by James A. Bacon
Eleven Virginia legislators from Northern Virginia say they would block any “new dedicated funding stream or tax increases” to fund Metro repairs expected to cost $60 million.
“We cannot in good conscience ask Virginia taxpayers to bail out years of mismanagement, negligence and wasteful spending,” stated a letter signed by House Majority Caucus Chairman Timothy Hugo, House Majority Whip Jackson Miller, Del. David Albo and Del. James LeMunyon.
Washington Metropolitan Area Transit Authority Chairman Jack Evans called the letter “ludicrous.” Channel 4 Washington quotes him as saying, “The fact of the matter is, Metro has a $300 million operating shortfall, an $18 billion capital shortfall and a $2.5 billion unfunded pension liability. And we have to address it some way.”
Wrote the legislators:
Virginia has more than met its funding commitments to WMATA. In 2007, Virginia committed $50 million per year for 10 years to fund capital improvements for Metro. In 2013, the General Assembly passed legislation to increase funding for transportation, providing $300 million for the construction of the Silver Line and generating about $80 million per year for the Commonwealth’s Mass Transit Fund. The General Assembly also provides an annual operating subsidy to WMATA of about $100 million, Virginia has delivered over and over again.
The solution to funding Metro’s safety needs and on-going operations lies internally. WMATA’s financial problems are, in our view, largely self-inflected. Metro must get labor and operations costs under control. WMATA’s labor cost increases in recent years have exceeded ridership increases and …. benefits for WMATA employees are significantly than the norm among big city transit agencies. WMATA also has a $2.5 billion unfunded pension liability.
Bacon’s bottom line: The legislators’ numbers don’t include subsidies from Arlington, Alexandria, Fairfax County and Falls Church, or revenues from the Tysons special tax district and toll increases on the Dulles Toll Road to help pay for completion of the Silver Line to Dulles International Airport.
At the end of the day, Virginia has no choice but to help bail out WMATA. A collapse of the flailing giant would cripple Northern Virginia’s economy. But Virginian legislators need to drive the hardest bargain they possibly can to bring accountability to the organization or it will become a veritable fiscal black hole. It looks like senior Republican lawmakers in the General Assembly are willing to bargain hard. I have every confidence that downstate legislators will back them up.
(Hat tip: Tim Wise)There are currently no comments highlighted.