If Iowa doesn’t act now, state may lose opportunity for passenger rail funds

DES MOINES – The wheels appear to be coming off the tracks for state support of passenger rail service from Iowa City through the Quad Cities to Chicago.

Despite a $230 million federal grant, plans for Amtrak service from Eastern Iowa to Chicago appear to be on a train to nowhere unless Iowa House Republicans agree to fund a $20 million state match.

Gov. Terry Branstad hasn't shut the door on funding the line, but has raised concerns about ongoing operating expenses and said again this week he'll leave the decision to the Legislature.

“We're really letting them sort that out between the House and Senate,” Branstad said. “My sense is from the House that they are absolutely, firmly determined that they are not going to do it.

“Now, I don't know at the end of the day whether there's any give on that or not,” he said.

It appears there isn't, according to House Speaker Kraig Paulsen, R-Hiawatha.

“I don't believe their arithmetic works,” Paulsen said about supporters' predictions that the state investment would lead to nearly 600 jobs a year during the construction phase and provide a $25 million-a-year economic stimulus to the region. “It's based on capacity (ridership) every single time the train runs.

“It just doesn't make sense to me,” he continued. “We're talking about tens of millions of dollars to cover 57 miles from Iowa City to Quad Cities when we've already got a train terminal in Mount Pleasant. And then you have an ongoing expenditure year after year after year of several million dollars.”

With the cost of gasoline approaching $4 a gallon and younger Iowans driving fewer miles than their elders, Nancy Quellhorst, president of the Iowa City Area Chamber of Commerce, said it's the right time to position Iowa at the forefront of changing travel patterns.

“Cars are seen as environmental villains … rather than offering the freedom they once did,” Quellhorst said. “And with the cost of gas, what better time to do this?”

She's pleased Branstad, unlike some governors, has kept an open mind on rail funding and said it would be unfortunate if lawmakers believe they are saving money by not funding the state's $20 million share of the project.

Senate Democrats' fiscal 2012 budget included intent language to appropriate $6.5 million a year for three years toward the state's share of the cost. House Republicans have stripped that funding.

“If (passenger rail) is a good idea and someone wants to do it, they should invest in it and do it,” Paulsen said.

Some lawmakers have suggested a decision could be delayed until next year.

However, Quellhorst warned this may the state's only chance to get $11.50 of federal funds for every $1 it puts into passenger rail if it waits.

“Many other states would like to take advantage of the funding,” she said. “This would be an opportunity lost.”

“Iowans are conservative by nature,” which may explain their reluctance to embrace passenger rail, Quellhorst said. Some may not be aware similar routes - the Quincy, Ill, to Chicago route that regularly operates at capacity, she said – are enjoying success.

Quellhorst also noted as a result of improvements already scheduled on the tracks passenger trains would use, an Iowa City to Chicago trip has been shortened by about 45 minutes to four hours and 15 minutes.

Iowa 1st District Rep. Bruce Braley, a Waterloo Democrat, has been lobbying Branstad, Paulsen and Senate Majority Leader Mike Gronstal, D-Council Bluffs, to get behind the project.

“This project will create hundreds of jobs in Iowa,” Braley said, and that will require “real leadership from the governor and the political willingness to work with the Legislature and get this done.”

Branstad wrote the congressman to say he shares legislators' concerns with the ongoing operating costs “particularly in light of the very difficult economic conditions and the need to cut other areas of the budget.”

He's encouraging Iowa City, the Quad Cities and other communities along the route to look for alternatives to a state subsidy “to make this project more acceptable to Iowa taxpayers and more fairly focus the operating costs on those areas of the state that would benefit from the project.”

But interest doesn't stop at Iowa City. Des Moines and Omaha have expressed interest in a Chicago connection, Quellhorst said.

“This is only the first generation of the project,” she said. “The route would be a tremendous gain not only for Eastern Iowa, but the rest of the state as well.”