State Republican budget could halt proposed passenger trains in Midwest

[thelakelander]

Plans for daily passenger train service between Iowa City and Chicago could be permanently derailed under a budget bill proposed by Iowa House Republicans. The Republican-sponsored budget package would not provide any state money needed to establish and subsidize operations for the route, almost certainly forcing the Iowa Department of Transportation to return a federal grant of $81.4 million already awarded for the passenger train project.

State Rep. Scott Raecker, an Urbandale Republican who will be chairman the Iowa House Appropriations Committee, said he is reluctant to provide taxpayer money for passenger train service, especially because of a projected need for ongoing government subsidies to run the train in future years. "We have to be cautious about making out-year commitments before we can fund things like K-12 education, which is $231 million short," he said.

However, Raecker said he anticipates that the Iowa City to Chicago trains "will be a point of discussion and debate as we move through the process, whether or not that should or should not remain in the bill." The Iowa Legislature, under past Democratic control in both chambers, committed $10 million for Iowa's share of the project. Lawmakers have been asked to appropriate an additional $10 million in startup costs. In addition, state officials estimated it would require $3 million annually in Iowa taxpayer subsidies to keep the trains running to Iowa City.

House Speaker Kraig Paulsen, R-Hiawatha, said he doesn't believe establishing passenger rail lines is the best use of tax dollars - state or federal. If passenger rail is going to be viable, it should be able to support itself, he said.

Iowa Senate Minority Leader Paul McKinley, a Chariton Republican, doesn't buy the idea that passenger rail projects should be financed with federal stimulus money.

"I can hire someone to dig a ditch, hire somebody to fill it in, and somebody would claim it creates a job, but does it really accomplish anything?" McKinley said. "I think that's the question we have to ask ourselves about passenger rail to Chicago."

full article: http://www.desmoinesregister.com/article/20110105/NEWS10/101050346/1011/State-Republican-budget-could-halt-proposed-passenger-trains