Should C-TRAN’s Board reject paying for light rail?

John Ley
For Clark County Today

There is currently an important debate happening in city and County Council chambers around Clark County. Do we direct the C-TRAN Board to accept paying for TriMet Operations and Maintenance (O&M) costs or not? At stake is $7 million annually to cover O&M costs for the 4,390 feet of the light rail extension in Washington state.

Keep in mind that over the past decade, Portland’s TriMet has had $6 billion in operating losses. Its 10-year financial projection is to burn through another $1.1 billion in cash.

“TriMet is drowning in costs and they’re looking for Washington taxpayers to throw them a life ring,” said radio talk show host Lars Larson. “I say let ‘em sink, kill the billion dollar choo choo, and build a new bridge that actually serves the needs of citizens.”

On March 11, members of the C-TRAN Board will discuss and vote on a resolution to refuse to be obligated to pay any TriMet light rail costs. The Camas City Council has taken it a step further unanimously passing a resolution against light rail on the bridge. “The City states its opposition to the Light Rail extension as part of the I-5 Interstate Bridge Replacement project and urges this component to be removed in its entirety,” the resolution concludes.

How it began

The current discussion began in June 2022 as part of the Interstate Bridge Replacement Program (IBR) discussions on a Modified Locally Preferred Alternative (MLPA) for the project. TriMet’s JC Vanneta told Washington and Oregon legislators “TriMet will not be responsible for O&M costs resulting from the extension into Vancouver.”

The C-TRAN Board of Directors agreed to the MPLA with the condition that the Clark County transit organization would not be responsible for any light rail costs. “C-TRAN’s position has consistently been that C-TRAN will not be responsible for costs related to operations and maintenance of light rail in Clark County, including any park and ride facilities that may be constructed as part of the project,” said then CEO Shawn Donaghy.

Just over a year later, it was reported TriMet was seeking nearly $22 million per year in O&M cost reimbursements. The $21.6 million TriMet is seeking would equal about $11.8 million per mile. In FY 2022, TriMet spent $128.1 million on operations for its entire 60-mile MAX light rail system. That equals about $2.1 million per mile. Why is the IBR seeking over five times that amount?

The simple answer: they’re losing money every year. The 2024 budget planned for the Portland transit agency to lose money every year for the next decade. Their Annual Report indicated an operating loss of $850 million. 

Economist Joe Cortright said operating funds must be identified prior to getting federal money for the capital costs of transit related to the I-5 Bridge replacement project. “Neither C-TRAN nor TriMet is willing to commit any funds of their own to this project,” he said. “This is especially important because the USDOT (Federal Transit Administration) won’t fund the capital construction of a project that has no source of operating funds.

“TriMet’s board considered their endorsement of the project last Wednesday,” Cortright continued.  “They voted to go ahead, provided somebody else pays for its entire costs.”

As part of the I-5 Bridge replacement project, TriMet is demanding 19 new light rail vehicles for the 1.83 mile extension of the existing Yellow Line. They report an expected cost of $190 million to $290 million for those new vehicles, part of which would be paid for by Washington taxpayers, as the federal government will only cover half the cost. 

The TriMet Board of Directors approved “a number of significant conditions that must be satisfactorily addressed prior to Program completion.”  Those conditions included the 2013 significant expansion of the TriMet Ruby Junction facility in Gresham, an upgrade to Portland’s Steel Bridge, and issues regarding the proposed Vancouver waterfront light rail station.

The current debate repeats a pattern of TriMet and Oregon trying to get Washington taxpayers to pay for costs that rightfully belong to Portland and Oregon taxpayers.

The current battle

In November 2024, Vancouver Mayor Anne McEnerny Ogle as chair of C-TRAN Board, introduced a resolution to reverse their position against paying for TriMet light rail O&M costs. Citizens should know that C-TRAN has been operating buses into Portland since 1981. TriMet and Portland have never contributed a penny towards operating costs of C-TRAN service.

Hard questions were asked by Camas Council Member Tim Hein regarding increased financial risk to C-TRAN. In the end, the board eliminated their objection to paying for light rail O&M costs. Several members had reservations.

Then in December, the bill came due. TriMet’s plan included $7.2 million per year from either C-TRAN or Clark County taxpayers. 

“I’m having sticker shock here,” said Vancouver City Council Member Bart Hansen. Councilors Michelle Belkot (Clark County) and Tim Hein (Camas) pushed back against the TriMet demand after details of the $21 million (total) in projected costs were revealed.

The financial projections expected passenger fares to cover 25 percent of O&M costs. If that doesn’t happen, then taxpayers would have an additional financial burden. Presently farebox recovery for TriMet is about 10 percent, indicating taxpayers cover 90 cents of every dollar of costs. C-TRAN’s Scott Patterson said “the estimated farebox recovery of 25 percent is overly optimistic.”

“This looks to me to be C-TRAN subsidizing TriMet,” Belkot said. 

“It seems to be in complete conflict with what I’ve known in the past,” said Hansen.

The TriMet FY2024 Annual Report indicates passenger fares have dropped from $123 million in FY2015 to $59 million. Passenger fares cover 7.9 percent of the $931 million annual operating costs. Last year, TriMet lost $850 million, up nearly 30 percent from 2021’s loss of $656 million.

In the past decade, TriMet’s operating losses have increased from $383 million in 2015 to $850 million in 2024. During that decade, total operating losses exceeded $6 billion. With seemingly never ending losses, TriMet is seeking “help” from all taxpayers. 

But the feeling coming from the various city councils has been “no thanks” when it comes to bailing out TriMet. Last week the Washougal City Council indicated they reject paying for light rail O&M. On Monday evening, the Battle Ground City Council will weigh in.

Without Washington tax dollars, can light rail survive as part of the project?