Durham can cover $58M shortfall for Durham-Orange light rail, leaders say
Durham County leaders now say they can afford to provide the funding for a $57.6 million shortfall in the Durham-Orange light rail project.
The $2.5 billion line will connect UNC Hospitals in Chapel Hill and North Carolina Central University in Durham with about 18 miles of stops. State and local contributions must make up half of that funding to receive the rest from the Federal Transit Administration.
The N.C. General Assembly initially capped the state's allocation at 10 percent of the construction costs, but reduced it to $190 million with a budget fix in June. That left a $57.6 million gap in the state and local contribution largely funded by a voter-approved sales tax, fees and planned private donations.
In a press release Monday afternoon, Durham County officials announced that transit revenues are "robust and sufficient" enough to make up the difference, and they'll begin seeking approval for the new funding plan at county commissioner meetings in the coming weeks.
"Durham County continues to remain committed to working closely with our Orange County partners for the successful implementation of the Durham Orange Light Rail Project, which will provide an important transportation option and better connect the people of our communities to jobs, healthcare and education," Durham County Board of Commissioners Chair Wendy Jacobs said in the statement.
On Monday evening, a group met to discuss the light rail decision.
"There was an outpouring of support from all sorts of leadership, all sorts of community members in Durham, and actually, throughout this region, saying how important this project is to the future of not just Durham and Chapel Hill, but the entire Triangle region," said John Tallmadge, the interim project director.
Durham and Orange leaders must approve the changes before the Federal Transit Administration's application deadline on April 30, 2019.
The project will also need to meet new state legislative deadlines from the same June technical bill that reduced the state's contribution. Meant as a technical fix that untangled a Catch-22 that required upfront commitments from the federal government, the bill requires the project to raise about $100 million from private sources by April 30, 2019.
But the new state law also says the Federal Transit Administration must commit its share of the funding by November 2019 – or risk it being struck from current and future versions of the State Transportation Improvement Program.
Planning and environmental studies for the light rail project have already cost the two counties about $88 million.
