It’s no secret that major construction projects locally and nationally have been impacted by record-setting increases in the price of construction-related materials like copper, steel, concrete, fuel and labor.
From 2003 to 2004, when the FasTracks budget was being finalized, the Colorado Construction Cost Index increased by only 3 percent. In 2005, the year after voters approved FasTracks, that same cost index jumped by an incredible 52 percent — in just one year. Since then, costs for construction items have continued to climb much faster than overall inflation rates.
At the same time, sales and use tax income, the Regional Transportation District’s largest revenue source, is about 5 percent below projections as the economy continues to tighten.
In response, RTD is forced to consider changes to how we deliver the FasTracks program. Exactly what those changes might entail has yet to be determined, but rest assured, whatever might be considered, the RTD Board of Directors will be reaching out to the voters who approved FasTracks to ask for your input and support.
We have heard loud and clear from our constituents throughout the district that they want the FasTracks plan delivered as soon as possible and they do not want lines shortened. We receive numerous inquiries about where the next set of investments should be built. People want more, not less.
Please remember that RTD has a great record of delivering transit projects despite budget and logistical challenges. Two years ago, RTD opened the Southeast light-rail line two years ahead of the original schedule and within budget. This was RTD’s fourth consecutive light-rail project built on time and within budget, and each has exceeded its ridership projections. Amazingly, RTD has today already surpassed light-rail ridership projections for 2020.
As energy prices continue to climb, it is clear that the FasTracks program is needed today more than ever, just as additional transit infrastructure investments are needed nationwide. Our long-term national security interests and need for nationwide connectivity are more essential today than ever. As petro dollars continue to flow out of this country in increasingly large sums, our security is further compromised and the strength of those who would do us harm is enhanced.
The RTD Board of Directors is firmly committed to working with staff in solving these financial issues and delivering the FasTracks program to area residents. Remember that while the current budget challenges will be relatively short-lived, the FasTracks program is an investment that will continue to deliver positive returns for the next century and beyond.
Lee Kemp is chairman of the Regional Transportation District’s Board of Directors.
