By Steve Hymon, March 4, 2014
The above graphic is certainly worth a look. It shows the amount of federal New Starts money received by Metro on an annual basis since 1993. New Starts is a federal program that helps local transit agencies pay for big, expensive projects and most of the money shown above went to the existing Red/Purple Line subway and the Eastside Gold Line.
The graphic is also missing a critical piece of good news. President Obama’s proposed transportation budget for fiscal year 2015 (which begins Oct. 1, 2014), which was announced today, includes $100 million for the Regional Connector and $100 million for the Purple Line Extension. If the budget is approved by Congress, the $200 million in New Starts money for Metro would be the most received in any given year.
The $100 million for the Regional Connector is part of the eventual $670 million in New Starts money that the project will receive. That was the big news a couple of weeks ago when Metro and the U.S. Department of Transportation finalized the New Starts deal. A similar deal for $1.25 billion in funding for the Purple Line Extension project should also be completed soon. Both projects are also drawing on funds from Measure R, the local sales tax increase approved by Los Angeles County voters in 2008.
Stepping back, let’s look at the big picture. The Connector and Purple Line Extension also plan to use federally-backed TIFIA loans that will help Metro get lower interest rates than if they borrowed money for construction at market rates. That’s significant because it shows the degree to which the federal government under President Obama is getting involved in helping local areas build transit. It may not all be grant money — i.e. money Metro doesn’t have to pay back — but the loans still help Metro take on less debt and thus spend less on already pricey projects.
The loans are part of Metro’s America Fast Forward [AFF] proposal that has found its way into President Obama’s proposal for a multi-year transportation funding bill. AFF would expand the loan program and also create federally-subsidized bonds that local agencies could use when building projects. And that’s what I want readers to understand: the loans, the bonds, the New Starts money and Measure R combined — that’s the big kahuna here, folks. Those four things together give Metro the resources to build the expanded transit network many readers here want.
Finally, and on a very related note, I wanted to pass along a thank you from Metro officials to President Obama and Senators Barbara Boxer and Dianne Feinstein for helping Metro secure the federal funds and advocating for expanded transit funding in Los Angeles and other cities across the nation.