DOT wants $624M more federal rail money - not $461M less

RALEIGH -- As a House committee prepares today to debate a Republican proposal to have the Perdue administration return $461 million in rail stimulus funds to Washington, Perdue's Department of Transportation is asking Washington for $624 million more.

North Carolina would use the new funds to:

replace outmoded train stations in Charlotte and Raleigh,

build new ones in Hillsborough and Lexington,

add more freight and passenger service between Raleigh and Charlotte,

complete the environmental studies and purchase an abandoned CSX rail corridor for a new high-speed shortcut from Raleigh to Richmond, for trains that would travel at speeds up to 110mph, and

make rail safety improvements between Raleigh and Charlotte.

The new application seeks a share of $2.4 billion in funds that became available after Florida's governor killed a high-speed rail project between Tampa and Orlando, and sent the money back.

The application was filed as the House Transportation Committee prepared today to debate a bill by Rep. Ric Killian and 12 other House Republicans to kill North Carolina's high-speed rail program, and to join Ohio and Florida in sending the money back to Washington. (Wisconsin's governor also canceled projects and rejected federal funds last year, but he recently joined North Carolina in applying for a share of the Florida money.)

North Carolina secured $461 million in federal stimulus grants last month after fighting off eleventh-hour efforts by Norfolk Southern Railway to extract new concessions -- easy terms on a federal grant for an unrelated rail project in Illinois, and a pledge that NCDOT would ignore court orders unfavorable to Norfolk Southern -- in exchange for its signature on a related rail operation agreement.

The Obama administration has committed $520 million to North Carolina in stimulus funds for high-speed and intercity passenger rail, and negotiations are under way for the remaining $25 million grant announced last year. This money comes without requirement for any matching state funds for capital improvement, but the state is committed to pay future maintenance and operation costs.

The new application mentions the possibility that matching state capital funds will be required. Depending on the Federal Railroad Administration's decision, the state's match could be between $9.6 million and $159 million of the total cost.

"Should the application result in grant offers, [DOT] will consult with the General Assembly, municipalities and other implementing partners to provide non-federal matching funds," DOT's application said.