COLUMBUS, Ohio (CGE) - It appears that defeated Gov. Ted Strickland will not willingly oblige the candidate who beat him last Tuesday in the same way that defeated Democratic Wisconsin Governor Jim Doyle will do for Republican Scott Walker who beat him.
At issue in Wisconsin, as it is in Ohio, is whether an out-going governor who backed his state's plan for high-speed rail, should freeze spending now in order to stanch the flow of millions more in taxpayer money being spent on a project the new governor, who included opposition to high-speed in his campaign, will shut down when he takes over in about two months.
Defeated Wisconsin Gov. Jim Doyle, in deference to Walker who campaigned against the high-speed train, suspended the spending on his state's project, the Wall Street Journal reported.
"At the governor's request, I have asked contractors and consultants working on the high-speed rail project to temporarily interrupt their work for a few days," Frank J. Busalacchi, secretary of the Wisconsin transportation department, said in a statement, according to the WSJ.
Kasich versus Strickland post election
In Ohio, where Kasich made Strickland a one-term governor, one Strickland administration spokeswoman continued to defend spending on the project Kasich has said is "dead" when he takes over.
“The governor fears that if we do not take advantage of this opportunity Ohio will become an island, disconnected from the rest of the country," Amanda Wurst said. She said the Strickland administration will not return the $400 million for rail on his watch. In a post-election challenge to Kasich, Wurst said, "If Governor-Elect Kasich wants to return the $400 million for the rail startup and send 16,000 jobs to another state, that will be his decision to make when he becomes governor.”
Kasich, a former congressman from Central Ohio who has told friends and foes throughout the campaign and in the days following his election last Tuesday that tough times will call for tough decisions, will soon call on Strickland to make the tough call and end spending on two studies underway on the 3C train plan.
Contracts with two consultants - Parsons Brinckerhoff and CH2M Hill - are to study the environmental effects of the train service and to work with freight railroads on sharing tracks, and are valued at up to $25 million.
Strickland's 3C plan has been criticized for many reasons, but tops among them are its very slow speed - an initial average speed of 39-mph that new estimates say can be 50-mph - its long one-way trip time that initially was over six and one-half hours but which new estimates say can be less than six, and its need for large, on-going yearly subsidies that no dedicated, dependable source of funds exists for despite ODOT's scouring of budgets to find one.
In what is shaping up to be the first post-campaign clash of personal wills and political agendas, Rob Nichols, a spokesman for Kasich, told CGE Saturday that a letter will be sent to Strickland soon that will ask Strickland to shut it down.
Nichols told the Columbus Dispatch, "Given that the train is dead under John, no additional state or taxpayer dollars should be spent on this project."
Strickland rail regulars believe the improbable
But Strickland's rail regulars continue to believe they can convince Kasich to postpone the inevitable, as comments made by Wurst and the chief spokesman for the Ohio Dept. of Transportation imply.
Responding to questions from CGE on Positive Train Control - which could add another $40 million to the 3C plan - and whether the contract ODOT signed with the two consultants working on engineering and design aspects of the 3C project, Varner, responding via email, echoed Wurst's statement that spending, for good reasons, will continue.
Scott Varner: "Right now, it is premature to speculate what action the incoming administration might take in terms of the $25 million grant-funded study and engineering work. As Governor Strickland pledged, we will work closely with the incoming administration during the transition.
"It should be noted that ODOT has continued to move forward on this project. The Federal Railroad Administration has just released a draft of its "Finding of No Significant Impact" (FONSI) - essentially agreeing with the Environmental Assessment (EA) that the 3C Passenger Rail Service would have no significant impact on the environment. You will remember that the EA was conducted last year as part of the grant competition for federal stimulus funds, which Ohio won. With the issuance of the FONSI, the initial National Environmental Policy Act (NEPA) phase of project development is complete. As part of this federally-mandated process, ODOT will need to host public meetings before the end of the year to discuss the next steps in detailed studies, documentation and design, and to seek public input on rail stations. This is all part of the first $25 million investment.
