Trimess

Wednesday, August 10, 2011

TRUE OR FALSE?

I can say with complete confidence that our budget problems are not and have not been caused by light rail expansion. Every rail project has come with its own new operating revenue through payroll tax increases to support new service and capital investments  Legislative changes to the payroll tax in 1981 and 1990 extended the payroll tax to include the self-employed, state payrolls and municipal payrolls. In 2004, the legislature gave us authority to raise the payroll tax rate over a 10-year phase-in and recently authorized that again for when the economy rebounds.  
I’d also note that MAX service has been and continues to be our most efficient mode when you measure operating cost per rider. As you know, light rail allows us to operate very efficiently in concentrated corridors. Our cost per ride for PMLR is expected to be around $1.50. Our bus service costs are close to $3.21 per ride. Carrying more customers for less helps stretch our resources. The upshot is that all of our rail projects have come with new revenue to support operation and debt service and over time have brought us more ridership and revenue.

New revenue to support service? Huh? Debt service? Huh? This is bullshit. I'm glad they have chosen to ignore the costs of putting in the rail when calculating cost per ride.

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