A letter sent yesterday to the regional administrator of the Federal Transit Administration by Cascade Policy Institute President John A. Charles, Jr. claims that TriMet is violating Sections 2(d) and 12(b) of its Full Funding Grant Agreement (FFGA) with the federal government on its South Corridor I-205/Portland Mall light rail project.
According to Charles, TriMet’s Green Line service is 33% below what the agency originally planned for, yet the FFGA “requires the transit agency to successfully operate the light rail line and the rest of the transit system after the project opens for revenue service.”
TriMet has repeatedly claimed that the reductions of service on the Green Line and throughout the entire system during the past two years are the result of declining revenues caused by the recession. However, Charles points out that since TriMet’s payroll tax rate was first increased by the legislature in 2003 (and implemented in 2005), TriMet’s annual payroll tax revenues have increased by 34% and total general fund dollars by 44% (inclusive of revenue expected in the draft FY 12 budget).
Moreover, during the 2005-2010 period, TriMet took in $60.3 million in new tax revenue but spent only $13.9 million on operation of the Green Line, in violation of its contract with the FTA. The Green Line was subsidized with $345.4 million in federal capital funds.
Charles requests that the FTA take steps to enforce the terms of the contract by requiring that TriMet operate the Green Line at 100% of the originally planned service levels, “or pay back one-third of the total federal grant funding used for capital construction.”
Cascade is also asking that “until one of these actions takes place, FTAwithhold all capital funding for future TriMet rail projects, including but not limited to the $1.5 billion Milwaukie light rail line and the $932 million rail extension to Vancouver, WA.”
Click here to read the full letter to FTA.