The Virginian-Pilot
©
NORFOLK
The spending of millions of taxpayer dollars to build and operate light rail "isn't something that's justifiable," said James Koch, an economist and former president of Old Dominion University.
Koch examined the $338 million light-rail line as part of ODU's annual State of the Region report, released Wednesday. The cost of the starter light-rail line in Norfolk is not in line with the benefits, he said in an interview.
"The numbers are sobering," Koch said. "They are depressing, in fact."
His conclusions are based largely on the projection that light-rail fares will not come close to covering operating expenses. Koch said that generally fares account for 20 percent of rail operations; Hampton Roads Transit's preliminary numbers show fares covering 10 percent of the approximately $14 million annual operating budget.
"I'd really like to see it succeed, but it will require a tremendous subsidy," Koch said.
HRT President and CEO Philip Shucet had not read the report but noted that all public transportation, from buses to roads, is subsidized.
"Obviously, the local government, the state government and the federal government feel the project is viable," he said. "There was a rigorous evaluation process and it was approved for funding."
Federal money accounts for about half of the construction costs while the state and Norfolk are each contributing about 25 percent. Norfolk will pay about half of the operating costs, with state and federal money covering the rest. A federal grant halves the city share the first two years.
Two scenarios could change the cost/benefit ratio, if gas prices rise enough to move commuters from their cars to light rail; and if the rail is expanded to reach more people.
The rail line, scheduled to open in May, stretches 7.4 miles from the medical complex on Brambleton Avenue through downtown to the city line at Newtown Road.
"People don't flock to Newtown Road to do lunch," Koch said.
Koch's remarks were more critical than the published report, which states that "the overall efficacy of light rail is mixed at best."
Debbie Messina, (757) 446-2588, debbie.messina@pilotonline.com
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Not About Money
It's not about money. Roads don't make money either. They drain taxpaysers wallets due to constant repair. I for one am sick of seeing orange barrels blocking off roads that were just built, just repaired, just reopened. What is it about? Quality of life. unless you're into sitting in traffic, mass transit systems have always been the way to go.
Light Rail and other countries.
How is it that China, India and other nations can build sucessful rail roads and we can't get one running. It isn't the rail system it is the people. We were brain washed in the 50's when the big three bought up all the trolly car companies so people were force to buy cars. Since that day nobody wants to be inconvienced by having to wait even a minute for anything. We are a nation going backward.
Light rail vote
Sorry, we were not brain washed in the 50s. Light rail stopped in Virginia Beach in 1947.
There were not enough people who wanted to ride it.
Tahnks
Thanks, Dr. Koch, for chiming in now. You'd make a great politician!
Odu expertise?
Isn't this the same group who have been pouring $$$s into a non-functioning MAGLEV project that still hasn't got off the ground? (Figuratively AND literally)
i said the same thing yesterday
You're right on the money. What a waste of time and resources and they want to preach about the light rail with a failed project in their own back yard. I was s student there and remember when they announced that students would be able to ride it from one end of campus to the other, now it just sits there wasting space.
Hopefully Norfolk's will
Hopefully Norfolk's will abandon light rail like ODU abandoned the mag-lev so we don't get stuck with the operating costs year after year.
The solutin is expansion
As noted in this article and in the Stte of the Region report, the cost to taxpayers of operating the TIDE will decrease as tracks lengthen and stations get built. Instead of writing off light rail because "it doesn't go anywhere," lobby to have the new lines to NOB, Little Creek, ORF and the Oceanfront built. Are all you light opponents so lacking in imagination?
Plus, Shucet ridiculously understates the reality when he says in this article that roads and highways are government subsidized. public, nontoll roads and highways are 100% paid for by taxes and other revenues collected by governments.
Good Commercial Showing Lately
When you find yourself in a hole, stop digging.
LRT...A Black Hole for Taxpayers
The Metro in DC is in the red and their lines go everywhere. Charlotte's light rail is not making money. San Francisco's system is fighting cost overrun's. New york City's subway is losing money, for heaven's sake.
Mass transit system's, be it underground or above ground, are not money makers and require continual subsidies no matter what city they are in.
We cannot afford to maintain the roads...I don't mean building new ones, I mean just everyday maintenance. The question needs to be asked: Considering the overall economy of this area, are we spreading ourselves too thin? The money comes from one source...taxes. And those tax dollars must support education, fire and safety, public health, libraries, transportation, housing, and other infrastructure, etc. Where are all these tax dollars going to come from when all anyone hear's is "cut taxes"?
If progressive growth is the goal...the light rail alone is not going to be the answer....and maybe, just maybe...some of us are interested in quality not quantity. There are plenty of thriving cities across this country that are doing just fine, thank you, without a black hole called light rail.