Since voter approval of FasTracks in 2004, the likelihood of the Regional Transportation District fully completing the project by 2017 has greatly diminished.
While FasTracks has the potential to be a crown jewel for the community, RTD’s recent budget issues — combined with falling sales tax revenues — has provided genuine reasons to be concerned. Before RTD reaches into taxpayers’ pockets for another tax increase, the community should consider halting FasTracks altogether or explore the real possibility of transferring control to a more capable entity.
As Aurora Mayor Ed Tauer said last week, “Quite frankly, if RTD can’t build it and run it [by] doubling the tax, we have the wrong people at RTD.”
FasTracks and its seven new rail corridors and extensions are funded by the 0.4 cent increase in RTD’s sales tax that Colorado voters approved in 2004. Consequently, RTD receives one cent for every dollar in sales tax collected in Boulder, Broomfield, Denver and Jefferson counties, plus certain areas of Adams, Arapahoe, Douglas and Weld counties. Sixty percent of the sales tax revenues are allocated to RTD’s operating budget, and 40 percent to FasTracks.
RTD’s 2008 budget forecasted a 4.3 percent increase in sales tax revenue, but was later adjusted to a 2.5 percent increase. Unfortunately, the shrinking economy has resulted in further declining sales tax revenues for RTD. Consequently, RTD has frozen staff salaries for some 600 employees, implemented a one-year hiring freeze and reduced bus and light-rail service.
Of further concern is the expiration of RTD’s union contract with 1,900 drivers, mechanics and other hourly employees. Because the Department of Labor and Employment recently ruled that Amalgamated Transit Union Local 1001 is barred from striking, any unresolved issues will be determined by binding arbitration — a forum expected to benefit Local 1001.
The original 2004 budget for FasTracks was $4.7 billion. In 2008, that budget was increased to $7.9 billion. However, RTD estimated that the tax structure would only generate $5.8 billion by 2017, a shortfall of $2.1 billion. Recently, due to favorable commodity and construction prices, the FasTracks budget was reduced to $6.9 billion. But the sharp decrease in sales tax revenues has slightly increased the budget gap to $2.2 billion. In addition, RTD recently revealed it would need another $750 million to support the operation of the lines for 15 years beyond the 2017 completion date.
The future of FasTracks does not include adding more lines or improving service. Rather, RTD has proposed quite the opposite. This past summer, RTD conceded that it could not fulfill the commitments made to voters under FasTracks. Specifically, in order to complete the East Corridor, the Gold Line and the West Corridor, RTD acknowledges that it will expend the majority of the FasTracks budget. The remaining funds are insufficient to finish the Northwest line, the North Metro line and the I-225 line.
RTD faults the dramatic increases in the cost of construction materials paired with the decrease in sales tax revenues. Add to that environmental assessments, land acquisition costs and RTD’s continued negotiations with the railroad companies regarding the necessary rights of way for commuter rails and maintenance facilities. The reality is that there is a larger and long-standing issue with RTD’s management of the budget and scope of FasTracks. As one metro area mayor recently stated, “Whatever projection you guys [RTD] come up with is going to be wrong anyway.”
RTD is currently exploring modifications to FasTracks, including extending the completion date, doubling the current FasTracks sales tax and shortening three light-rail lines (i.e., the Northwest line, the North Metro line and the I-225 line).
Apparently, RTD overpromised and underpriced FasTracks. The completion of FasTracks under RTD’s direction is likely to result in more ballooning budgets and further deficits. There is simply little reason to trust that RTD will fulfill the commitments made to this community in 2004. Unless there are dramatic changes, communities that have diligently contributed millions of dollars in taxes to the project (e.g., Aurora, Broomfield, Boulder, Longmont and Thornton) will likely never see the promised rail lines and the corresponding economic and community benefits.
Perhaps FasTracks should be halted altogether or transferred to a more capable entity’s management. Since RTD appears unable to manage the current FasTracks budget and scope, why in the world should we trust that its promises become a reality?
Enough is enough.
Kevin E. Holst is executive director of the Colorado Freedom Coalition and a freelance writer on legal and public policy issues.
