St. Louis Construction News and Real Estate (CNR)

December 1, 2008

St. Louis Derailed in Nationwide Mass Transit Surge

The mass transit train left the station on Nov. 4 with the passage of billions of dollars in mass transit issues nationwide. But St. Louis was left standing at the turnstile  with the failure of Proposition M.

Voters across the country have again signaled their support for transportation-related investment, the  The Center for Transportation Excellence ,a non-partisan research group based in Washington, D.C., reported. 

Voters approved more than $75 billion in funding for transportation. There were 32 measures on ballots from Rhode Island to Hawaii and 14 states in between. More than 70% of measures were approved in favor of transportation, demonstrating the willingness of voters to invest in expanding choice, improving performance, and increasing competitiveness. The projects still face financing problems posed by devestated bond markets. But transportation association executives and consultatnts indicated that recent pain-at-the-pump has moved the will of voters  in most parts of the country solidly behind mass transit issues.
Metro train

Since 2000, approximately 70% of all transportation measures have been approved, a rate double that of ballot measures generally.  Of 23 approved measures, 14 increased sales taxes, four provided funding through property taxes and three authorized bonds. One measure, a one-eighth cent sales tax increase in Santa Clara Valley, California is still too close to call. In total, yesterday voters approved more than $75 billion in new investment for transportation.  The continued success of transportation ballot measures is especially noteworthy this year considering the on-going economic challenges facing the nation.

Included in the  approved measures were :

Arkansas: $130,000/year for five years to establish a Jonesboro transit agency.

California: $10 billion for San Francisco-Los Angeles high-speed rail; $40 billion over 30 years for Los Angeles County projects, $45 million/year for Sonoma-Marin rail projects.

Colorado: $38 million of bonds for bus rapid-transit system in Aspen

Hawaii: Start of a $3.7-billion, 20-mile light-rail line in Honolulu.

Kansas: Three sales taxes for streets and public transit in city of Lawrence.

New Mexico: $19 million/year in tax revenue, half for New Mexico Rail Runner Express.

Rhode Island: $87.2 million of bonds for transportation, including $7.2 million for transit.

Washingtokn: $17.8 billion over 20 years for transit, including 34 new miles of light rail.

Wisconsin: 1% sales tax for $130 million/year to pay for various services, including transit.

A complete list of 2008 ballot initiatives is available at http://www.cfte.org. 

Following the failure of Proposition M,  Metro will have to cut service and increase fares in the spring. If St. Louis Metro's Prop. M had passed. it would have increased the sales tax rate in St. Louis County by half a cent, and triggered a quarter-cent increase in St. Louis city, which together would have generated about $80 million a year for the agency. Half of that money would have been for operating funds, while the other half would have been set aside for future expansions of MetroLink.

Facing an operating deficit of $50 million next year, the most likely course of action, based on staff recommendations, is:

  • Fare increases to take effect Jan. 1, 2009;
  • a major cutback in service in April 2009;
  • and more fare increases to take effect in July 2010.

The transit agency is looking at elimianting bus service beyond I-270 and cutting  some low-use bus routes, as well as eliminating lunch-time free zones downtown for Metrolink and sporting events. Elminating Metrolink service after 8 p.m., which had been considered, is now off the table.