- Streetsblog Los Angeles - http://la.streetsblog.org -
Metro Board Wrap: If Measure R Projections Are Down, What Happens to Projects When Funds Run Out?
Posted By Damien Newton On February 24, 2011 @ 12:30 pm In Expo Line,Gloria Molina,Metro,Uncategorized | 11 Comments
During today’s debate over whether or not to approve a “life of the project” budget for Phase II of the Expo Line, County Supervisor Gloria Molina used the occasion to quiz Metro staff on new projections for Measure R revenue. Originally, the half-cent county-wide sales tax was projected to produce $40 billion in revenue over thirty years. However, in large part due to the Great Recession and high local unemployment rates, that projection has dropped 10% in two and a half years to $36 billion.
So if the sales tax is coming in 10% lower than originally projected, then what happens to projects when Measure R funds run out. As Metro rushes ahead with “the 30/10 Initiative” many of those sales tax dollars coming in later years, closer to 2040 than today, would likely be used up when it’s time to construct projects at the tail end of the program? Metro staff didn’t really have a good answer, and neither does the Measure R Expenditure Plan  nor the authorizing legislation .
If Congress and the President move to make 30/10, or Fast Forward America, a reality then the projects funded on the back-end would be highway capacity expansion projects. Over $6.3 billion in Measure R funds are designated towards highway projects that have no timeline to begin, much less complete, construction. Included in that list is the highly controversial “710 Gap Closure,” a favorite project of Molina.
If no action is taken to accelerate transit projects, the last transit projects to be funded are the Westside Subway Extension and the Green Line Extension down to the South Bay Corridor. The total Measure R cost of these two projects is over $5 billion with $4.074 billion going towards the Subway. There is some irony that the project that would be most endangered would be the Westside Subway, which was the center piece of the campaign to get Measure R passed in the first place.
Other notes from the Board Meeting:
Article printed from Streetsblog Los Angeles: http://la.streetsblog.org
URL to article: http://la.streetsblog.org/2011/02/24/metro-board-wrap-if-measure-r-projections-are-down-what-happens-to-projects-when-funds-run-out/
URLs in this post:
 Image: http://la.streetsblog.org/wp-content/uploads/2011/02/Screen-shot-2011-02-24-at-11.12.29-AM.png
 Measure R Expenditure Plan: http://www.metro.net/measurer/images/expenditure_plan.pdf
 authorizing legislation: http://www.metro.net/measurer/images/ordinance.pdf
 plan to create a cost-estimate for the I-710 Tunnel Project: http://www.metro.net/board/Items/2011/02_February/20110224RBMItem2.pdf
 There was an update on the TAP Program: http://www.metro.net/board/Items/2011/02_February/20110224RBMItem3.pdf
 wide-ranging study of how Metro can continue to green their operation: http://www.metro.net/board/Items/2011/02_February/20110224RBMItem15A.pdf
Copyright © 2008 Streetsblog. All rights reserved.