Much has been written and still needs to be written and discussed about the future of the New Mexico Rail Runner.
As vice chairman of the Rio Metro Regional Transit District board, and the member who made the motion to end weekend service, I feel a certain responsibility to bring to light the facts we are facing. I say we because the bottom line is that all the citizens of New Mexico are carrying the $1.3 billion financial burden of the Rail Runner.
As such we ought to be informed.
The Rail Runner is facing a $1.2 million deficit in fiscal 2012, which begins July 1 of this year.
There was no real consensus as to what changes could be made without affecting the original purpose of the Rail Runner, which is a weekday commuter train. I felt that by reducing the service levels during the week we would be crippling the function of the Rail Runner.
We faced a similar financial crisis in late 2009. Gov. Bill Richardson directed stimulus money toward the weekend operations.
This only prolonged the inevitable. We are now facing the real question of the sustainability of the Rail Runner operations.
Both passenger ticket revenue and the proceeds from the special 1/8 percent gross-receipts tax imposed in a four-county area are coming in lower than projected. Additionally, there is nearly $6.4 million of federal Congestion Mitigation Air Quality grant funds that are dedicated to the Rail Runner operational budget.
It is $1.2 million of the Congestion Mitigation Air Quality funds that expire this year. Even more important, the balance of those funds will go away in 2013 creating an additional $5.4 million deficit in fiscal 2013.
The state has spent a half billion dollars on the Rail Runner. Under the GRIP — Governor Richardson’s Investment Partnership — program, the state issued highway revenue bonds to pay for the Rail Runner. This means that with principal and interest the state is obligated for nearly $850 million over the next 16 years to pay for the Rail Runner.
My understanding is that the payments are approximately $18 million per year, with two balloon payments in 2025 and 2027 of nearly $230 million each.
Operationally, the budget for the Rail Runner is approximately $23 million a year, with fare box revenue being $3.2 million or 13.5 percent of the total operating budget.
Putting this in even bleaker perspective over the span of 20 years, the true cost of the Rail Runner is close to $1.3 billion, with revenues of only $60 million.
The average number of weekday boardings is 4,500. Given that this is a commuter train, it is reasonable to assume that a Rail Runner passenger has two boardings per day. This means that the train is serving approximately 2,250 individuals per weekday. Usage is significantly less than this on Saturday and Sunday.
The state is obligated to the bondholders for princi pal and interest payments of $850 million whether we run the Rail Runner or not.
The Rio Metro Board and state officials are faced with very difficult decisions. Even though the Rail Runner was originally intended to be only a weekday commuter train, I think it is imperative for us to explore ways to increase the service levels not only during the weekdays but also on weekends to take advantage of our cultural corridor. It is critical that this be done in a financially responsible manner.
I hope everyone understands this $1.3 billion taxpayer burden cannot be solved as easily as standing in front of the state’s jet airplane and saying it needs to be sold.
Like it or not, every taxpayer in New Mexico is on this train. Like it or not, Gov. Susana Martinez is the new conductor.
My motto has always been that we are not faced with problems but opportunities, and I look forward over the next few years to making the best of what looks like a very bad situation.
