The FasTracks Dilemma: Increasing Sales Taxes is the Right Solution

The Denver Region's ambitious public transit build out has run into financial difficulties. Due to escalating construction and right of way acquisition costs, the price tag for building out the current system has increased by almost $2 billion to $7.9 billion. Additionally sales tax revenues which are financing the system have been below forecasts due to the sluggish economy. If the system is to be built as planned by 2017, additional money will need to be raised. Otherwise the system will be scaled back or delayed.

Since the vote approving FasTracks in 2004, two other things have changed as well. First, gas prices have more than doubled from just under $2 per gallon to just under $4 per gallon with further increases likely to occur. Second, the urgency of reducing carbon emissions to stave off global warning has become increasingly clear.

The tax payers of the Denver Region have a right to be angry about the escalating price tag associated with the FasTrack system but at the same time its important to understand that the same factors which are driving up the cost of the system are increasing the economic value of public transportation. Denver needs the full FasTrack system now more than ever.

Cuts in the system would have adverse long-term implications: harming the region's economic competitiveness, reducing the value of the portions of the system that do get built due to a loss of interconnectivity, and slowing the region's embrace of denser, transit oriented real estate development.

Its worth noting that construction costs for many critically-needed large scale infrastructure projects grow beyond initial forecasts as was the case with DIA. However, RTD's track record in previous projects has been largely successful in keeping projects within planned time and budget commitments.

As painful as additional tax increases are, in this instance, they are the right public policy action to provide a better future for citizens of the Denver Area. It will be a tough sell to Colorado's frugal voters, but sales taxes should be increased by an additional .2 to .3 percent beyond the current 1 percent rate being used to fund FasTracks. This will support building out the full system on schedule by 2017.