Branstad says he’ll pull funds for Iowa City train

Gov. Terry Branstad remains skeptical of the potential of a passenger rail line connecting Iowa City and the Quad Cities to Chicago and signaled Jan. 26 that he won't include funding in the budget he unveils Thursday.

In particular, the governor doesn't want to lock the state into an ongoing subsidy of the line that is included in a $230 million federal passenger rail grant to Iowa and Illinois.

“I think that would be a terrible mistake to get into (a subsidy), especially considering the difficult financial situation we're facing,” he said after speaking at Transportation Day at the Capitol Jan. 26.

The federal government allocated $230 million of the project's $310 million total cost last fall, leaving Iowa and Illinois to cover the balance.

Illinois has committed $45 million toward the route's Chicago -Moline leg. The Iowa Legislature appropriated $11.5 million for planning and design work through 2012, but House Republicans have identified made that spending a budget-cutting target.

Branstad indicated he won't address participating in that grant in his budget message.

“I guess my feeling is that we have a very limited amount of resources available right now, so what we're going to be able to do is pretty limited,” he said. “I don't think it we have any money in the budget in the next biennium for this project.”

However, he didn't rule out participating because the state's $20 million commitment isn't needed until nearer the 2015 target date for service to begin.

Nancy Quellhorst, president and CEO of the Iowa City Area Chamber of Commerce, took at least some comfort from that, although she didn't want to say much before Branstad's official announcement.

“We're pleased that unlike Wisconsin and Ohio our governor is still considering rail,” said Quellhorst, whose group has led the campaign for the project. Beyond that, “it puts us at an awkward position to speak before the governor's office.”

While he sees a direct link between highway transportation improvements and jobs, Branstad is skeptical that the line will create many jobs once the construction is completed.

He also questions whether ridership in a rural state will justify the cost of state participation.

“This might make it easier for some people to get to college or travel to Chicago,” he said, but doubts many people will commute from Iowa to jobs in Chicago or vice versa.