No Plan to Fund Rails, Congress Is Notified

Pressing its opposition to Metro Rail, the Reagan Administration has notified Congress that it does not intend to distribute money already allocated for the Los Angeles subway and other mass transit projects--an action that will require votes by both houses of Congress to overturn.

For the Los Angeles subway project, the notice sent to Congress by the Office of Management and Budget affects $129 million that has been allocated by Congress over the past two years but withheld by the Urban Mass Transportation Administration. It is part of $429 million in federal funds needed by the Southern California Rapid Transit District to build the first $1.2-billion, 4.4-mile section of the subway from Union Station to Alvarado Street.

If either house of Congress does not vote to overturn it, the Administration action could further delay the beginning of Metro Rail construction, which RTD officials hope will take place early next year.

Supporters Dismiss Move

While the Administration move adds new obstacles to obtaining full funding for the first segment of the line, supporters of the subway on Wednesday dismissed the move as an “irritant” and “routine.” They predicted Congress would override the action within several weeks.

“It should be very easy procedurally to wrap it up,” said an aide to Rep. Julian Dixon (D-Los Angeles), a leading Metro Rail proponent.

“It is more hoops to go through,” said an RTD lobbyist, who asked not to be identified. “But they’re hoops we’ve already gone through once.”

Indeed, both houses of Congress have already indicated this year that they want the $129 million released.

The House last month approved a 1986 transportation bill that included language ordering the Urban Mass Transportation Administration to distribute the withheld funds and enter into a full funding contract with the RTD to guarantee the remaining funds for the first leg of the 18.6-mile downtown-to-North Hollywood commuter line.

New Language Likely

And the Republican-controlled Senate Appropriations Committee last week approved its version of the transportation bill, also including language calling for the $129 million to be disbursed.

The full Senate still must act on the measure and then a two-house conference committee will resolve differences in the two bills--probably next month.

Even if Congress approves that legislation, congressional sources said Wednesday that both houses will have to approve new language that would specifically override the Office of Management and Budget’s deferral action.

The deferral notice, contained in a letter sent to congressional leaders last week by the Office of Management and Budget, is the latest administrative effort by the executive branch to prevent new rail projects from getting started. Administration officials have said that because of the federal deficit and uncertainties about future transit funding, the government should not start major new rail programs it may not be able to finish.

Administration officials were not available for comment Wednesday, but Ralph Stanley, Urban Mass Transportation Administration administrator, said in an earlier interview with The Times that an attempt to defer funds was among several tactics he might attempt to hold up the new mass transit projects. He acknowledged there is congressional support for Metro Rail, but he said the Administration will continue to argue its case.

At this point, there is no congressional commitment to build anything beyond the first 4.4 miles of the Los Angeles subway. But Metro Rail supporters and congressional budget analysts are much more optimistic than the Administration that sufficient transit funds will be available in future years to complete the new rail systems.

The Administration’s proposed deferral of transit funds totals $223 million and would affect projects in several cities, including San Diego, St. Louis and Miami. Congressional delegations from those cities are expected to join the push to ensure that the funds are released.