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"Princes
and governments are far more dangerous than other
elements within society." --Niccolo
Machiavelli
In
my last Bacon’s Rebellion column, “The
Politics of Cake” (July 24, 2006), I
mentioned the unprecedented $1.5 billion earmark
passed by the House of Representatives as an
amendment to H.R. 3496. Rep. Tom Davis, R-11th,
was the driving force behind this ultimate prize
in pork-barrel politics.
Davis’
efforts earned him the Citizens Against Government
Waste (CAGW), Porker
of the Month award. The CAGW press release
naming Davis porker king, illustrated why
providing the Washington Metropolitan Area Transit
Authority (WMATA) additional federal funds is
throwing good money after bad.
The
CAGW stated: “Congress has bailed out WMATA
three times since 1967, costing a total of $6.2
billion. A series of reports in The Washington
Post in June 2005 detailed how Metro
mismanaged $1 billion in projects. Metro spent
$383 million purchasing faulty new subway cars
that broke down and needed repairs as often as the
old ones they were replacing. Hundreds of millions
of dollars were wasted renovating cars and
escalators many of which were made worse than
before.”
CAGW
believes that WMATA repairs and improvements
should be paid for by passenger fares, local
governments, and competitively awarded federal
grants. WMATA also can cut costs with market-based
reforms implemented through competitive
contracting programs.
But
the $1.5 billion focus of the CAGW is only half of
the story. The actual amount called for being
turned over to WMATA in the Davis amendment is
$3.0 billion. The amendment requires local
governments to come up with an additional $1.5
billion in dedicated sources of funding.
Local
governments certainly do not have that kind of
cash available. To meet their half of the bargain,
local governments would face enormous pressure to
raise taxes. And the tax most likely to be raised
to meet this WMATA commitment would be the sales
tax.
Raising
the sales tax in Northern Virginia would come on
the heels of another sales tax increase, which was
enacted just two years ago. Coupled with
unprecedented raises in local property taxes, the
doubling of gasoline prices, recent interest
hikes, and other inflationary pressures, Northern
Virginia residents — particularly those on a
fixed income — will find it hard to make ends
meet.
Not
so, says Davis. In a strongly worded letter
replying to a critical
editorial that was published in the Examiner
on July 19, Davis maintained that “‘dedicated
revenue’ does not mean the same thing as a
“new tax.” This is vintage Davis, making
another disingenuous political statement. Davis
knows well that cash-strapped local governments
will have no choice but to raise taxes to meet
this financial commitment.
This
has been a though time for Tom Davis. A Washington
Post exposé, “Wife,
Friend Tie Congressman to Consulting Firm,”
recently disclosed that his wife, state Sen.
Jeannemarie Devolites Davis, R-Vienna, receives
$78,000 a year from a consulting company to work
with technology firms seeking government
contracts. Not bad change for allegedly as little
as 10 hours of work per week.
According
to the Post, the company, ICG Government,
which was founded by a close friend of Davis,
appears to be the conduit between Davis and the
award of federal contracts. ICG has a record of
satisfied clients, who say the firm has provided
them with access to the congressman and his staff.
With
all this negative press lately, why would Davis
risk the ire of fiscal conservatives by proposing
such an enormous infusion of federal and local
funds for the ailing and mismanaged WMATA? Davis
is known to have political ambitions for statewide
office; this is the sort of bill that could kill
his chances for garnering votes across the
commonwealth.
To
find the answer one must dig deep into the Federal
Transit Administration’s (FTA) Guidance for
Transit Financial Plans. Davis is a big backer of
extending Metro heavy rail to Dulles airport. He
has gone out of his way to ensure that the federal
government will cough up a big portion of the
funds required to build this extension.
No
wonder Davis and Rep. Frank Wolf, R-10th, panicked
a few days ago when the talk of approving a tunnel
through Tysons Corner hit the press. In a strongly
worded letter to Gov. Tim Kaine (D), Davis and
Wolf warned that a tunnel would delay the project,
raise its costs, and imperil key-federal funding
for the 23-mile extension.
Wolf,
Davis and Sen. John Warner (R) had intervened once
before to exempt the Metro extension from
guidelines upon which the Federal Transportation
Administration must use to decide whether or not
the project qualifies for federal funding.
Notwithstanding the waiver secured by their
previous intervention, the FTA guidance requires
20-year projections of system operating revenues
as well as operating and maintenance costs to
ascertain whether WMATA can operate and maintain
the proposed project.
Because
heavy rail projects always lose money, the FTA
assumes that new projects will put a new burden on
local funding sources. Accordingly, transit
agencies are required to develop new revenue
streams or tap existing sources to cover the
ongoing deficit.
WMATA
clearly does not have existing sources. Davis’
amendment is designed to give WMATA a dedicated
source of funding so the proposed Rail-to-Dulles
extension can qualify for federal financing.
Why
would Davis jeopardize his political future so
that Metro can be extended to Dulles airport? The
answer may be simple, although well hidden from public
view. Could it be that a lot of folks — many of whom are Davis’
major political contributors — stand to make
billions along the path of an extended Metro
subway system?
--
August 7, 2006
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