Light Rail Advocates would like to think that the recent downturn in the economy doesn't have an effect on how Kansas City will pay for a massive toy train experiment.
Nothing could be further from reality. In fact, all over the nation cities are having trouble managing the debt load that light rail would (yet again) increase.
And yes, I know that funding for light rail is based on MORE TAXES and some fantasy of federal funding in the middle of $700 BILLION bailout . . . But it gets worse.
In fact, it comes down to a simple question:
WHY IS KANSAS CITY GOING TO SPEND HUNDREDS OF MILLIONS OF DOLLARS WHEN WE'RE HEADING INTO AN ECONOMY THAT WILL NO LONGER ALLOW THIS TOWN TO RAISE MONEY FROM MUNICIPAL BONDS SO EASILY?!?!?!?
Here's just a bit of proof on this front for people who aren't following this aspect of the economy:
Municipal Bonds Freeze Up
Like other credit markets, municipal bonds are nearly frozen. During the week of Sept. 22, three significant bond deals were done. Normally the tally would be about 100.And here's another remarkable story about a city struggling to pay off its sewers (remember sewers?):
BIRMINGHAM - Alabama's most populous county was unable to make an $83.5 million interest payment on its enormous sewer debt Tuesday and could decide within days whether to file what would be the largest municipal bankruptcy in U.S. history.Just about everyone in Kansas City with any sense worried about Kansas City's debt load under Mayor Kay but for some reason supporters of Mayor Funky who are also light rail advocates have forgotten about the "principal" of being "smart with the money" when it comes to this town's light rail experiment currently under consideration.
And considering the horrible municipal bond market . . . I'll put things even more simply so even I understand:
THERE IS NO MONEY FOR LIGHT RAIL AT A TIME WHEN KANSAS CITY IS GOING TO STRUGGLE TO RAISE FUNDS FOR SEWERS AND OTHER INFRASTRUCTURE DURING AN UNPRECEDENTED ECONOMIC DOWNTURN!!!
Yet again, Mayor Funky has betrayed another one of his campaign promises and must be ignoring any economic training and/or instinct he ever had in order to attempt to lead Kansas City on board a financial terror train.
I'm not an economist and I'm sure light rail cheerleaders will underplay the serious concerns in the municipal bond market and their impact on Kansas City's future . . . But it's clear that anybody should be able to see that the financial risk of light rail is far too great to justify incurring more debt for Kansas City and risking far more pressing improvements this town needs when it comes to sewers and streets.
choo-choo-choose light rail!
ReplyDeleteTKC your analysis is apples and oranges.
What are you doing up so early?
ReplyDeleteThe City never hadthe money--everyone knows this can't be done without a huge infusion of federal funds--ain't gonna happen.
ReplyDeleteTrain of dreams? Build it and the money will come - this sound like a funky financial plan.
ReplyDeleteTrain of dreams? Build it and the money will come - this sounds like a funky financial plan.
ReplyDeleteRAIL LINES TO NOWHERE
ReplyDeleteThis lite rail crap reminds me of something Wichita did years ago. Because natural gas prices were regulated, the oil&gas people couldn't make any money bringing it out of the ground. Because of price controls it was cheap enough but supply dried up. Schools and plants in the US grew chilly in the dead of winter.
So the braintrust down in Wichita, always a city with more money than common sense, toyed with Coal Gassification for YEARS.
Big plant like they have in South Africa to turn coal into burnable gas. Like Kansas City, they had studies and votes and discussions and more studies.
And believe me, people were just SICK of the Chicken Little types saying the world would end if Wichita taxpayers didn't fork up the money for this boondoggle at the edge of town.
Until one day, the government deregulated the price of natural gas. Yup, our home heating bills doubled or more. But suddenly there was plenty of gas when Kansas O&G people turned up the spigot.
I shudder to think what would have happened if the city had built this plant to nowhere.
The trouble with that, is that government schemes like this SCARE PEOPLE. We really do need cheap energy... like lots of nuclear plants (since "clean coal" (TM) is an oxymoron)
KC had its on project that would never end... called UNION STATION and all we got out of THAT ONE was a pretty fountain out front! It remains an old building with a funny echo inside. Remember that, Dave Helling? You must have done a kazillion TV stories on it back at channel 4.
Who wants to listen to the government bureaucrats ever again?
Yup, tony.. keep calling it Kansas City's TOY TRAIN... that sums it up in two words.
It doesn't matter to some supporters whether it gets built or not. The endless studies, preliminary engineering, attorney fees will all get paid even though the thing eventually gets scutttled.
ReplyDeleteTake a close look at the advocates of Light Rail. Except for a few zealots left over from the 60's the wish I'd been a hippie crowd most of the rest of the pro crowd have always gotten every toy they cried for at their mother's knee.
ReplyDeleteThey do not pay the "real" cost of things. Us suburbanites who do not get a subsidy on our property taxes like the loft dwellers do, we four person families with two kids in college aren't hurting but it is because we have always been frugal and saved our money.
This Light rail is over powered, overpriced, (they do not have enough information to tell you how much it will really cost us) and the light rail goes no where. From a parking lot north of the river to a weed filled lot on 63rd.
Developer driven--you say NO then why the meetings on economic development and light rail that the regular guy is not invited to.
And Kay Barnes wants to take her expertise to Washington! Borrow Borrow Borrow - that's how it's done, right? Look where it got us on the national level. The problem with the local level is if you can't pay it back - you can't print money, so then it's off to bankruptcy court?
