LONG-SUFFERING motorists in Maryland were elated when newly elected Gov. Robert L. Ehrlich Jr. (R) speeded up a decades-long crawl toward an intercounty connector roadway. Mr. Ehrlich dubbed the Prince George's-Montgomery highway his top transportation priority, greased the skids for federal approvals and vowed to break ground in 2006. But the governor's plan to finance the $2.4 billion project ran into trouble in the General Assembly last week, and it needs retooling.
Mr. Ehrlich's payment scheme would rely on borrowing against anticipated federal highway funds for the next 15 years. That's not an unusual practice, but the degree to which Mr. Ehrlich was seeking to commit future federal funds to a single project is imprudent. Of the $2.2 billion in bonds that the administration hopes to issue, $1 billion worth would be borrowed against federal money. Paying that off would devour 20 to 24 percent of the federal highway money that Maryland expects to receive over 15 years, according to the General Assembly's policy analysis staff.
_____Today's Post Editorials_____
|
| |
|
Lawmakers rightly balked. Even if legislators with no direct interest in the connector bought this arrangement -- and then hoped that some federal money would be left over for their own projects -- how eager would they be to approve other important Montgomery and Prince George's transportation needs? How prepared is Mr. Ehrlich to come up with funding for a connector of another kind -- say, a rail transit route to link the two ends of the Red Line?
Maryland Transportation Secretary Robert L. Flanagan has been saying that the $1 billion in federal bonds would enable the state to speed up construction of the intercounty connector and thereby save $100 million in inflation costs for every year that the project is not delayed. That may be, but disagreement between the governor and the legislature can also produce costly delays. The Federal Highway Administration must sign off on a financial plan this summer if Mr. Ehrlich is to deliver on his promise to break ground next year and open the road to motorists in 2010.
In a meeting with editors and reporters at the Gazette newspapers last week, Mr. Flanagan said he could accept some changes in the formula. He should. Top lawmakers who have been objecting to the administration plan, including House Speaker Michael E. Busch (D-Anne Arundel) and Del. Peter V.R. Franchot (D-Montgomery), are talking about reducing the $1 billion bond figure to roughly $700 million and putting in about $300 million from the general fund. Senate leaders are talking $750 million, so compromise ought to be feasible.
Taking cash from the general fund without approving new revenue does mean shorting other spending. One partial fix would be a boost in the gasoline tax -- long overdue but underplayed by Mr. Ehrlich and the lawmakers. Still, mortgaging the future by borrowing bundles from anticipated federal funding is risky business, as officials in other states can attest. The intercounty connector must proceed, but with financial caution.
