Editorial: Rail Runner Tax Idea Should Fuel Discussion (NM-Richardson's Railroad)

Sen. George Muñoz, D-Gallup, has proposed legislation that would tax residents of the counties the New Mexico Rail Runner Express chugs through. That’s because the train chugs through money much faster than it chugs from Belen to Santa Fe.

In fact, it takes $23.4 million to operate the train annually, plus there’s $843.3 million in capital and financing costs the state owes through 2027. The folks Muñoz calls train “users” already pay an additional $13 million in sales taxes annually to help finance the train, and only $3.2 million comes in to the fare box each year. So with $5.4 million in federal clean-air funding evaporating in fiscal 2012-13 and balloon payments looming, it’s no wonder panic is setting in and concern for how to pay for the train is devolving into who should pay for the train.

But this divisive rural-versus-urban debate skirts what actually should be up for discussion — which is, can the state make the train a subsidized-yet-viable piece of New Mexico’s mass transit system without draining the same Transportation Department fund that has to pay to build and maintain roads that carry the vast majority of New Mexicans throughout the state from point A to point B?

The article goes on to say that back in 2003 there was no plan on how to make it a successful commuter train (currently there are only 4,500 daily boardings and the 50-minute drive to Santa Fe takes 90 minutes by train).

Well, back in 2003, Richardson was looking to use the train as an example to enhance his "green" and environmentalist resume in his run for President in 2008. And the Democratic-controlled legislature bought the scam and the administration did not apply for federal funds (something about having to pass a cost/benefit test) and instead raided the NM highway fund to the tune of a half-billion dollars (not all at once of course, but in increasing increments from $90.2 million proposal in 2003 to $135 million for the first phase to just under $1/2 billion to complete the system in December 2008). Now the cost including interest payments will balloon the total to $843 million that comes due in 15 years. In the meantime farebox recovery is only 14% with taxpayers paying the tab for the minuscule ridership.

What's to be done? Suggestions include everything from shutting it down and ripping up the rails to increasing fares to increasing taxes on citizens whose counties it traverses. Fares are still ridiculously low, especially compared to similar services in other areas of the country. Ridership is unlikely to increase, especially as at least two more stations are coming on line that will further slow travel times to Santa Fe decreasing its desirability as a mode of travel.

This was all foreseen early on and reported in stories and even editorial cartoons in the ABQ Journal. Here on Free Republic do a keyword search on Richardson's Railroad to see the history. One of the best summary articles with the editorial cartoons can be found at this link from November 2007:
The Little Engine That Could Devour Money (NM-Richardson's Railroad)

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The article goes on to say that back in 2003 there was no plan on how to make it a successful commuter train

As a State Representative back in 2003 I can testify that there was no plan on how to make this work. In fact no cost/benefit had been conducted, no feasibility study had been done and Richardson’s Secretary of Transportation at the time had no idea on the estimated ridership. I know this for the Secretary’s testimony in the House Appropriations Committee and her statement’s made on the House floor. The legislation for the train was buried in what is known as the Governor Richardson's Investment Partnership (GRIP) which was primarily supposed to have focused on road improvements throughout the state. The legislation for the train was so deeply buried in the bill the Senate never noticed it and had no debate on the issue. GRIP was actually passed in a special secession in Oct of 2003 not during the regular secession.

I would add to CedarDave’s comment that not only did it have to pass a cost/benefit test Richardson also approached US Senators Bingaman and Domenici who both told him that federal grant that they wanted to get the money from was highly completive and saw no way that the state would be successful. In addition to enhancing his “green” environmentalist resume this was also a political payoff to BNSF for campaign contributions.

...this was also a political payoff to BNSF for campaign contributions.

The state bought the RR from Belen to Lamy and was supposed to complete the purchase of the rest of the line to the CO border north of Raton. Susana put the kibosh on that shortly after she took office. I don't know the current status as far as that part of the sale goes; right now the only train on that line is the daily Amtrak LA-Chicago Southwest Chief. BNSF continues to maintain that line but there are hints that Amtrak could be transferred to BNSF's main line from Belen to north of Wichita, KS. BNSF probably doesn't want that to happen as it would interfere with their heavy freight traffic. I suspect they just hope that Amtrak intercity goes away due to budget cuts.

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