More SunRail Madness

Bad news for SunRail: Congress may eliminate funding for New Starts program. That is the program federal funding for SunRail may come from. Congress has yet to approve the $178 million grant recommended by the Federal Transit Administration. Transportation analyst Matthew Zisman sent this report to Joyce Rose, staff director of the House's Railroads Subcommittee.

It is true that Congress will still need to appropriate funding for New Starts program in order for Florida DOT to receive the final $72 million under the SunRail FFGA. However, full funding grant agreements are contracts between the federal government and project sponsors – a fact that is recognized by Congressional committees. Traditionally, the first dollars appropriated for New Starts (or allocated by FTA in the years there have not been New Starts earmarks) have been to honor FFGA commitments.

SunRail is not alone in this situation. There are a dozen other rail transit projects nationwide that are currently under a full funding grant agreement and will require federal funding in FY 2012.

The House Budget Resolution report language does call for the termination of the New Starts program. However, this is a non-binding resolution – the bill language of the resolution itself does not make a cut to New Starts. The Transportation, Housing and Urban Development Appropriations Subcommittee will have the flexibility to allocate their General Fund budget authority as they see fit. These will be tough choices, because we must do more with less. But the House action will not be the last word -- the annual appropriations process requires both House and Senate action, followed by a conference to come to a unified agreement before the bill becomes law.

The SunRail project fares would not cover the cost of the first seven years of the rail running. SunRail must be operating by May 1, 2014 or be considered in breach of contract. This project is a mess backed because it serves the political and financial interests of John Mica, J.D. Alexander and Dean Cannon.

Horrible SunRail Project Approved

Florida state Sen. Paula Dockery comes out against Gov. Rick Scott's decision to move SunRail forward.

“This morning, Governor Scott had his Secretary of Transportation announce that he will betray the trust of the conservative electorate who put him in office by moving forward with the least cost-efficient commuter rail project in the nation. This decision has completed the governor’s transformation from businessman to political insider. When the SunRail/CSX commuter project is viewed from a purely business vantage point, the project falls so far below what a savvy business owner would accept that it is somewhat baffling. It is unclear if when making the decision the governor had a change of heart, if he simply succumbed to the desires of the big money special interests, or if he has a severe case of amnesia and thought that he was supposed to be representing CSX instead of Florida’s taxpayers. Governor Scott’s general counsel, a former CSX executive, admitted to giving blatantly false financial facts regarding High Speed Rail in front of the Florida Supreme Court. For that reason, it is overwhelmingly disappointing but not altogether surprising that the facts about SunRail, a sacred cow of special interests, would be ignored and the decision would be based upon arguments put forward by highly paid public relations consultants, using Floridians tax dollars. The facts are as follows: nationwide, this is the lowest rated project for cost-effectiveness by the federal government, low ridership estimates, excessive liability is transferred from a for-profit corporation onto all Florida citizens, and it is a blank check waiting to be written by the taxpayers for any and all cost-overruns and operating subsidies. While ‘warnings’ were given to the local governments during Tuesday’s dog and pony show, this fact remains: the agreement between the federal government and the State of Florida clearly places the financial responsibility for all but $300 million of a $2.6 billion project squarely on the backs of Florida taxpayers.”

Dockery is correct. SunRail is rated the least cost effective rail project. I wrote that I had problem with the fact that Florida pays CSX for the tracks. CSX is also off the hook for any liability, if CSX is responsible for faulty upkeep of the tracks.

I noted the Sen. J.D. Alexander pushed for SunRail because he stood to financially gain.

The blog Stop CSX in Polk County broke the story that Alexander's was purchasing Phoenix Industries. Alexander owns Altantic Blue. The company bought Phoenix Industries, a frozen food vender that does business with CSX. The transporation bill would have placed CSX's new hub near Alexander's warehouse. One needs a scorecard to track Alexander's conflicts of interest.

