Innovative financing for transportation infrastructure, notes from a seminar

[flickr]photo:6290737454[/flickr]

The Metropolitan Planning Council graciously provided me with a free entry to a seminar in October about infrastructure funding and financing at their office at 140 S Dearborn. The seminar featured Rob Puentes of the Brookings Institution, Illinois Senator Heather Stearns, and Dr. Paul Hanley a professor at the University of Iowa. They talked about three innovative ways to fund construction of highways, airports, transit, and other capital-intensive projects: the surface transportation bill (Puentes), public-private partnerships (Stearns), and distance-based taxing (Hanley).

This article will be presented in two parts: presentations from Puentes and Stearns today, and Hanley on Friday. It is my intention that by presenting that discussion to readers, you can learn about some of the ways infrastructure in the United States is paid for.

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Englewood Flyover broke ground today – will save 7,500 hours of Metra delays annually

Updated October 11, 2011, to add link to Transportation Secretary LaHood’s blog.

Photo by ABC7 reported Charles Thomas, taken this morning. In this photo are Mayor Rahm Emanuel, Gabe Klein, and Governor Pat Quinn. 

I woke up this morning and saw Gabe Klein tweeting about a groundbreaking ceremony for CREATE P1 (known as the Englewood Flyover), one of the nation’s most important projects (actually a group of 67 projects). It separates freight from passenger rail traffic, and upgrades facilities for smoother and faster switching and travel. The Englewood Flyover will elevate Metra Rock Island District trains (north-south) over Norfolk Southern and Amtrak trains (east-west) in the Englewood and Grand Crossing neighborhoods.

According to the project description on the CREATE website“Metra riders experience more than 7,500 annual passenger hours of delay” – this will be eliminated.

The bridge will be built big enough to carry three tracks (where there are two now) over five tracks (where there are three now). The bridge will begin at about 5700 S LaSalle Street and end at about 6900 S Princeton Avenue. Recovery/stimulus money will pick up most of the construction tab:

The $133 million for the Englewood Flyover includes $126 million in federal funding leveraged through $6.6 million from Governor Quinn’s six-year, $31 billion Illinois Jobs Now!, the largest capital program in state history. A consortium of railroads involved in the CREATE program earlier contributed $3 million toward design costs. (Decatur Tribune)

Illinois Jobs Now! is the capital expenditure plan from Governor Quinn that was signed in 2009 and supported by bonds (debt), and fee and tax increases. The event was also an opportunity to promote President Obama’s American Jobs Act, as Transportation secretary Ray LaHood attended alongside Representative Dan Lipinski and other “politicos”.

Ray, on his Fast Lane blog, wrote more about the impact on jobs:

 A strict “Buy America” requirement ensures U.S. manufacturers and workers receive the maximum economic benefits from this federal investment.  This means that the Englewood flyover project will create nearly 1,500 jobs.

View Englewood Flyover in a larger map