ReplyDeleteI have been an insider. I have seen and heard things first hand that trouble me. What I know is this: The city council has deliberately avoided any public discussion of the sewer reconstruction that will be mandated by the feds. It has a 6 to 7 billion dollar price tag. They know if voters are given real opportunity to rank vote, light rail would be at the bottom. They don't want voters to know that there water/sewer bills will be going up 400 to 500 percent. Rus Johnson, an elected official, has stated in meetings (I have been there) that he does not want the sewer issue before the public until they vote for light rail. Other elected council who have heard this should also be ashamed of not speaking up for democratic process.
ReplyDeleteYou the voters are seen as something to be manipulated.
Rus Johnson is not only withholding information, he is bullying any business owner or CEO who might publicly oppose the light rail. To some extent the bullying works. By the way, other councilmembers are involved in strong-arming executives who might publicly oppose light rail.
This is a conspiracy to manipulate the voters worthy of a Third World dictatorship. Ideas worth implementing can survive a free and flowing public debate. So why the lying and manipulation and bullying? Simple answer is: This light rail is not about transportation it is about special interests getting public money with no improvement in transportation. It is about keep information from the public.
Of course nobody wrote bonds during the bailout time. That doesnt mean that they can't write bonds.
ReplyDeleteA sewer bond is of a different type than one that would pay for light rail (or a turnpike, etc). The first is a general obligation bond that is payed out of the general fund. The second is one that is partially backed by the proceeds of the thing that it is financing. Bonds of the second type are considered more secure since they are going to be backed (partially) by a fairly steady income stream. They are also easier for cities with lower debt ratings to write since the obligation to pay it off is not 100% rested on the general fund.
tony-parkville said:
ReplyDeleteBorrow Borrow Borrow - that's how it's done, right?
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Actually, yes. That's how nearly everything gets done or built.
Dumbass.
tony-parkville said:
ReplyDeleteThe problem with the local level is if you can't pay it back - you can't print money, so then it's off to bankruptcy court?
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sigh. THE FEDERAL RESERVE DOES NOT PRINT MONEY. Printing money is not used to pay off debt obligations either. Learn a bit about how the Federal Reserve system works, dumbass.
N.B.: I bet a lunch at Priopos that tony-parkville was a Ron Paul supporter.
Light rail is not about moving people. This is now being framed about economic development.
ReplyDeleteIt is about making HNTB, and builders around light rail stations big bucks. Remember that a light rail cars are 90 feet long and two to a train during peak hours. So you are talking about needing big stations every 3/4 of a mile. This is not street cars which are much shorter and stop every two blocks or so. Lots of big bucks needed to build stations. And where will those stations be? In fact, the actual route is yet to be determined. They tell us the end destinations, but not an exact route. Why? The specifics will not be left to the public. That will be a city council call. Lots of room for influence buying or selling.
Anony 10:40 a.m. Good to know that the proponents are willing to debate this. What was put forth is the clasic "distinction without a difference". The City and feds pay for the better part of the current bus system. Riders pay for a small part. Water users pay a water/sewer bill. The City intends to dump more of the sewer repair costs which are large on to the user. Some business will see hugh jumps in what they pay. And the residential user will also. Without regard to types of bonds, the total expense to city and to users will rise dramatically. That is a major point. Citizens have a right to rank order the way that their tax dollars will be used. But this City Council does not want that. This City Council wants to piecemeal the tax issues one after the other. I say, too many unanswer questions. Too little real choices.
ReplyDeleteAnybody know where I can get an anti-light rail sign?
ReplyDeleteFuck a light rail. Buy a damn bike. People need exercise anyways.
ReplyDeleteYa Feel Me?
CWTR™
Just heard that it won't go to the airport! Where the hell will it go? I don't need no damn sign. I need an answer.
ReplyDeleteAnonymous 12:50 needs to wake up. The route is only one of the unanswered questions. This thing is not going to the airport. Repeat not going to the airport. It is a tool for demolishing certain parts of the city. Unlike the 2001 ballot, there is no mention of eminent domain. But in order to build the station and the development around it, there will be the use of eminent domain. This is to say that condimnation of thousands of acres will become routine in this town. Most of that will be established businesses along the route and the nearby residential properties. Development rights are going to be sold or leased on stations. In order to increase the rider density which is a requirment for federal funding, multiunit appartment houses and high rises will be encouraged.
ReplyDeleteWake up. Not going to the airport. Going to bring about condimnation of homes and small business properties. This is a big boys toy train. You get to pay for it. And still not have better public transportation.
How many stations will be on the route?
ReplyDeleteHow many stations will be on the route?
ReplyDeleteThere are no details about stations or anything. It's just ridiculous to expect us to write the City Council and the Mayor a blank check.
ReplyDeleteYou mean like Congress just did?
ReplyDeleteThat's it, just like Congress. And lets add just like the President.
ReplyDeleteTony call the Mayor and get him to drop his support for this and Gloria too.
I understand that borrowing is a major way things get done. Kay Barnes borrowed too much too fast. Not a Ron Paul supporter - I don't throw my vote away! Printing money - issuing debt - it's basically the same at the Federal level. The Feds are able to deficit spend - State and locals can't. If you hadn't figured out my message - you are the dumbass!
ReplyDeleteA sewer bond is of a different type than one that would pay for light rail (or a turnpike, etc).
ReplyDeleteAll bonds have one thing in common they must be paid off.
All bonds that are backed with a vote of the people have a second thing in common, You have to pay them off. I have to pay them off. Thats why a Mac hamburger costs a dollar and a dime. The dime is for the stupid bonds.