Maryland opposing Metro Matters renewal
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Maryland is opposing renewing the Metro Matters agreement for capital funding, according to a source familiar with the negotiations. This step would significantly handicap WMATA’s future
The 2005 agreement provided for reliable, dedicated annual capital funding from local jurisdictions. Before Metro Matters, jurisdictions funded WMATA capital programs on a year by year basis. As a result, they had trouble starting capital projects because they couldn’t sign a contract that extended into the future beyond the money they already could count on.
Instead, they had to wait to save up money for projects, meaning that the money jurisdictions did contribute would sit idle for long periods of time. Only about 39% of funds were obligated at any time, which rose to 82% under Metro Matters.
In place of a new Metro Matters, according to the source who spoke on condition of anonymity, Board Chairman Peter Benjamin (on behalf of Governor O’Malley) is recommending WMATA establish a line of credit instead and a set capital budget level of $700 million per year. Jurisdictions would determine their levels of contribution each year, but would have some pressure to keep it up so that WMATA could pay back its borrowing.
However, this seems to create a significant danger that jurisdictions would leave WMATA in the lurch. Under the current agreement, Maryland is required to pay more later to make up for any deferrals this year; without an agreement, they would not have such an obligation. Using credit would also seem to cost WMATA more in interest payments if they have to draw upon the credit.
Last year, Maryland moved ahead with an aggressive multi-decade commitment to build a $3 billion freeway. They obligated future toll revenue and future federal transportation aid. The legislature has been unable to agree on a funding source to refill the empty Transportation Trust Fund. It’s extremely shortsighted now to oppose a smaller, shorter-term commitment to maintain a vital transportation resource. Governor O’Malley shouldn’t make Metro suffer for his administration’s and his state legislature’s mistakes.