"With the anticipated change to this project under the new administration, the answers to your other questions may be moot... other than to say that all three would have been addressed as part of this phase of work.
"Just one last note.. what ODOT has undertaken under this administration was not simply 'change for change's sake' - I believe we have led a transformational effort to better connect ODOT's work to Ohio's economic engine, recognizing how transportation and the economy are inseparable. Over these next several weeks, our team hopes to share with the incoming administration the importance of these transformations and the major projects we have initiated, including our commitment to invest additional federal dollars into transit, our historic efforts to restore passenger rail, and the advances we have made in innovation and energy with new technologies and public-private partnerships."
New York, Florida eye Ohio funds
Varner and other rail supporters point to other states who are ready to take rail money Ohio may not spend and re-route it to their state's rail projects.
CGE received a media release from New York Gov-Elect Andrew Cuomo that asks Ray LaHood, Director of the U.S. Dept. of Transportation, to redirect more than $1.2 billion in high-speed rail money to New York.
It reads: "Governors-Elect in Ohio and Wisconsin Have Promised to Cancel Major Federally Funded Rail Projects in their Home States."
New York's Cuomo: “High speed rail is critical to building the foundation for future economic growth, especially Upstate. If these Governors-Elect follow through on their promises to cancel these projects, a Cuomo Administration would move quickly to put the billions in rejected stimulus funding towards projects that would create thousands of good jobs for New Yorkers."
Florida, awarded $1.2 billion for its high-speed rail line, placing it second behind California in FRA awards, has a powerful voice in Washington on its behalf who has railed against unworthy projects soaking up money that should have been directed to true high-speed projects.
Rep. John Mica, R-Fla., who has been one of the leading forces behind a plan to bring high-speed rail to Central Florida, and who is the presumed future chairman of the House transportation committee, is not a fan of slow-speed train projects like the 3C that demand big public subsidies.
Interviewed by the Tampa Tribune, Mica said of shifting funds around, "I will look at it with a critical eye and look at what makes sense," Mica told reporter Ted Jackovics. "The last thing we want is to build a dog that has to be highly subsidized by taxpayers."
Mica said Florida's project will "likely have to be tied to the private sector kicking in money beyond the $2.05 billion in federal funds designated to build the $2.6 billion, 88-mile route."
Although he's been a strong advocate for high-speed rail, Mica wants it used where it makes sense. “The [Obama] administration squandered the money, giving it to dozens and dozens of projects that were marginal at best to spend on slow-speed trains to nowhere,” according to the New York Times.
Pulling the plug on the 3C?
Asked if ODOT could pull the plug on 3C spending, reflecting what Wisconsin Gov. Doyle is doing, Varner said, "The contract language you are talking about is found in every ODOT contract of this nature as part of our 'Specifications for Consulting Services' (I have included the standard language below). While ODOT has the ability to stop future work on any major transportation project, the state would still be responsible for any actual costs and fees from the consultant for work authorized to be completed. The contracts with PB and CH2M Hill to do this work were executed earlier this Fall - work has been and is currently being done on the project.
Continuing, Varner said, "I believe the Governor's Office has made it clear that it is not our intent to return any of the $400 million federal grant back to Washington - nor send the ability to create thousands of new jobs to another state.
"At its core, the 3C Passenger Rail project is about job creation and economic opportunity - and bringing a proven job-generator to our urban centers (we have seen the success in other states). It is also an opportunity to offer real transportation choice to our citizens and improve Ohio’s position as a freight logistics and distribution leader for our businesses. Over the next several weeks, we will share this insight with the incoming administration"
Officials with All-Board-Ohio, a group closely allied to ODOT, that has pushed for the 3C at ever turn, are arguing completion of the 3C is a defense against a looming oil crisis and the high cost of oil it will bring.
Jim Wellman and Ken Prendergast, they dynamic duo associated with AAO, ask their friends and allies this question: "Is now really a good time to derail the development of an energy-efficient mode of transportation in the Midwest's busiest travel corridor between metro areas?
