PMFORUM Breaking News
Breaking News from around the world of project Management
Wednesday, June 24, 2009
Midwest USA and California are Front Runners for $8B in Rail Cash from US Government
Reported by Ted Koval, PMP in Omaha
According to an Associated Press article, written by Michael Tarm, high-speed rail plans in California and the Midwestern USA appear to be front runners in the race for $8 billion in stimulus cash, based on federal government criteria released on 17 June 2009 that favor projects with established revenue sources and multi-state cooperation.
Eight Midwest states have cooperated closely to promote a network, with Chicago as its hub, that would join 12 metropolitan areas within 400 miles. Karen Rae, deputy administrator of the Federal Railroad Administration (FRA), stopped short of naming favorites during an interview with The Associated Press in Chicago, but she praised Midwestern states for their cooperation and pointed to California's bond issue.
"California by having the bond has a step up," said Rae, who added that many factors would determine final distribution of the stimulus money. The FRA's 68 pages of rules also seek projects that would reduce regional highway and airport congestion and create jobs, especially among lower income Americans.
Mehdi Morshed, executive director of the California High-Speed Rail Authority, was upbeat about the federal guidelines, saying he did not believe anything in them might undermine his state's bid. "If you expect to get billions of dollars from the federal government, they are reasonable criteria," he said.
Missouri Governor Jay Nixon, a supporter of the Midwest network, said he was encouraged by the latest release, in part because of the emphasis on regional cooperation. "Clearly we were benefited by the criteria that were laid out today," Nixon said. "We are not the caboose on this train."
US states will have to move fast to get a share of the funds, with the FRA guidelines setting a July 10 deadline for pre-applications and an Aug. 24 deadline for most final application documents. The FRA intends to release the first round of grants by mid-September.
Any
region can present a long-range plan, but the FRA has highlighted 10
major corridors that cover lines in Texas, California, Florida, the
Pacific Northwest, the Midwest, the Gulf Coast, the Southeast, northern
New England, Pennsylvania and New York.
The latest guidelines call for detailed cost-benefit analyses to be submitted with applications, but Randal O'Toole, of the free-market oriented Cato Institute in Washington, D.C., said deadlines coming so quickly one after another will make it impossible to scrutinize the submissions. "It's hard for me to imagine federal authorities are going to take these analyses seriously. said O'Toole, a longtime critic of government-backed programs. "There's no time for that."
President Barack Obama laid out plans in April for high-speed rail he said would help dramatically change the way Americans travel. Even advocates concede the $8 billion isn't nearly enough for a wholesale change in passenger-train service, something that would require hundreds of billions more. But backers hope the stimulus money, as well as $1 billion a year for five years proposed for high-speed rail in the 2010 federal budget, will lead to more funding in the future.
The Midwest project foresees upgrades of three existing routes: Chicago-St. Louis; Chicago-Madison, Wisconsin, via Milwaukee; and Chicago-Pontiac, Michigan, through Detroit. Later, they would upgrade a St. Louis-Kansas City, Missouri route. The governors of the eight Midwest states - Illinois, Indiana, Iowa, Michigan, Minnesota, Missouri, Ohio and Wisconsin - wrote Transportation Secretary Ray LaHood in April appealing for money for the region, one of the hardest hit by the recession.
To View Michael Tarm's Article in its entirety, please see:
http://www.google.com/hostednews/ap/article/ALeqM5i0OD7AJj2mfsgxLnuvfyMrUSj75AD98SONI00
Photo Sources:
http://www.dot.state.mn.us/passengerrail/onepagers/midwest.html
http://www.dot.state.mn.us/passengerrail/highspeed.html
According to an Associated Press article, written by Michael Tarm, high-speed rail plans in California and the Midwestern USA appear to be front runners in the race for $8 billion in stimulus cash, based on federal government criteria released on 17 June 2009 that favor projects with established revenue sources and multi-state cooperation.
Eight Midwest states have cooperated closely to promote a network, with Chicago as its hub, that would join 12 metropolitan areas within 400 miles. Karen Rae, deputy administrator of the Federal Railroad Administration (FRA), stopped short of naming favorites during an interview with The Associated Press in Chicago, but she praised Midwestern states for their cooperation and pointed to California's bond issue.
"California by having the bond has a step up," said Rae, who added that many factors would determine final distribution of the stimulus money. The FRA's 68 pages of rules also seek projects that would reduce regional highway and airport congestion and create jobs, especially among lower income Americans.
Mehdi Morshed, executive director of the California High-Speed Rail Authority, was upbeat about the federal guidelines, saying he did not believe anything in them might undermine his state's bid. "If you expect to get billions of dollars from the federal government, they are reasonable criteria," he said.
Missouri Governor Jay Nixon, a supporter of the Midwest network, said he was encouraged by the latest release, in part because of the emphasis on regional cooperation. "Clearly we were benefited by the criteria that were laid out today," Nixon said. "We are not the caboose on this train."
US states will have to move fast to get a share of the funds, with the FRA guidelines setting a July 10 deadline for pre-applications and an Aug. 24 deadline for most final application documents. The FRA intends to release the first round of grants by mid-September.
The latest guidelines call for detailed cost-benefit analyses to be submitted with applications, but Randal O'Toole, of the free-market oriented Cato Institute in Washington, D.C., said deadlines coming so quickly one after another will make it impossible to scrutinize the submissions. "It's hard for me to imagine federal authorities are going to take these analyses seriously. said O'Toole, a longtime critic of government-backed programs. "There's no time for that."
President Barack Obama laid out plans in April for high-speed rail he said would help dramatically change the way Americans travel. Even advocates concede the $8 billion isn't nearly enough for a wholesale change in passenger-train service, something that would require hundreds of billions more. But backers hope the stimulus money, as well as $1 billion a year for five years proposed for high-speed rail in the 2010 federal budget, will lead to more funding in the future.
The Midwest project foresees upgrades of three existing routes: Chicago-St. Louis; Chicago-Madison, Wisconsin, via Milwaukee; and Chicago-Pontiac, Michigan, through Detroit. Later, they would upgrade a St. Louis-Kansas City, Missouri route. The governors of the eight Midwest states - Illinois, Indiana, Iowa, Michigan, Minnesota, Missouri, Ohio and Wisconsin - wrote Transportation Secretary Ray LaHood in April appealing for money for the region, one of the hardest hit by the recession.
To View Michael Tarm's Article in its entirety, please see:
http://www.google.com/hostednews/ap/article/ALeqM5i0OD7AJj2mfsgxLnuvfyMrUSj75AD98SONI00
Photo Sources:
http://www.dot.state.mn.us/passengerrail/onepagers/midwest.html
http://www.dot.state.mn.us/passengerrail/highspeed.html