Will HSR Become Just One of Many Unfinished “Pilot Projects”?

Jul 7th, 2010 | Posted by

Last week, while many of us were occupied with beating back the flawed ridership report, we got some bad news from Congress as well. The House Subcommittee on Transportation voted to fund only $1.4 billion for high speed rail in FY 2011, below the $4 billion they approved last year and below the $2.5 billion that was ultimately approved for FY 2010, although $400 million above President Obama’s proposed $1 billion amount. This came at the same time as the subcommittee increased highway spending by a whopping $4 billion above the president’s recommendation. The subcommittee also failed to properly fund Amtrak, including the investment in new fleet vehicles.

The National Association of Railroad Passengers slammed the move:

“When you have multiple objectives, it makes sense to give priority to programs that address them,” said Ross Capon, president of the National Association of Railroad Passengers. “We appreciate that the subcommittee has strengthened passenger train investment compared with the Administration’s budget request, but the rail levels fall short when considering the sharp growth in proposed highway investment and the public interest in promoting transportation that is energy efficient and environmentally benign and which gives Americans expanded travel choices that they want and need. Today’s action is the first step in a long process, which people interested in balanced transportation investment should work to influence.”

In short, Congress isn’t stepping up to lead the push for more HSR funding. Sure, many members of Congress wrote to the president in April to call on Obama to lead the push for a permanent HSR funding source, which he ought to do. But Congress needs to at minimum sustain the level of HSR funding approved in the 2010 budget for 2011 and future years. Moving backward like this, especially to waste more money on highways, isn’t a smart move – especially when 25 states submitted HSR funding applications, indicating nationwide interest in HSR money.

While we remain confident that we can get the money back later on in the process, it’s another sign of Washington D.C.’s failure to provide for long-term project development. Mike Signer writes about this over at the Huffington Post today, calling the US a “nation of pilot projects”:

That two solar plants are heralded as helping America “win the race for a clean economy” is the same pattern we’ve seen elsewhere in the collision between the clean economy campaign and today’s toxic budgetary and political environment. We saw the pattern in high-speed rail. As PPI’s Mark Reutter has noted, the administration announced $8 billion in stimulus funds that would go to a handful of projects. But without additional administration pressure, those funds are only being followed by $1 billion of congressional authorization. As 100 members of Congress wrote the president recently, “[G]iven budget constraints, we cannot continue to rely on general authorizations and appropriations to finance high-speed rail. We need to identify a dedicated revenue source for high-speed rail, and we need your help to do that.”…

The ambitions are noble and the rhetoric stirring, but the question is whether we really are shaping a future here — or just a set of ambitious but singular pilot projects.

Yes, there is too little money in annual authorizations for serious infrastructure. But as infrastructure expert Norm Anderson has recently written for PPI, “The financing issue — not a surprise for anyone in the infrastructure business — is the number one problem facing the industry.”

This is all the more reason the administration should follow the stirring rhetoric about competitiveness and “writing our destiny” by creating a new institution, such as an infrastructure bank of the type proposed by Sen. Chris Dodd (D-CT) and Rep. Rosa DeLauro (D-CT) and supported by the president in the past, that would create a long-term funding source and the energy for true national policy.

A national infrastructure bank would be an excellent solution to these issues, along with direct, long-term federal direct grant funding to HSR and other passenger rail projects.

The alternative is that the Obama Administration and the Democratic Congress will leave a lot of pilot projects across the landscape that were promising, but were never completed or never led to the kind of long-term infrastructure development because both the White House and Congress got cold feet because of misguided, Hooverite concerns about the deficit.

I’m still confident that Congress will eventually approve a long-term funding source for HSR. But this backsliding isn’t helping matters. We’ll need to redouble our efforts to ensure that Congress remains committed to finishing HSR, and not just tantalizing us with a glimpse of what could be.

  1. nobody important
    Jul 7th, 2010 at 17:54
    #1

    Even if we do create a national infrastructure bank, it will probably be watered down as hell just like healthcare reform and financial reform, just to pass through congress.

