Questions & Answers

In August 2006, TTA announced that it would not file a “New Starts” report on the Regional Rail Transit Project with the Federal Transit Administration (FTA) for Federal FY 2008.  Below are some frequently asked questions since this announcement.

Q: Is rail in the Triangle dead?

A: No, there is a need for the rail project because of the region’s growth, congestion and air quality concerns.  The rail project is ready to move forward.  About 93% of the land needed for the project has been acquired.  Federal funding through the New Starts program is unavailable to TTA because more stringent project rating standards have been introduced under the new regulations.  A replacement source for the Federal funding will be necessary to complete the project. 

Q: What factors negatively affected the project’s funding stream and led to the recent decision by TTA’s Board of Trustees? Who or what is to blame?

A: Inflation was a factor, increasing the project’s cost about $6.5M a month during 2005.  Increased global demand and the impact of successive hurricanes, including Katrina, have led to record high cost increases for concrete and steel.  Recent changes in the FTA’s “cost-effectiveness” formula have made it tougher to qualify for federal funding under FTA’s standards.  These new standards were not in place when FTA authorized TTA to enter the New Starts process, in 2003. 

Q: Could TTA pursue this same funding source in the future?

A: The TTA Board could, at some point, decide to re-enter the New Starts process with the FTA.  To receive federal funding through the New Starts process, a future rail project would have to meet the federal standards in place at the time that a full funding grant agreement is requested.

Q: Are there other options that TTA could pursue without this federal “New Starts” money?

A: The TTA Board is committed to working with the Triangle community to look at the reality of the transportation issues and infrastructure needs that challenge the region now and in the future. 

Q: How much was spent on the rail project?

A: About $148 million dollars in federal, state and local funds have been spent on the rail project.  Another $15-20M is obligated.

Q: What happens to the land purchased with local, state and federal funds?

A: Based on discussions with the FTA, the land will be held for future transit use.  Any early disposition of land would be premature.  The TTA Board would decide any future disposition of the property now under TTA’s control.

Q: What happens to the proceeds from the 5% rental car tax?

A: The N.C. General Assembly authorized the rental tax in 1998.  The TTA Board of Trustees voted to use the revenues from the 5% rental car tax for the Regional Rail Transit Project.  While the region and TTA look for alternative funding sources, the money will continue to be held to advance transit services for the Triangle community.

Q: What does this mean for TTA?  It’s role?

A: TTA was created by the NC General Assembly to implement safe, clean and affordable, customer-oriented public transportation which provides mobility, promotes economic development and protects the environment.  In fulfilling this role, TTA’s regional bus service is seeing record ridership (up 16% compared with 3.2% nationally).  Ridematching and vanpooling also continue to be successful.  TTA provides regional transit planning assistance to cities, towns and counties in the Triangle, and the regional organizations that govern transportation and transit planning.  TTA will continue to work with the Triangle community to provide future transit alternatives including regional rail - a decision made by the community more than a decade ago.

Q: What should the region do next?

A: The need for transit services is not going away.  Any commuter who sits in traffic understands the need for implementing more dependable alternatives. The region must work together to implement current and future transportation solutions for the people who live and work in the Triangle Region.

There are a number of potential revenue streams, including public/private partnerships and financing alternatives.  TTA will work with the community to explore the best options for the Triangle Region. 

If you have additional questions, please contact Garold Smith, TTA Director of Communications & Public Affairs at (919) 485-7419.  Email: rail@rideTTA.org.