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Friday, January 18, 2008

Gov. Backs Look at Rail Tax

By Raam Wong
Journal Staff Writer
    Gov. Bill Richardson has changed his mind and now supports consideration of a regional transportation district to raise taxes to finance the Rail Runner commuter train— an idea Richardson firmly rejected in September.
    Richardson's office issued a statement Thursday night saying the state Transportation Commission has "made a compelling argument that there is strong support for these districts to help pay for operations and maintenance" of the Rail Runner.
    In September, Transportation Secretary Rhonda Faught proposed a regional transit district under which voters in Santa Fe, Bernalillo, Sandoval and Valencia counties would be asked to approve a $25 million gross receipts tax increase to pay for the train's operating costs.
    The next day, Richardson— who was out of state campaigning for president— nixed the plan, although he had signed legislation to permit such tax districts in 2004, specifying that the measure would allow for a tax boost to fund commuter rail.
    Richardson spokesman Gilbert Gallegos said at the time that the tax plan was "off the table" and that the governor expected to consider other options to pay for the Rail Runner. A few days later, Gallegos was even more emphatic— he said the tax idea was "off the table forever."
    Richardson's Thursday statement was issued after the Journal asked for comment on a news release issued by Lt. Gov. Diane Denish commending the Transportation Commission for a letter to Richardson in support of establishing a regional transit district to support the Rail Runner.
    "The Rail Runner is a premier transit system that deserves the support of the citizens most likely to take advantage of it," Denish said.
    The commission's letter had not previously been made public, but the Transportation Department later provided a copy. All six Transportation Commission members signed the letter, dated Wednesday
    The letter asked Richardson to "consider supporting the establishment" of a regional transit district to support operations and maintenance of the Rail Runner.
    The commission said it was basing its request on "the strong public support for the establishment of such a district" during public meetings around the state by a transportation task force.
    "We believe the formation of a Regional Transit District would serve the interests of the traveling public and the citizens of New Mexico by addressing operational and maintenance needs of the Rail Runner," the letter said.
    "Additionally, such a district also meets the important need of including local communities and governments to ensure the success of this very important public project."
    The statement from the Governor's Office said Richardson "has agreed to the request from the Transportation Commission" after hearing from commission members, Denish and the Mid-Region Council of Governments, which oversees Rail Runner operations.
    The Governor's Office said the Transportation Commission's task force "thoroughly reviewed funding options during its deliberations."
    Commission Chairman Johnny Cope, a major financial backer of Richardson, could not be reached for comment Thursday night.
    The Rail Runner now runs between Belen and Bernalillo at an operating cost of $9.5 million a year. More than $8 million of that is paid by the federal government, but that funding disappears in 2009. That will happen as operating costs are projected to rise to $20 million a year with the extension of service to Santa Fe.
    At a commission meeting Wednesday, Cope brought up the tax district issue. He said he would ask commissioners if they wanted to sign a letter in support of a regional tax district.
    "I think this is the best way to fund the commuter rail," Cope said.
    Lawrence Rael, director of the Mid-Region Council of Governments, told the commission the idea of having communities served by the Rail Runner pay its operating costs "clearly resonated outside the (rail line's) corridor."
    There was no commission vote on the issue before a Journal reporter left the meeting, when the commission went into a closed executive session.
    Denish said Thursday evening she supports allowing voters to decide whether to raise taxes to fund the Rail Runner.
    Asked if her news release and the commission's letter were coordinated to give Richardson an opportunity to change his position on the tax district idea, Denish said: "That's certainly not my intent."
    "I have not had a conversation with the governor about the Transportation Commission's letter," Denish said.
    Denish said she had heard about the letter and expressed her support on the matter in a conversation with Cope.
    While Denish's news release focused on creating a transit district for the Rail Runner, she said voters statewide should be allowed to approve the creation of transit districts.
    "I'm not saying increase taxes," Denish said. "I'm saying let communities decide."
    The Journal's Colleen Heild and Mark Oswald contributed to this report.