    BruceMcF Reply:

    It depends on how “big” the bill is. If its a streamlined bill, it is more likely to get through unscathed, though also more likely to not get through at all.

  2. future calling
    Jul 7th, 2010 at 22:19
    #2

    this country is boned. prepare for the painful, slow slide from second-rate to failed state.
    it isn’t just transportation or energy infrastructure, but every single aspect of modern existence.
    we don’t rise to the challenge, we don’t produce anything of export value anymore, and basically the only thing to come out of the last decade of united states productivity is a lot of PR and posturing.

    the blame falls on all of us, our neighbors, our progenitors.

    land of myopia.

  3. Missiondweller
    Jul 7th, 2010 at 22:28
    #3

    I agree that we need long-term funding for HSR projects nationwide. I fear, come November, we’ll have a very different Congress. You’re right to fear the results being orphaned pilot projects.

    What states need are a national structure for lobbying and gaining support and finances from both parties, as any long term source will require bipartisan support. Perhaps an infra structure bank is part of the solution, but ultimately, its demonstrating that HSR is an important part of our future in transportation.

  4. political_incorrectness
    Jul 7th, 2010 at 23:07
    #4

    Until an actual system comes online, we are pretty much like Japan with the Tokaido Shinkansen, with one major exception, the technology is developed and will work. However, it is the same in the sense that true HSR is a brand new concept to the US. The seeds have been planted, now it is a matter of getting over the financial hump in the road. I am not sure what it will take but a Republican take over of Congress will not help mass transit or high-speed rail.

  5. rafael
    Jul 8th, 2010 at 04:27
    #5

    For reference, the US is spending $5.5 billion each month on Afghanistan alone to prop up a totally corrupt “national” government that committed massive voter fraud to keep itself in power. Pallets full of US currency are leaving Kabul airport for unknown destinations every single day. These are the folks who enjoy the trust of the populace and will keep the Taliban at bay when ISAF wraps up?

    The Pentagon budget for 2010 is $693 billion, including war appropriations. That’s a whopping 42% of total federal spending, on top of gargantuan lifetime commitments to veterans.

    Meanwhile, one Republican Member of Congress has actually apologized to BP because Obama forced it to make $20 billion down payment toward cleaning up the worst oil spill in US history, one that independent scientists are still not allowed to analyze and independent journalists are still not allowed to report on properly.

    Democracy? Hah! More like “We the Fortune 500“.

    Missiondweller Reply:

    Wait, you’re saying federal spending is only $1.65 Trillion? Its actually $3.7 Trillion. The 2010 deficit is $1.6 trillion

    http://www.usgovernmentspending.com/year2010_0.html

    Though I too would like to see more funding for HSR, let’s not forget national security is a legitimate federal function. 9/11 (planned in Afghanistan) had an economic consequence of $2 Trillion not to mention the lives lost.

    http://www.iags.org/costof911.html

    BruceMcF Reply:

    But the majority of “national security” spending is for things like defending Japan from attack by Communist China (risking destroying its most important source of advanced machine tools), or protecting West Germany from attack through Communist East Germany.

    Most defense spending is not money needed to improve national security, its money needed to improve income security of defense contractors … including importantly the corporations profiting from the oustsourced support operations of overseas bases.

    Meanwhile, one of the country’s most glaring national security weaknesses is our dependence on imported energy, where building out the California HSR Stage One would be a more important investment than any number of F-35 fighters.

    BruceMcF Reply:

    Note that there are two different uses of the term “government spending”. The GDP category refers to final purchases of newly produced goods and services. Since about half of the consolidated federal government budget is transfer payments and functionally unnecessary interest payments, where the purchase of newly produced goods and services are done by the recipient, the GDP category is roughly half of the spending in the consolidated budget.

    rafael Reply:

    I’m not disputing that 9/11 generated extremely high costs, in terms of lives lost as well as financial.

    What I’m disputing is that ISAF has a snowball’s chance in hell of turning Afghanistan around. The Bush administration made such a hash of things that was virtually impossible when Obama took over and then he made things much worse by sticking with Karzai after he had completely rigged his own re-election. It’s the old Cold War maxim: he’s a son of a bitch, but he’s our son of a bitch.