"To me, derailing 3C is akin to shunning a lifeboat in the face of this looming, iceberg-sized threat to our delicate economic security....," Wellman said in an email.
Kasich on "dead" 3C
In contrast to Varner's statement that it is "premature to speculate what action the incoming administration might take" with respect to the 3C, reporters got another confirmation this week that Gov-Elect Kasich is ready to stop the 3C dead in its tracks.
Responding to a reporter's question on it, Ohio Governor-Elect John Kasich, speaking at a gathering to announce his first three staff hires, shared a story about a toy train he saw in a deli in Plain City, in the final week of the campaign for governor.
Kasich has made clear from the start of his campaign that should he be elected governor, the 3C passenger rail train project now-defeated Gov. Ted Strickland and his state rail officials are continuing to push forward, with the help of $400 million in federal funds awarded in the process, would be "dead" upon his swearing in ceremony.
"That train was going around, and you know, I think that train goes faster than the 39 mph high speed train...that train is dead," Kasich said. "I said it during the campaign, it is dead. We are not going...now we believe in railroads, we believe in freight, we're going to have meetings with Norfolk & Southern, and we're going to have meetings with any of the railroads that come through the state of Ohio. We believe that rail, combined with highways, could be very valuable, and diverting any money away from that, in my opinion, doesn't make any sense. I am really excited about what's going to happen at Rickenbacker, very excited about what's happening in North Baltimore, and we have to figure out if there is a way, a practical way, to stop the train along the way so some of these communities can really benefit from rail. But passenger rail is not in Ohio's future."
Helping freight rail was the plan all along
One prominent Republican in the Ohio Senate who spoke with CGE on the 3C, said the Republican caucus' decision to not oppose the state applying for FRA high-speed rail funds was all about upgrading freight rail tracks.
State Sen. Bill Seitz told as much to Jon Craig in an interview for the Cincinnati Enquirer. Seitz, a lawyer from Green Township, said there’s no reason to return the $400 million if Congress amends its rules mandating the money go to passenger rail, an idea that is gaining steam with some capital hill officials.
Seitz and Statehouse Republicans, like Kasich, think the 3C passenger rail project makes no sense, and is a boondoggle in waiting. Because a great deal of the cost goes to upgrading existing freight rail lines, Seitz said many things may be possible with Ohio Congressman John Boehner taking over as the next U.S. House Speaker.
“It can’t hurt to ask,” Seitz told Craig. “John Boehner is a friend of mine.”
Contract "Termination"
From Varner at ODOT on contract provisions to stop spending on the 3C:
2.43 - Termination
The Director may terminate an Agreement at any time prior to its completion. The Director shall give written notice to the Consultant regarding anticipated Termination actions.
Total compensation to the Consultant, in the event of Termination, shall be made promptly by the Department for the total of all types of compensation earned by the Consultant. This includes the pro rata portion of the Net Fee, under the provisions of the Agreement to the effective date of said Termination, less any payments previously paid or in the process of payment by the Department. The Consultant also shall be reimbursed for the actual costs of its reasonable and necessary mobilization and demobilization expenses. All requests for earned compensation and for any other reimbursements shall be supported with acceptable cost accounting data and documentation of work completed, and shall be subject to an Audit by the Department. The Consultant shall make no claim for any other liability or compensation (including anticipated profit) from the Department by reason of such Termination.
While not confirmed by Varner, the presumption should be that the state also has the ability to modify or amend the authorized work to be done. Without such leeway, Ohio would have no resources other than to pay a vendor the full value of a contract even if work is not completed per reasonable scrutiny and standards.
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Comments
Well, at least John Kasich cannot stop high speed rail at Cedar Point, where high speed coaster trains reach speeds up to 120mph on the Top Thrill Dragster. A trip to the amusement park is as close as Ohioans will ever get to high speed rail if Kasich has his way.
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