Official Says U.S. May Not Fund Valley Subway Link

The second-ranking official in the U.S. Department of Transportation told a San Fernando Valley business group Tuesday that she was pessimistic about prospects for federal funding of the third leg of Metro Rail that would bring the subway system to the Valley.

“I’m not real optimistic about whether you’re going to get it because the requirements are so extensive,” Deputy Transportation Secretary Elaine Chao told a delegation from the Valley Industry and Commerce Assn.

“Given the budgetary constraints at this point, that’s a massive undertaking.”

Chao, a one-time California investment banker, also pointedly mentioned cost overruns on the first phase of Metro Rail construction and cited Valley community opposition to the third leg, which would extend the northern terminus from Hollywood to North Hollywood.

“We hear there seems to be a great deal of disagreement about where it should go, and whether some of the user groups support it,” she said.

She noted that although elected officials generally support the subway, the Los Angeles County Board of Supervisors is split on the issue. Supervisors Mike Antonovich and Pete Schabarum are opponents.

Chao’s comments did not pertain to the second, 6.7-mile phase of construction extending from Wilshire Boulevard and Alvarado Street west to Western Avenue and Wilshire and north to Hollywood Boulevard and Vine Street in Hollywood. The Bush Administration recently signed a full-funding agreement to commit $667 million in federal funds to this portion.

Congress, which allocated money to the first two phases even when former President Ronald Reagan did not include any Metro Rail money in his proposed budgets, appears equally supportive.

VICA, which represents 250 Valley firms, has taken a leading role in efforts to extend the subway to the Valley.

Members of the VICA government relations committee, who are in Washington meeting with congressional representatives, Administration officials and lobbyists, took Chao’s remarks in stride. They vowed to continue pushing for federal Metro Rail funds.

“Very frankly, she couldn’t promise anything at this stage of the game,” said VICA Chairman David W. Fleming, a Van Nuys attorney. “There’s too much up in the air.”

Specifically, Fleming mentioned Propositions 108, 111 and 116 on the June 5 ballot, which would increase the state gasoline tax by 9 cents per gallon and allow the sale of billions of dollars in rail construction bonds.

In March, the Los Angeles County Transportation Commission, which earlier had authorized building the subway from downtown to North Hollywood, voted to extend Metro Rail west from its North Hollywood terminus to the San Diego Freeway along a railroad freight right of way.