    No matter what Gen. Petreaus does, six to twelve months after ISAF troops leave – and Western taxpayers stop bankrolling the Karzai government – the Taliban will regain complete control over large parts of the country and make inroads into Kandahar and Kabul. Might as well leave now rather than waste another 18 months and $100+ billion.

  6. Brandon from San Diego
    Jul 8th, 2010 at 05:11
    #6

    Well, I suspect the real answer to the decrease to $1.4 billion is that someone in Washington had done some research and figured out that a ready and realistic demand for funding was about that figure. Ya know, Washington also has an interest in not making too much funding available for fear that it all might not be requested, OR, requests might not meet certain criteria.

    rafael Reply:

    The $8 billion in ARRA was oversubscribed 7 times. Lots of states put in a lot of effort to submit applications that met the formal criteria defined by FRA. The demand is there, the hard part for states is to cough up at least 20% of the capital cost and to commit to long-term operating subsidies if need be (likely for systems with cruise speeds below ~125mph). The 100% federal match offered in ARRA was a one-off.

    California alone could and would apply for much more than $1.4 billion in federal funds if it were made available. The problem is that it is the only state that has volunteered state-level matching funds for federal dollars. Congress is wary of funding a national program that in effect boils down to a California program. In particular, the states on the NEC haven’t agreed on a joint strategy for upgrading that, last not least because each state has its own commuter railway distinct from the national Amtrak organization.

    The biggest issue, though, is a counter-productive and wholly political strategy of appearing to cut the deficit by cutting urgent investments in civilian infrastructure while blowing large wads of cash on land wars in Asia. I’m being quite literal here: each year, the US hands over about $1 billion in cold hard cash to corrupt government officials and tribal warlords in Afghanistan. And that is surely just the tip of the iceberg.

    StevieB Reply:

    States other than CA are having trouble meeting FRA requirements to upgrade existing infrastructure as reported in the High Speed Rail News article Is The High Speed Rail Program At Risk.

    Since virtually all the existing rail infrastructure in America is owned by private railroads, the ticket of admission to the federal HSR grant program has been the instrument of an operating “Stakeholder Agreement” that the prospective state grantees are required to sign with Class I railroads whose facilities they intend to use for passenger rail service. Execution of such an agreement (which also involves a service operator, such as Amtrak) is a condition of participating in the capital portion of the HSR program.Upset at what they regarded as excessive and unreasonable demands, burdensome requirements and an inflexible bureaucracy, these railroad executives seemed in no mood to accept unquestioningly the FRA dictates.

    adirondacker12800 Reply:

    In particular, the states on the NEC haven’t agreed on a joint strategy for upgrading that,

    They have at least twice and then Senators from states like California cut the funding for it and they die slow painful deaths for lack of money.

    Marcus Reply:

    Sometimes I wish we had a parliamentary system like most other Democracies and the party in power or governing coalition could just push through it’s agenda without pandering to a huge host of parochial interests.

    Peter Reply:

    Having grown up in Germany, I used to think so myself, but parliamentary democracies can run into the same type of governmental lockjams. Just look at the rifts in the governing coalition in Germany. The current center-right coalition government was seen by some as the Perfect Storm to reform Germany, but they’ve now begun bickering over basic policy.

  7. Brandi
    Jul 8th, 2010 at 20:04
    #7

    What are the legitimate chances of the funding level getting upped to the level of 4 Billion which was requested by the house last year? I think this post really sums up what will probably happen. These will just become pilot programs. I mean the only place that actually might get a functioning true high speed rail systems might be Florida and California. Crazy to see the money dry up already especially when we have a Democratic congress. If the majority changes I hate to say it but its over. As much as I don’t want it to be, congress is obsessed with roads. They continue to increase money to highways. With the prospects of a climate and energy bill and long-term transportation bill looking dim, I’m going to be pessimistic and project America chooses to stay in the dark ages. Interesting to see to how many states are shying away from high speed rail as they now need to put down 20%. I mean I understand the fiscal crisis they are in but they don’t seem to be cutting back on roads.

Comments are closed.