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| December 10, 2010
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USDOT Redirects $1.2 Billion from Ohio & Wisconsin to 13 Other States |
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U.S. Transportation Secretary Ray LaHood announced Thursday that $1.2 billion in high-speed-rail funds originally designated for Wisconsin and Ohio will be redirected to other 13 other states eager to develop high-speed-rail corridors.
Wisconsin has suspended work under its existing high-speed-rail agreement and the incoming governors in Wisconsin and Ohio have both indicated that they will not move forward to use high-speed-rail money received under the American Recovery and Reinvestment Act of 2009. As a result, $1.2 billion will be redirected to high-speed-rail projects already underway in other states, LaHood proclaimed. "High-speed rail will modernize America's valuable transportation network while reinvigorating the manufacturing sector and putting people back to work in good-paying jobs," LaHood said in a statement. "I am pleased that so many other states are enthusiastic about the additional support they are receiving to help bring America's high-speed-rail network to life." The recovery act included $8 billion to launch a national high-speed-rail program that will modernize America's transportation network, spur economic development domestically, and keep the United States competitive with other leading nations. High-speed-rail grants announced under the recovery act can be used only for high-speed-rail projects and not for other transportation projects, LaHood said. The Federal Railroad Administration originally announced $810 million of recovery grants would help pay for Wisconsin's Milwaukee-to-Madison corridor and $400 million would help fund development of Ohio's Cincinnati/Columbus/Cleveland "3C" route. Wisconsin will be allowed by FRA to keep $2 million for upgrades to the existing Hiawatha corridor connecting Milwaukee and Chicago. Ohio will be allowed to keep $15 million for unspecified rail projects. FRA will redirect the remaining $1.2 billion and will work with Ohio and Wisconsin to determine whether they have already spent money under their contracts that should be reimbursed to the federal government. Funds originally designated for high-speed-rail projects in Ohio and Wisconsin will now be used to support projects in the following states:
Washington Gov. Chris Gregoire issued a statement Thursday applauding the additional rail funds sent to her state. "Washington continues to prove it's a competitive player in the nation's high-speed passenger rail program," Gregoire said. "This funding supports highly skilled construction and operating jobs, and we appreciate Secretary LaHood's confidence in our ongoing efforts to expand and improve Pacific Northwest passenger rail service." The additional funding received by the Washington State Department of Transportation will most likely be applied to eligible projects in WSDOT's original 2009 recovery act application, such as to a project that completes a series of repairs to the BNSF rail line between Everett and Blaine. The repairs reduce delays and increase on-time performance for Amtrak Cascades service by improving track quality, reliability, and passenger ride. There were 14 rail projects valued at $602 million in WSDOT's original application that did not receive funding. "This will advance our ongoing work to increase the frequency and reliability of Amtrak Cascades service in our state," said Washington Transportation Secretary Paula Hammond. "We will work with the Federal Railroad Administration to identify projects that have the highest potential to help us achieve that goal." LaHood noted Thursday in a blog entry that FRA received more than $55 billion in requests for the $8 billion in high-speed-rail money made available by the recovery act. For the second round of funding, provided by Congress as part of USDOT's Fiscal Year 2010 appropriations, FRA received $8.8 billion worth of requests for only $2.4 billion in available funding. "I am pleased that so many states have been enthusiastic about the additional support they will now receive," LaHood wrote. "But it's no wonder. High-speed rail will modernize America's transportation network, spur economic development domestically, and jumpstart our manufacturing sector. In addition, it will keep the U.S. competitive with other leading nations. ... Looking at the advances other nations have already achieved in high-speed rail, it's clear that our investment in this game-changing technology is long overdue." President Barack Obama noted in a speech Monday to college students in Winston-Salem, North Carolina, that the Chinese last week just tested a conventional high-speed train that travels more than 300 mph. (see related stories on Obama's speech and the Chinese train) Outgoing Ohio Gov. Ted Strickland expressed Thursday his deep disappointment that Ohio's rail funds will be given to other states as a result of Gov.-elect John Kasich's opposition to Ohio's passenger-rail plan. "Today is one of the saddest days during my four years as governor," Strickland said in a statement. "Because I see jobs leaving Ohio. I see resources leaving Ohio. I see vital infrastructure leaving Ohio. And I see other states being enriched by resources that would otherwise have created thousands of new jobs, revitalized our cities, and helped keep our young people in Ohio. I can't understand the logic of giving up these vital, job-creating resources to California and Florida at a time when so many Ohioans need jobs." A Kasich spokesman said the incoming governor is disappointed that LaHood is not giving Ohio the flexibility he has asked for to use the money for infrastructure needs such as freight rail that can spur commerce and economic growth, the Columbus Dispatch reported. "Additionally, the governor-elect specifically asked that if the money could not be reprogrammed, then return it to the [U.S.] Treasury to reduce the deficit," said Rob Nichols, Kasich's spokesman. "He finds it tragic that instead of saving taxpayer money, they would simply waste it elsewhere. Washington needs to end its addiction to spending that is mortgaging our kids' futures." Questions regarding this article may be directed to editor@aashtojournal.org. |