings and build wealth by living near MetroLink.
Not only can home buyers get extra credit towards a home loan, they
may be able to reduce the number of cars they own which would be
a significant cost savings annual. By living in an area accessible
to public transit, the savings on home loans, car expenses and better
quality of life are enormous,” said Thomas Shrout, executive director
of CMT.
“Studies have
shown that some people are spending more on transportation costs
than they are on housing. By taking advantage of public transportation,
people can reduce auto ownership and put that savings into building
wealth though home ownership,” Shrout added. “I know, I got rid
of a car four years ago and figure I save $6,000 per year.”
Don't miss
the CMT Living Near MetroLink Series.
|
