Charlotte success?

Charlotte’s light-rail line was originally projected to cost an estimated $225 million in 2000. The final cost of the completed project in 2007 was $467 million. Even after adjusting for inflation (2000-2007), that’s a 75% cost overrun. And now they are expanding with billions for the Blueline Extension (BLE) FEIS / DEIS

Charlotte First In Worst Traffic In North Carolina 9/1/2015

Citizens attempted to repeal the sales transit tax, but were ultimately defeated after citizen’s campaign was outspent 50:1 by corporate vested interests (like Duke Energy, Wachovia now Wells Fargo, Bank of America, McDonald Transit Associates, Parsons Brinckerhoff, and Siemens). An additional twenty major businesses contributed, all of whom profit from CATS operations according to former city council member Don Reid.

CLT_LYNX

The Charlotte Lynx daily ridership has stagnated 16,000 daily boardings over the last 7 years while the area’s population grew 17%, having no net effect on reducing traffic congestion. Even accounting for ‘choice riders’ those who would give up their cars in favor of Lynx, the changes in gasoline prices has had no effect on daily ridership.

CLT_gas_prices

Despite the high costs and low ridership, CATS wants more rail — but doesn’t have any money to pay for it. So it has rolled out a campaign of declaring the light rail a great success, especially in the field of economic development. Of course, in most cases it was the subsidies, not the rail, that stimulated the development, and most likely the development would have taken place somewhere in the region anyway, though perhaps not in that corridor.


“Charlotte … perform(s) particularly bad. These systems do not have enough riders to produce the economies of scale that make transit provision by rail significantly less expensive than bus.”
SOURCE: UC Berkeley Urban Densities and Transit: A Multi-dimensional Perspective


“Future expansion includes plans for light rail, streetcars and bus rapid transit along the corridors in the 2030 Transit Corridor System Plan adopted in 2006 by Metropolitan Transit Commission (MTC). Although build-out of the entire system has been estimated for completion by 2034, by 2013, the Charlotte Area Transit System stated it would likely be unable to fund future transit projects apart from the Blue Line Extension, scheduled to begin construction in early 2014.

Charlotte facing additional tax revenue shortfalls

CHT_LRT

The Charlotte plan to address the current $22 million budget shortfall includes: Tax-rate increase & service cuts including:

  • closing 311 information service on weekends & holidays
  • resurface about 16.5 fewer miles of streets a year
  • budget cuts for Police and Fire
  • eliminate more than 100 city jobs

In addition, Carlee and his staff, along with the mayor and City Council, have been grappling with unanticipated shortfalls in tax revenue as well as a proposed change in sales-tax sharing that, according to state and city projections, could cost Charlotte an estimated $3 million to $30 million annually.

“On May 6, 2013, a 30-member transit funding task force released a draft report in which they estimated it would cost $3.3 billion to build the remaining transit corridors, and $1.7 billion to operate and maintain the lines through 2024. To fund the build-out by sales taxes alone would require a 0.78 cent increase in the sales tax, which would need to be approved by the state General Assembly. The committee recommended any sales tax increase be limited to 0.5 cent and other methods used to raise funds; In July 2015, CATS reported it lacked the funds to support any future transit projects apart from the already budgeted 2.5-mile long Phase 2 segment of the CityLYNX Gold Line.”


CityLYNX Gold Line facing City budget cuts!
The $75 million the Charlotte City Council approved in 2014 to fund
half the cost of constructing Phase 2 of the City LYNX Gold Line is being threatened.
Due to City budget shortfalls, some Members of City Council are suggesting the $75 million
they already approved for the Gold Line be cut from the budget.


Further compounding Charlotte’s tax revenue problems, the NC Senate’s new proposal would split (sales-tax) revenues, with half staying in the county where the sale took place and half then distributed based on county population. The change would take effect in 2016 and wouldn’t be phased in gradually over several years, as in the previous bill. Reference: HB 117 §105-472. Allocation, distribution, and use of taxes collected.

Tax winners and losers

However meritorious the DOLRT may be, we need to think seriously about where the money is going to come from to build and operate it, and we need to have a backup transit plan in the event the money for DOLRT doesn’t materialize.