In 2008, L.A. Mayor Antonio Villaraigosa promised voters that extending the city’s Red Line subway would relieve congestion. Voters believed him and supported a sales tax increase to build the line. Now the environmental impact report finds that the subway line will increase rush-hour traffic speeds on parallel streets by, at most, 0.3 mph (p. 3-34). Not surprisingly, some voters — or at least writers at the LA Weekly — feel ripped off.
LA Metro’s response quibbles about the cost of the project. LA Weekly says “Metro plans to use up to $9 billion in sales taxes” on the project, while Metro says the construction cost will be only $4.0 to $4.4 billion. Metro is being disingenuous as both statements can be correct if (as is likely) Metro borrows enough money to incur $4.5 billion or so in interest and finance charges. (Half of the overall payments on a 30-year loan at 5.3 percent turn out to be interest.)
