Op-Ed: Pressure on Transportation Authority Not to Renege on SMART Funding Promise

Mike Arnold of Novato is a Ph.D. economist who was co-chair of the campaigns to defeat the sales tax measures for the SMART passenger train in 2006 (Measure R) and in 2008 (Measure Q).

Renege (verb) “to go back on one’s word” or “break one’s promise.”

At its meeting at 7 p.m. tonight, June 2, the Transportation Authority of Marin is considering whether to renege on a promise made to Marin voters in 2008.  In order to assuage voters’ concerns during the 2008 Measure Q campaign, TAM and Sonoma-Marin Area Rail Transit promised voters that none of Marin’s discretionary transportation funds would be used to fund the new passenger train system slated to open by 2014. None. 

The TAM board will consider writing a check for $8 million to SMART in violation of its promise to the voters when it meets tonight in the Marin County Board of Supervisors chambers at the Marin Civic Center. The money would come from Marin County discretionary transportation funds.

That’s $8 million that had been committed to worthy Marin transportation and transit improvement projects will have to be diverted to help fund a rail boondoggle that achieves little.

Which Marin projects won’t get funded? The public has no idea because TAM Chairman Steve Kinsey has created an ad hoc (aka non-public) committee to consider the issue.  And a recent briefing memo issued by TAM staff doesn’t say.

The public will only learn of what the committee recommends late in the day, providing little time for public input.

SMART has reported it has a $21 million funding gap. That figure understates its red ink because it ignores another secret kept from the public: The Metropolitan Transportation Commission has told SMART, Marin and Sonoma County transportation officials that it will not reallocate $22 million in bridge toll funds SMART was counting on unless SMART eliminates the funding gap. 

So, SMART’s funding gap is really $43 million. 

In the same closed-door meetings, the MTC has promised that if Marin and Sonoma come up with $11 million for SMART, the MTC will pony up not only the $22 million in bridge toll funds but an additional $10 million, closing the $43 million gap and allowing SMART to issue the construction bonds this summer.

Confused? You ought to be, as these financial shenanigans with taxpayer funds are happening outside of public scrutiny. 

What’s worse? The TAM staff is proposing it allow Marin to be guilt-tripped by Sonoma. They have proposed that Marin pony up $8 million while Sonoma only contributes $3 million to close the funding gap.

Once again, Marin politicians appear to be lying down for Sonoma’s interests rather than protecting Marin’s.

No wonder they’re meeting behind closed doors.

SMART backers have argued that SMART’s financial problems are a consequence of the Great Recession. Just like all previous financial claims made by SMART supporters, the claims don't square with the facts. SMART is in a hole dug with its own shovel of financial PR.

Construction costs and interest rates are lower than in 2008. SMART’s cost overruns are not a function of the economy, and had we not had the recession those overruns would be more, not less. 

While the sales tax forecast has been adjusted downward due to the recession, much of the adjustment was caused by the rosy forecast the SMART board adopted in 2008 that was built on false hopes, not careful analysis.

A quarter-cent sales tax approved by voters in the two counties three years ago was never sufficient to fund construction and subsidize rail service from Cloverdale to Larkspur.  But the SMART board knew it couldn’t pass a half-cent sales tax, so it ended up misleading themselves and proponents. 

The board successfully sold voters a pig-in-a-poke. Taxpayers are now paying for their failure to act responsibly. 

It is no surprise that SMART has broken yet another promise to the voters. After all, what promise has it kept? There is no service to the ferry. The at Atherton Avenue and North Redwood Boulevard is indefinitely delayed. Weekend service and shuttles are still in doubt. Ridership will be a pittance for a train that goes no farther south than San Rafael, and that’s if they get the riders they have forecast.

Once the bonds are issued, rail service likely will need to be further reduced to pay for the bonds because paying for debt service comes before paying for rail operations.  

Throwing more money down this financial black hole is throwing good money after bad.  If TAM reneges on the promise made repeatedly to Marin voters in 2008, voters won’t forget how they were misled by TAM’s false promises next time the board comes looking for money from local taxpayers.