Houston Metro’s expansion is getting a $200 million boost in Obama’s budget request to Congress. The money for the North Corridor and the Southeast Corridor projects is $50 million more than the $150 million set aside by Obama in his last two budget proposals.
The Metro project is part of a wider bid by the administration to upgrade transportation infrastructure nationwide so that 80 percent of Americans have “convenient access” to a high-speed passenger rail system within 25 years.
Metro is pretty happy about this as you can see in their press release. This isn’t the final budget, of course, and much can happen between now and its adoption, but this is a reminder that the President considers transit to be a priority, so just because some Republicans want rail defunded doesn’t mean it will happen.
I should add that I had the same opportunity that Neil and several other bloggers had yesterday to visit with Metro board members (Board President Gilbert Garcia, board member Christof Spieler, and board member Allen Watson), CEO George Greanias, and numerous other Metro folks at the Rail Operations Center. It’s an impressive facility and deserves a post of its own, but I’m bringing it up here because I had the chance in the conversation we had to clear up a couple of things from this story. One is that the money being appropriated for the North and Southeast lines counts towards the $900 million New Starts grant for those lines, though the full funding agreement is still pending the rebid process for rail cars (for which notice went out over the weekend, according the Greanias) and some other procedural matters; if all goes well, it should be in hand before the end of the year. You don’t get the full grant all at once, you get it in portions as you proceed with construction, with the last check usually coming in after completion. Having the full funding grant agreement means you’re not subject to the whims of the appropriations process, but the fact that Metro got even more money from that this time around is a strong sign they’re back in the FTA’s good graces. And now we have some confirmation of that.
Federal Transit Administrator Peter Rogoff said this afternoon that the Obama administration would not have proposed $200 million for Houston light rail projects “if we didn’t feel like we were getting to the finish line.”
Last year, the city of Houston replaced five of the nine Metro board members, who in turn brought in new CEO George Greanias. Rogoff called the FTA’s communications with Metro “honest, straightforward, productive dialogue.”
“They have been very willing partners in rectifying the problems that we identified in our audit,” Rogoff said. Metro canceled the contract with the Spanish firm and is preparing a new procurement plan for FTA approval.
Metro has proceeded on the two rail lines at half speed as it awaits the full funding grant agreement. Rogoff said he expects that agreement to be finalized by the end of fiscal year 2012 but would not be more specific.
That’s genuinely good news and a testament to the hard work they’ve been doing at Metro since Greanias and the new board were put in place. Hair Balls has more.
The President’s budget, while it contains a lot of funding for transit projects, does not have anything to do with the University line, which has been qualified to receive funding but has not gone through the competitive process yet. In addition, Congress must authorize the next transportation bill before there is any further funding for New Starts. That’s where things could potentially get dicey with the slash-and-burn elements of the Republican Congress. That said, Houston Tomorrow notes that US Transportation Secretary Ray LaHood is optimistic that Congress will pass a “sweeping bill to authorize funding for road and transit” by August. So we’ll see.
Overall the transportation budget has some good things, like an emphasis on safety and a prioritization of repairs to existing infrastructure, but it avoids the question of paying for it with an increase to the gas tax. That’s a discussion that really can’t be avoided.
Oh, and one more thing: Remember that settlement with CAF, the Spanish rail car builder that the old Metro violated Buy America with? Metro was to receive $14 million from CAF as part of that settlement. Greanias told us that as of that morning, the funds were now sitting in Metro’s coffers. So again, it’s been a pretty decent week for them.