Sec. LaHood Says Loan for Silver Line "Looking Good"
Wednesday, January 16, 2013 - 03:32 PM
U.S. Secretary of Transportation Ray LaHood expressed optimism a federal loan would be approved to help finance the $5.5 billion Silver Line rail project, funding that would help slow down projected toll rate increases on the Dulles Toll Road.
“This is one of the first [projects] under the new TIFIA loan program that was passed by Congress in transportation bill, which gave us an enormous amount of money, almost $2 billion over the next two years,” LaHood said. “I would say right now things look good.”
Tolls on the Dulles Toll Road are currently set to finance roughly half the Silver Line’s cost.
After swearing in two federally appointed members to the board of directors of the agency that oversees the Silver Line’s construction, the Metropolitan Washington Airports Authority, LaHood praised the authority’s work to overhaul its ethics, hiring, and contracting practices. Last year an audit by the Department of Transportation revealed a litany of shady dealings at MWAA.
“Since then MWAA has done everything that we have asked them to do,” LaHood said. “That included passing new travel and ethics policy for its board and staff, terminated contracts with former board members and employees that are not competitively bid, adopt employment and nepotism restrictions, improve board transparency, began to make quarterly acquisition reports and forecasts to the [U.S. DOT], and approve an amendment to the lease with DOT to give us oversight of MWAA policies and procedures permanently.”
This progress is a factor in determining whether MWAA will receive a loan through the TIFIA (Transportation Infrastructure Finance and Innovation Act) program.
Last year Virginia Congressman Gerry Connolly (D) said he expected the loan could amount to 25 to 30 percent of the project’s cost. When asked on Wednesday how large a TIFIA loan would be for the Silver Line, LaHood declined to speculate, and he offered no estimate on when the final decision would be made.
“You’re the only one that would really care about that, and I’m not going to get into the details about the loan application,” LaHood said. “We are working with MWAA on this and as soon as we finalize the work we will announce what percent we’re going to give and how much money it involves.”
Drivers who use the Dulles Toll Road also care about how much funding the Silver Line may receive. Additional funding would bring down the projected toll rates, currently scheduled to rise over the next four decades.
Tolls on the road increased on January 1. The full, one-way toll increased by 50 cents to $2.75. To the commuter who takes the road every day, that will amount to an extra $260 in 2013. The tolls are scheduled to increase again in January 2014 by another 75 cents.
MWAA CEO Jack Potter said he’s also optimistic MWAA would receive the additional funding.
“We are working very closely with the Department of Transportation, Loudoun County, Fairfax County to put our application in and we are very positive of a good outcome,” Potter said. “I’d like to get as much as we possibly can.”
Potter has been lobbying for more state funding. Virginia lawmakers have approved only $150 million for the Silver Line so far. On Monday Potter met Virginia Secretary of Transportation Sean Connaughton as well as a group of lawmakers who control the purse strings in Richmond.
“I am very much focused on output. The output is dollars coming to the rail project,” Potter said. “How the Commonwealth generates those dollars is strictly Commonwealth business. I am strictly focused on the output of $300 million dollars or more that could come to the rail project.”
In a major transportation funding plan unveiled earlier this month, Governor Bob McDonnell proposed using sales taxes revenues to provide $300 million for the Silver Line over three years. That plan, however, is expected to face opposition in the General Assembly among lawmakers who say the rail project should not compete for general fund revenues normally used to pay for education and public safety.