[CedarDave]

It's refreshing to have a public servant put forth the truth of financing of the Rail Runner. As far back as 2006 or even earlier, word was out as to what Richardson was doing with highway funds and how he bamboozled the Democratically controlled legislature to fund the railroad, first with the purchase of the BNSF line then less than $200 million in funds to get the first segment up and operating. The second segment involved the biggest capital construction project in state history -- building a line from the Rio Grande valley up the lava cliffs to the plateau where Santa Fe is located. Construction costs were said to total just under $500 million dollars. Now, the true cost of the project ($1.3 billion) comes into the light and the state taxpayers are on the hook for $850 million whether it runs or not.

The first several years of operation were buoyed by air quality mitigation and stimulus funds. Both have/are ending requiring creative ways (including increasing fare - duh!) to save the service, if it is worth saving. Irrespective of the fate of the train, as he said, the state is still on the hook for $850 million.

Abraham hopes (as do many SF businesses) that creative ways can be used to make it a tourist attraction in addition to a commuter train. This involves getting ABQ/SF residents and visitors to use it on off hours and on weekends, provided such service can reduce the bottom line and increase farebox recovery to cover much more of the operating cost.

If not, sell off the engines and cars, mothball the line, and reinstate running buses to and from Santa Fe for a cost to taxpayers of $800,000 per year.

[CedarDave]

...the true cost of the project ($1.3 billion) comes into the light ...

NM list PING! Click on the flag to go to the Free Republic New Mexico message page.

(The NM list is available on my FR homepage for anyone to use. Let me know if you wish to be added or removed from the list. For ABQ Journal articles requiring a subscription, scroll down to the bottom of the page to view the article for free after watching a short video commercial.)

[EQAndyBuzz]

“The Rail Runner is facing a $1.2 million deficit in fiscal 2012, which begins July 1 of this year.”

Just raise prices and tax everyone in the state

That will fix the problem /sarc

[okie01]

I recall several conversations between us here on FreeRepublic which predicted that such an end to the RailRunner boondoggle was inevitable.

Now, it should be apparent to all.

The most cost-effective solution for the people of New Mexico is to shut the operation down. Tomorrow. If not sooner. It was never going to work. And, by damn, they've proven it.

There is no point in adding ever-growing operational deficits to the capital costs already incurred.

I make the cost to each NM household at around $2,000. What do you propose to do for the ex-Gov in return?

[org.whodat]

Willie Green is down at amtrak buying tickets to get out there and help them out.

[NonValueAdded]

I wonder how the 2,250 ridership compares to the projections used to push the project. Also it is interesting to now learn the federal money was "congestion mitigation." Just how much congestion was there along the route?

I grew up with commuter rail. In metropolitan Boston it made a lot of sense. There certainly are cases for it. But thank heavens that our Florida Governor avoided the same sort of boondoggle as outlined in this article. That route was not a commuter route and we had obvious pie in the sky ridership estimates.

[festusbanjo]

...and they wonder why Rick Scott in Florida said “no thanks” to a “free train” running from Tampa to Orlando. Like most government ventures, if it was a good idea to begin with, a private enterprise would have done it long ago.

[CedarDave]

Article posted earlier today with additional history:

Fiscal Train Wreck (NM-Richardson's Railroad Runs deeply into the Red)

[hinckley buzzard]

Trains like this are demonstrably useless as transportation. The only way they can be useful is to focus on tourism. Wine-tasting get-away-weekend trains to Santa Fe would appeal to the artsy-fartsy types who keep that poor beleaguered pueblo alive.

If they were smart enough they would extend it to Denver, through some spectacular country. I took the train from Denver to Raton many years ago (The Texas Zephyr) and it was as beautiful a ride through the mountains as there is anywhere. As for routine transportation, though, this is obviously the predicted bust.

[Lurker]

I suppose that raising fares to actually cover the operating costs is completely out of the question.