COLUMBUS, Ohio – A plan to restore passenger rail service between Cleveland and Cincinnati cleared its first political hurdle Monday over the objections of Republicans, who argued that Gov. Ted Strickland still hasn't made a case that the project is needed.
Democrats on the state Controlling Board voted 4-3 along party lines to approve spending $25 million in federal stimulus money to complete final engineering and design work on a project that, if successful, could prove to be a legacy of President Barack Obama's economic stimulus package in Ohio.
The vote was a temporary victory for Strickland, who says the project will create 250 immediate construction jobs and set the stage for higher-speed trains.
But Republicans said the project has too many uncertain costs.
Future support from GOP lawmakers on the panel will be crucial. State law requires a supermajority vote for capital improvements on passenger rail development, which the Strickland administration defines as physical assets – trains, tracks and stations.
"This is an illegal act," said state Sen. David Goodman, a Republican from Bexley who argued that Monday's vote should have required a supermajority, too. Afterward, he said he knew of no plans by the GOP to challenge the vote in court.
Goodman and other Republicans were also concerned that Ohio would have to repay the $25 million if the state later decides to pull out of the project. The Federal Rail Administration has publicly stated that Ohio would not be on the hook.
Matt Dietrich, executive director of the Ohio Rail Development Commission, told the panel that the time has come to proceed with final engineering so that Ohio can get the kind of detailed answers that critics are looking for. It will include data needed to make track improvements, and help the agency refine departure schedules and determine the top operating speeds at different points along the 255-mile route.
The analysis could take about 10 months to complete, said Scott Varner, spokesman for the Ohio Department of Transportation.
Obama awarded Ohio $400 million in January for a startup service connecting Cleveland, Columbus, Dayton and Cincinnati with trains that reach 79 mph. It was part of $8 billion in stimulus grants for 13 high-speed corridors and 31 states.
None of the projects appear to be in as much political trouble as in Ohio, where Strickland is running for re-election.
If Republicans derail the plan, it would be one of the most dramatic refusals of stimulus money in the nation. Ohio has until Sept. 30, 2011, to reach an agreement with Federal Rail Administration on how the money will be spent. The state must spend the entire $400 million by 2017 or forfeit the balance to other states.
Amtrak, which would likely operate the service, is on pace this year to surpass its record of 28.7 million passengers set in 2008. The agency cites an improving economy and high fuel prices as factors in ridership growth.
About 6 million people live along the Cleveland-Cincinnati route, making it one of the most heavily populated corridors without rail service in the Midwest.
Amtrak released a study in September concluding that the corridor has the demographics needed for successful operations, including population density and a concentration of colleges and universities.
Early estimates predict 478,000 riders in the first year of operations. The analysis was conducted by AECOM, a Los Angeles-based engineering firm that has worked on California's planned high-speed rail system.
Annual ticket sales are estimated at $12 million, with the state responsible for an additional $17 million operating subsidy.
The Strickland administration intends to cover the subsidy with a mix of train advertising, food and beverage services and a federal grant for the first several years of operations. But Ohio would likely need to come up with its own long-term funding source.
In Oregon, fees from vanity license plates subsidize the cost of running Amtrak trains. Michigan uses a portion of gasoline taxes and vehicle registration fees, and Maine uses a mix of federal grants and a sales tax on car rentals.