Everyone from the Wall Street Journal to Reason magazine to Planetizen seems to be worried about the future of the St. Louis Loop Trolley. Nearly everyone in St. Louis agrees that it was a failure, but the Federal Transit Administration has demanded that the city keep running it or repay the $37 million in federal funds used to build it.
The trolley trundles down Delmar Boulevard. Photo by Paul Sableman.
There is supposed to be a good reason for the federal “claw-back” policy: if local officials know they will be required to fund operations, they might be reluctant to ask for federal funds to build a project in the first place. Unfortunately, elected officials have time horizons measured in election cycles, so they really don’t think far enough ahead to worry about operating costs. Continue reading
