Marc Joffe
Marc Joffe
The Federal Transit Administration’s (FTA’s) Capital Grants Dashboard shows that Austin, Texas, is on track to get over $4 billion of federal funds. The grant would cover 49 percent of the estimated $8.234 billion cost (including $1.1 billion of debt service expenditures) to build a 9.8‑mile light rail system through the city center. The nation’s 11th-largest city has experienced dramatic growth without light rail, but transit advocates prevailed upon voters to begin funding a system in the November 2020 election through a property tax increase. Some of those voters may now be experiencing buyers’ remorse, as they will have to cover the remaining 51 percent of the cost for a system with questionable benefits.
Given Austin’s rapid growth and serious traffic congestion, light rail might seem like an obvious solution. But continued rapid population growth is by no means a sure thing. Last year, Austin fell out of the top 10 US cities by population after being surpassed by Jacksonville, Florida. And Travis County, which includes Austin and surrounding areas, saw its first year of net out-migration since 2002. Both the city and county are still growing, but the rise in population could further slow or reverse given Austin’s high housing costs.
But even if Austin’s population flattens, there is still the question of how its 980,000 residents (plus visitors) can move about the city without causing traffic jams. Light rail is not a cost-effective solution to congestion, and there are other things the city could do to obtain some relief more quickly.
The light rail project is on track to get its Full Federal Grant Agreement (FFGA) in 2027. The city could then commence construction with an eye toward finishing the project in 2033. But these dates could well slip.
FTA typically requires a secure source of local funding before signing an FFGA. » Read More
https://www.cato.org/blog/does-austin-need-8-billion-light-rail-project