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Independence:goodpublicpolicy–andstatutorilymandated
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1. yourappointmentofan“AccountabilityOfficer”
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3. anirregularInspectorGeneralinvestigation
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Ayearofnoisydistractionfromtherealproblem
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Theunfulfilledpromiseoffederalleadership
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AddressingtheSilverLine’sfundingneeds
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1. FederalgrantfundingforPhase2
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2. increasingVirginiagrantfunding
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MetropolitanWashingtonAirportsAuthority
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Washington Post Opinions
At last, Northern Virginia’s elected officials have gotten what they wanted. The
Metropolitan Washington Airports Authority has acceded to U.S. Transportation
Secretary Ray LaHood’s request to change the original Dulles Metrorail project
alignment — an alignment agreed to just four years ago by all parties — and to build an
inferior station at Dulles International Airport. Unfortunately, getting what they wanted
won’t fix the real problem facing Northern Virginians.
That’s because the problem confronting Dulles Metrorail is not the project’s cost but high
tolls. As the airports authority has repeatedly demonstrated, a world-class underground
station at Dulles would increase the cost of using the Dulles Toll Road by no more than
10 percent. Irrespective of which airport station is built, Dulles Toll Road drivers will be
paying a double-digit toll for a trip less than a decade after Dulles Metrorail is completed.
Under the current funding plan, almost 100 percent of the cost of Phase 2 of the Dulles
Metrorail project is to be paid from local sources: one-fourth from Fairfax and Loudoun
counties and the airports authority, and three-fourths from Dulles Toll Road revenue.
There is no state grant assistance. There is no federal grant assistance.
No other transit megaproject in the United States is 100 percent locally funded. In fact,
most have combined state and federal assistance of at least one-third of costs.
It should hardly be a shock, then, that the tolls needed to support Dulles Metrorail will be
eye-popping. To be sure, the secretary’s process, by reducing Phase 2 costs (and shifting
$400ௗmillion of costs to Fairfax and Loudoun), will have some mitigating effect on tolls.
But even at the $2.8ௗbillion cost the secretary has found acceptable, today’s $2 toll is
projected to be $13 in 20 years, $17 in 30 years.
Though tolls are the real issue, the discussions in the secretary’s conference room focused
almost exclusively on project costs, and particularly on the Dulles station. The Dulles
underground station has made for great political theater — big dollar number, easy to
understand, easy to ridicule.
But now the time for political theater is over, and it’s time to build the project — and
squarely and honestly address the problem of high tolls.
The cost reduction and cost-shifting directed by the secretary was a valuable first step in
controlling toll increases — but it was only a first step. What Dulles Metrorail needs now
is meaningful participation by the U.S. Department of Transportation and by Virginia.
The airports authority has requested a substantial loan from DOT’s Transportation
Infrastructure Finance and Innovation Act (TIFIA) program, which would have a
profound effect on toll rates. The popular program is oversubscribed, so the competition
for TIFIA loans is fierce. But the airports authority has offered to pay the “credit subsidy”
— a cost akin to a mortgage origination fee that is normally picked up by the federal
government — so that its request could be granted without crowding out other worthy
applicants. In the past, the department has accepted such payments from TIFIA
borrowers, but it has refused the airports authority’s offer.
Instead, DOT has decided to provide TIFIA assistance to the counties for the
privatization of the Metrorail parking garages. Perhaps the department thought TIFIA for
these projects would make it easier to persuade Fairfax and Loudoun to swallow the
additional financial burden, although it’s not clear that developers in wealthy Northern
Virginia need federal support or that these two wealthy counties need federal help in
attracting private developers. But whatever the reasons, DOT’s bottom line is this: Yes to
federal assistance for private parking garage developers; no to federal assistance for
Northern Virginia’s heavily burdened toll payers.
Virginia’s representatives were perhaps the most vocal participants in the meetings with
the secretary. They were relentless advocates for cost reductions. But other than pounding
the table for lower costs, Richmond had little to offer Northern Virginians.
After much tugging and pulling, Virginia seems to have agreed to inject $150ௗmillion into
this $3ௗbillion project (though the governor is reluctant to give a firm commitment even
for that puny amount). Yet the state has no reluctance to make hefty contributions to
other large state projects.
The day after the airports authority voted to change the airport station, Virginia
announced that it would provide approximately $400ௗmillion to the $2ௗbillion midtown
tunnel project in Norfolk — for the explicit purpose of reducing toll rates. Virginia also
has injected $400ௗmillion into the $2ௗbillion Beltway HOT lanes project (which got a
$600ௗmillion TIFIA loan). Both of those projects are privatized.
Most Northern Virginians want Dulles Metrorail, for both the transportation service it
will provide and the economic development it will stimulate, and are willing to contribute
to its cost. But across Virginia and around the nation, other communities are getting
major state and federal support for transportation infrastructure. Once they begin paying
double-digit tolls, Northern Virginians may wonder why the federal government and their
own governor are leaving them to fend for themselves.
The writer chairs the finance committee of the Metropolitan Washington Airports
Authority board of directors.
State Funding for Virginia's Major Transportation Projects
Downtown Tunnel
495 Express I-95 HOV/HOT
Dulles Metrorail Midtown Tunnel
Lanes MLKing Expressway Lanes
STATE FUNDING
($millions) $177 $173 $350 $409 $408 $297
% of total project cost 6% 6% 6% 21% 28% 26%
SOURCE OF STATE $51.7M of grants $23M VTA 2000 Commonwealth has Commonwealth $97M VDOT grant for
FUNDING from Virginia spent on early contractual commitment to contributed $308M at early construction
Transportation design and provide grant funds for financial close. CTB activities and $200M for
Act of 2000; $150M pursuant work on specific provided another $100M at transit and parking
$125M to U.S. DOT interchanges over a five Governor's request to improvements associated
Commonwealth MOA. The year period (subject to delay tolling until January with the project. Initial
Transportation $150M is General Assembly 2014. Funding sources advance of $45M from the
Bonds anticipated to be appropriation, CTB are $350M of GARVEE state's Toll Facilities
funded from the allocation, and no contract bond proceeds and an Revolving Account may be
proceeds of defaults) advance from VDOT's Toll repaid from GARVEE bond
Capital Projects Facilities Revolving proceeds.
Revenue Bonds Account that may be
issued by the repaid from Hampton
Commonwealth. Roads District
maintenance funds.
* Phase 2 cost estimate based on 100% Preliminary Engineering. The amount includes $404 million for the Route 28 Station and the five Phase 2 parking
garages that Fairfax and Loudoun County have agreed to use their best efforts to fund from other sources.
** Total amount of state funding does not include $75 million of Commonwealth Interstate Maintenance funds and funds allocated to Virginia under the federal
Surface Transportation Program that were "flexed" to the Rail Project through the FTA's Section 5307 Program.