Add Austin’s Capital Metro to the list of transit agencies that have gotten themselves into serious financial trouble because they insisted on building an expensive rail transit line. After blowing $300 million on a commuter-rail line and other questionable improvements, Capital Metro is heavily in debt and lacks the resources to fund bus and other planned expansions.
High-cost transit: Scheduled to begin operating in March, the tracks are built, the vehicles are not yet paid for, the system isn’t running, and no one knows when service will begin.
Just a few years ago, the agency had $200 million in the bank. But its CEO considered that a liability, not an asset, because “everyone in town thought we were rich, and they were coming after it.” He argues that blowing a bunch of money on unnecessary projects was necessary to protect the agency’s assets.
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