Below is a cost comparison between SunRail and high speed rail. The maximum cost of the federally funded high speed rail project for Florida would be $280 million. The maximum cost of the SunRail project would cost Florida taxpayers $901 million. The counties that would have been involved with the high speed rail project would have zero tax obligation. Volusia, Seminole, Orange and Osceola counties would have to pay $526 million. Scott's idea of fiscal conservatism is turning down federal money and making Floridians pay for a rail project few people wanted.

23,000 would have been created from the high speed rail project. Only 8,000 jobs would have been created from SunRail. There are no private investors involved with SunRail. The high speed rail project has secured $400 million. Scott hates President Obama so much that he took the better deal. It also puts the rest the bogus claim that Scott has a brilliant business mind. No smart business man would take SunRail over the high speed rail project. It makes no fiscal sense.

High Speed Rail v. SunRail

Update: A very big reason SunRail was approved by Scott. Florida Chamber of Commerce President Mark Wilson approves of the project.

“SunRail is a smart infrastructure investment. This is another example of Gov. Scott and the legislature putting Florida’s long-term goals ahead of the short-term interests of a few.”

Scott gives a reason for approving SunRail that I don't buy.

Scott said his lawyers told him there was a “significant risk” he would have lost a similar court challenge had he tried to block the commuter project.

Scott's Florida Supreme Court victory set a (very bad) legal precedent. Scott was given legal authority to ignore legislation approved by his predecessor Charlie Crist. Scott claims that the legal ramifications of high speed rail and SunRail are totally different. Scott fails to cite how that is so. I call bullshit on Scott's legal claim.

Rick Scott Has Receives Negative E-mails

You will be less than shocked to learn that Gov. Rick Scott's office is receiving negative e-mails over his line-item veto $4,799,11 for public broadcasting funding. Scott's office has received 3,316 e-mails in support of public broadcasting funding. 976 e-mails were in support of the SunRail project Scott has put on hold. The vast majorities of the e-mails were against Scott's policies on public broadcasting and SunRail. I'm sure Scott will send communications director Brian Burgess to tell us up is down and down is up.

Pancakes Are More Than For Breakfast

CFO Alex Sink is demanding the resignation of Florida Department of Transportation Secretary Stephanie Kopelousos and her aide Kevin Thibault. The latter sent emails to Kopelousos with the code words "pancake," "pancakes" and "french toast." The two were not making plans to hit Denny's grand slam breakfast menu. The words refered to the CSX contract for the recently approved Sunrail deal. The Sunshine law requires all government business be conducted in the open. Kopelousos gave an explanation that doesn't pass the laugh test.

"There was nothing more, nothing less than just that," said Kopelousos, appointed by Crist in 2007. "We were not trying to circumvent any public records request. It was just a mere eye-catcher so I would look at the e-mail."

Sink sent an email out to supporters demanding the immediate removal of Kopelousos and Thibault.

Dear Friend,

Like many of you, I woke up Monday only to learn that Florida Department of Transportation officials -- including Transportation Secretary Kopelousos -- may have deliberately used code words like “pancakes” and “waffles” during the back-room crafting of commuter rail legislation in order to disguise their communications and avoid the scrutiny of public record requests.

Apparently, these government officials, YOUR government officials, may have decided "pancakes" aren't just for breakfast anymore -- but, instead, are a way to duck transparency and cover their actions.

It's not cute, nor clever. It is outrageous. We have to change the way that the people's business is done in Tallahassee. That means holding our state government accountable and ensuring that Florida officials are living up to our state’s name -- and reputation -- as The Sunshine State.

That's why I called on Governor Charlie Crist to investigate this violation of Florida's "Sunshine Law" and hold every government official involved in this scheme accountable.

If Secretary Kopelousos and her staff have been hiding their communications from the people of Florida, they should immediately resign. Floridians deserve better than the deceptive conduct that has become commonplace in Tallahassee.

