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Commentary By Emily Top

Purple Line Extravagance Leaves Less for Metro

Economics Tax & Budget

Maryland Governor Larry Hogan (R) has criticized Department of Transportation Secretary Elaine Chao for underfunding the D.C. Metro system. However, his criticism comes at a time when his state is beginning a $5.6 billion (including a $900 million grant from the federal government) light rail line project that is unlikely to be sustainable.

Governor Hogan believes that the State of Maryland is funding more than its fair share of expenses for the Metro system, and that the federal government should be contributing more. Currently, the Washington Metropolitan Area Transportation Authority (WMATA) is working on improvements to the system outlined in their 2016 report, “10-year Capital Needs Inventory and Prioritization." The report calls for approximately $17 billion for maintenance, $7 billion in new investment, and $800 million in unallocated funds between 2017 and 2026.

Hogan has proposed a four-year plan in which D.C., Maryland, and Virginia each contribute $125 million per year to fund the Metro. However, the various parties have only been able to agree to this plan for one year.

Hogan argues that only 2 percent of Maryland residents utilize the Metro, yet 11 percent of the Maryland’s transportation budget is dedicated to paying for it. Forty-three percent of Metro riders are federal workers (although Metro indicates that is number is 39 percent). To Governor Hogan, Maryland’s share is excessive. Because so many federal workers use the Metro, the federal government should pay more for its services.

But at Governor Hogan’s request, the Maryland Transportation Authority (MTA) recently started construction on the costly light rail Purple Line, intended to span 16 miles between Bethesda, MD and New Carrollton, MD. It is planned to intersect the Metro lines at Bethesda, Silver Spring, University of Maryland at College Park, and New Carrollton. The project began in August and is not expected to be operational before 2022.

The purpose of the Purple Line is to connect Montgomery County and Prince George’s County via rail with the intention of reducing traffic on the roadways. However, it is unknown whether the rail line will get enough ridership to sustain it given it will have annual operating costs of approximately $58 million. The majority of this funding is expected to come from federal, state, and local governments, not the private sector.

Back in 2013, the Purple Line was estimated to serve 56,300 riders per day if it were in service then and 70,375 riders per day by 2040. Given the recent decline in Metro ridership, the growth of Uber, and possible automated vehicles, some have called for updated ridership estimates. Supporters of the Purple Line argue that Metro ridership would not substantially affect Purple Line ridership. However, a large proportion of the Purple Line’s passengers are expected to transfer to the various available Metro lines, which include the Red Line, Green Line, and Orange Line.

Ridesharing services such as Uber and Lyft are likely to reduce the ridership numbers as people increasingly prefer the convenience of door-to-door service. In May, a U.S. District judge ordered for the ridership numbers to be recalculated.

Rather than criticizing Secretary Chao for not funding more of the Metro, Governor Hogan should reevaluate his financial choices. Funds currently earmarked for the Purple Line project could be better spent improving the infrastructure that is already in place.

 

Emily Top is a research associate at Economics21.

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