• Purpose & Need /
  Project History
• Decision-Making Process
• Funding
• Environmental Process
• Schedule
• Alternatives
• Stations / Land Use
• Operations
• Ridership
• Vehicles
• Community Issues
• Public Involvement
• Safety & Security
• Parking / Traffic /
  Pedestrians / Bicycles
• Cost to Construct
• Maintenance Facilities

Funding

15. Who will pay for this project?

It will take a combination of financing - from the Federal Government through the Federal Transit Administration (FTA), from the State of Maryland through the Department of Transportation's Consolidated Transportation Trust Fund, and possibly from local governments and the private sector.

While some initial money has come from various federal transit formula funding programs, the vast majority of federal support for the Red Line will come from the FTA's Capital Investment Program for "New Starts." Funds are available for construction of new fixed guideway systems or extensions to existing fixed guideway systems. In order to become eligible for funding, projects must complete the major capital investment planning and development process, which looks at the results of an Alternatives Analysis, a set of established criteria and the degree of local financial commitment.

The New Starts program is a $1.5 billion discretionary fund for construction of new fixed guideway systems. While the federal match can be as high as 80 percent, FTA generally only pays only 50 percent or less of total project costs because of the competitive nature of this program.

The balance of funds will have to come from the state's Transportation Trust Fund (TTF) and possible contributions from local governments and the private sector. Mass transit is one of many transportation modes competing for TTF dollars. The fund was created in 1971 as a source of dedicated revenues to support the Maryland Department of Transportation - the MTA, State Highway Administration, the Maryland Port Administration, Motor Vehicle Administration and the Maryland Aviation Administration. TTF revenue supports all of the department's activities, including debt service, agency operations and capital projects. TTF money comes from motor fuel taxes, motor vehicle titling taxes, motor vehicle fees, bond proceeds and the department's operating revenues, including transit farebox receipts.

16. Can Maryland afford to build a Red Line?

Demand for transportation projects in Maryland far outpaces available revenue. Priorities and goals are set in the six-year Consolidated Transportation Program (CTP). As part of a continuing statewide planning process, a Draft CTP is developed annually in concert with Maryland's 24 political subdivisions. This Draft CTP is presented to local elected officials and citizens for review and comment. The CTP is then revised and submitted for approval as part of the Governor's budget to the General Assembly in January.

Every year, priorities within the CTP are adjusted, based on local and regional needs and available revenue. If the Red Line gains federal approval, Maryland will have to revise priorities within the CTP or add additional funds to the Transportation Trust Fund.

17. Has money already been budgeted to build the Red Line?

In the current Consolidated Transportation Program (CTP), covering the six-year period 2007 to 2012 (state fiscal years) for all modes of transportation across the state, funding projected for the Red Line includes:

A portion of the federal funds shown above was provided to Maryland in the recently enacted federal surface transportation authorization bill known as SAFETEA-LU (Public Law 109-59). The majority of the $249.6 million, though, requires development of a Full Funding Grant Agreement. This is a special type of grant agreement the Federal Transit Administration uses when it makes a major investment in a new fixed guideway system.

18. Why can't this money be used to improve schools and community centers?

The two major sources of funding for the Red Line, the Federal Transit Administration's Capital Investment Program and the State of Maryland's Transportation Trust Fund, get their money from dedicated revenue accounts that can only be used for transportation projects. For instance, Transportation Trust Fund revenue supports all the activities of the Maryland Department of Transportation - debt service, maintenance, operations, administration and capital projects. By law, this money cannot be re-directed into other government programs, such as school construction or community centers. Similarly, dollars contributed by the federal government for the FTA's Capital Investment Program are designated for transportation purposes, specifically construction of new fixed guideway systems or extensions to existing fixed guideway systems. The money is not available for other purposes.

19. If the funding needs include payments from local governments will my taxes go up?

At this time there are no local government contributions to the Red Line. Should local funds be required to partially underwrite the project, both Baltimore City and Baltimore County would have to identify funding sources. This could be done by reducing local expenditures and redirecting that money into funding for the Red Line or by raising additional local revenue through new or higher fees or taxes. The choice of which road to follow will rest with Baltimore City and Baltimore County officials - if this contingency ever arises. So far, that has not been the case.