It's time to let the sunshine in and hold the career politicians accountable. Please forward this email to everyone you know -- and make sure Tallahassee knows that we're watching.

Gov. Charlie Crist originally defended Kopelousos. After catching heat from Republican State Senator Paula Dockery, Crist asked the state's inspector general to investigate the emails. My experience is Florida ethics investigations tend to go nowhere. What works against Kopelousos is Crist, Sink and Dockery are running for office. Crist doesn't need the hassle and Sink and Dockery are running as reformers.

SunRail Funding

According to Sen. Bill Nelson, the federal government has agreed to give SunRail $40 million in funding. The House and Senate still has to finalize the deal. The White House supports the SunRail project.

SunRail Deal Passes

The Florida Senate passed the SunRail bill 27-10. The vote was not as close as expected. Gov. Charlie Crist did some rare lobbying on behalf of the bill. Sen. Bill Nelson and Sen. George Lemieux issued a joint letter expressing their support. A major surprise was Republican lawmakers making a deal with AFL-CIO President Mike Williams to preserve union jobs.

“Our goal of stopping the displacement of federally-qualified railroad workers from Florida’s passenger and freight railroads will not be compromised as experienced rail workers will continue to maintain Florida’s railways,” Williams said.

South Florida's Tri-Rail will get state funding to keep it solvent. 13,000 riders use Tri-Rail daily. The rail is an asset but hasn't been able to make a profit.

My problems with the SunRail proposal is CSX is protected from liability. Florida is buying the track from CSX. So the state does bear responsibility. Sen. Paula Dockery made the best argument for why the CSX deal is one-sided.

"We are paying them," Dockery said, "10 times what their corridor is worth for the honor of owning that corridor. It's now our corridor. So they're introducing freight into our passenger rail corridor. They should be indemnifying us. Not the other way around."

Senate President J.D. Alexander has land near the track that would dramatically increase with the new commutor line. Rep. Baxter Troutman asked made a big stick about Alexander having a conflict of interest. Troutman and Alexander are estranged cousins. So make your own judgement on what that feud is about. If anyone knows, feel free to drop a comment.

Interstate I-4 is a mess. A passanger rail from Tampa to Orlando makes sense. I didn't support the last SunRail deal. Unlike other progressives, I am not 100 percent sold on light rail as a tranportation fix. I understand the green and congestion arguments. The problem is light rail making a profit. Tri-Rail is a perfect example of a light rail program not able to stay financially solvent. The Florida Department of Tranportation is going to have to figure out a way to promote rail to the public.

If I was in the Florida Senate, I would have voted yes. The CSX deal isn't perfect but we need to look into a tranportation future and start dealing with gridlock.

Marco Rubio Sunrail Flip Flop

Republican Senate candidate Marco Rubio used to be for Sunrail. That was before stimulus money was going to be used for Sunrail. Rubio couldn't resist an opportunity to bash President Barack Obama for political gain. Rubio released a statement announcing his stance against Sunrail.

In a statement from his campaign today: "We should be wary of all the promises floating around Tallahassee about how much this latest round of government spending will create lasting jobs and prosperity. Rail projects have merit as transportation and infrastructure policy. But selling SunRail as a job issue, as Charlie Crist, has chosen to do, is a stretch. If the nearly $800 billion Obama-Crist stimulus plan didn't create the jobs they promised, how can we believe a new train system is going to live up to its promises?

"In addition, I disagree with Governor Crist's claim that he doesn't care where the money come from to pay for this project. I care a lot, because it's coming from borrowed and printed money that is ultimately coming from my children and their generation."

Rubio used fearmongering to make the baseless claim that Obama and Gov. Charlie Crist support homeless sex offenders. As Florida House Speaker, Rubio supported bills being published in English and Spanish. Rubio changed his position when he became a Senate candidate. Rubio doesn't have conservative principles. He is a politician enslaved to poll numbers and conservative talking points.