McCrory – Transportation “Plans”

 McCrory’s plans for transportation are to do less than is currently done in the state, and he touts a 25-year plan he implemented as Mayor of Charlotte that went more than twice over budget:

 “When elected, Pat McCrory will bring private sector and government leaders together to create a descriptive 25-year transportation and infrastructure plan to send a clear signal to the business community of the state’s future investment in roads, railroads, bridges, ports, airports and other infrastructure. Pat McCrory’s 25-year plan will be a specific action plan to allocate money based on project worthiness and will require relative performance metrics to measure improvement over time.” (Patmccrory.com, accessed 7/11/12)

 The State of North Carolina Already has a 30-Year Plan: The Statewide Long-Range Plan, also known as the 2040 Plan, will serve as a blueprint for transportation planning and investment over the next three decades. Because transportation projects can require years to plan, design and build, NCDOT must look ahead 25-30 years to identify the transportation needs of our state. The 2040 Plan focuses on the policies and programs that are needed to enhance safety, improve mobility and reduce congestion for North Carolinians, as well as addresses all types (modes) of transportation for which NCDOT has responsibility: highways, aviation, ferries, rail, bicycling, walking and public transit.” (NCDOT, accessed 7/11/12)

 McCrory Often Takes Credit for Developing a 25-Year Plan in Charlotte that Doubled in Projected Budget During his Time as Mayor

 “I understand that we must have a governor that builds the infrastructure needed for the future in anticipation of growth not in reaction to growth. As a mayor, I developed a 25 year plan anticipating growth and not reacting to growth.”  [NC Bankers Association Forum, 3/11/08]

•  “And state government has waited far too long in so much of their planning and infrastructure structure. And that’s why during my first year as mayor twelve years ago, I implemented a 25 year land-use, transportation plan to extend and anticipate what our future transportation needs are going to be.”  [Stand Up and Vote Forum, 4/17/08]

• “And I’m an advocate of mass transit, and ten years I’ve caught holy grief as mayor for introducing a twenty-five year transportation plan and investing in an enhanced bus system and a light rail system.”  [Manufacturing Summit Speech 6/10/08]

• In March 2002, the Charlotte Observer ran a column written by McCrory in which he shared credit with other organizations for producing a 25 year plan: “During my seven years as mayor and through the partnership with four City Councils, the business community, and thousands of citizens, we have increased job creation, reduced crime, enhanced neighborhoods, and produced a comprehensive transportation plan for the next 25 years, and all without a property tax rate increase.” [McCrory column in Charlotte Observer, 3/29/02]

• “Initiated a 20-year transportation and land-use plan to keep Charlotte moving and reduce urban sprawl.” [http://www.mayorpatmccrory.com/issues/transportation.asp]

Price Tag Doubled In Two Years for Charlotte’s 25-Year Transportation Plan; Went From $3.57 Billion to $7.26 Billion.  The Charlotte Observer reported, “Last Monday, the Charlotte City Council Transportation Committee received a cost update on its 25-year Transportation Action Plan. The plan, approved by the City Council less than two years ago, was estimated to cost $3.57 billion over the life of the project.  Monday's updated cost: $7.26 billion.  If you are keeping score at home, that's more than a 100 percent increase in two years.  How did that happen?  The biggest change between the original plan and the update is that construction costs have been escalated by 3 percent a year to reflect future cost increases. The original plan was in 2005 dollars.”  [Charlotte Observer, 3/2/08]

Cost Estimate for Lynx Blue Line Doubled. McCrory Responded That Cost Overruns Are Common in Transportation Programs.  The Charlotte Observer reported, “The estimated cost of the Lynx Blue Line jumped from $227 million in 1998 to $463 million when it was completed. City officials blamed contractors for much of the overrun and for related design flaws.  In an interview after the debate, McCrory responded that cost overruns are common in transportation programs…” [Charlotte Observer, 4/16/08]

• 2007: McCrory Admitted He Should Have Discovered Mismanagement of the Light-Rail Line Earlier. “So what's this mayor's problem? The short answer: cost overruns. The original cost estimate for the South Corridor rail line was $227 million; the latest figure is $462 million. Why? Some mismanagement by contractors for the transit agency, which McCrory admits he should have discovered earlier. But mostly inflation -- especially ferocious nationwide run-ups in cement, metal and other construction costs.” [Neil Peirce column, 8/26/07]

• June 2008: McCrory Admitted That There Were Rampant Cost Overruns and Delays and That the Blue Line Was Called “the McCrory Line.” “I implemented, for example, the light rail line and expanded our bus system…Sadly during the 4 years of construction, we had serious cost overruns, and we had delays…They were calling the light-rail line the McCrory line, and it wasn’t a complement.”  [NC Bar Association debate, 6/21/08]

• 2007: Light Rail Line Cost “Twice the Original Estimate.” “The Queen City opened its new light rail line two weeks ago, the first such metro system in North Carolina and one that cost more than $462 million to build…the numbers are unlikely to add up to a wise use of public money, said David Hartgen, professor of transportation studies at UNC-Charlotte. Hartgen isn’t impressed by initial ridership figures, noting that planners initially predicted 18,000 passengers per day before halving that estimate as the project moved forward…Is that worth all those millions of dollars, Hartgen asks. Especially, he adds, when the project ended up costing more than twice its original estimate?” [Greensboro News and Record, 12/12/07]

• McCrory Admitted That the Light Rail Line Went Over Budget and “We’ve Gone Over Budget On About Every Road for the Last Two Years.”  In an April candidate forum, McCrory said, “I’ve gotten hit from the right and from the left. In fact, as I’ve stated before, there’s a commercial right now on the radio that I heard up here saying, well I went over budget on the light rail line. We did go over budget on the light rail line. By the way, we’ve gone over budget on about every road for the last two years because of the incredible increase in construction cost, steel cost, and concrete cost.”  [NC Go! Forum, 4/15/08]

• McCrory Said He Was “Very Upset” that the South Rail Line Was Over Budget.  In a March 2007 episode of “The Inside Story with Mayor Pat McCrory,” McCrory said, “we’re within months of opening up the South Rail Line. And yes, it is over budget, and I’m very upset that it’s over budget.”  [Pat McCrory Radio Show 3/25/07]

June 2008: McCrory Said China Was to Blame for Rampant Cost Overruns on His Light-Rail Line. “And I took a lot of heat from people on the right and on the left.  I implemented, for example, the light rail line and expanded our bus system.  I took a half-cent sales tax to our voters to make the decision as to whether or not they wanted to invest or not.  Sadly during the 4 years of construction, we had serious cost overruns, and we had delays, because of the China market right at the worst time.  They were calling the light-rail line the McCrory line, and it wasn’t a complement.”  [NC Bar Association debate, 6/21/08]

• But McCrory never blamed China before for the $200 million cost overrun.  He had previously said that cost overruns were common to all transportation projects and placed blame on contractors and design flaws.

• The Charlotte Observer reported, “In an interview after the debate, McCrory responded that cost overruns are common in transportation programs, including the state roads built by Smith's construction company.” [Charlotte Observer, 4/16/08]

• The Charlotte Observer reported, “The estimated cost of the Lynx Blue Line jumped from $227 million in 1998 to $463 million when it was completed. City officials blamed contractors for much of the overrun and for related design flaws.” [Charlotte Observer, 4/16/08]

• ONLY 25%-50% of the cost overruns could be blamed on increase prices for concrete and steel:  On 3/7/05, the Charlotte Observer reported, “Worldwide demand for building materials -- particularly in China -- has pushed steel prices to historic highs. Builders say they noticed steel prices rising around fall of 2003. By spring 2004, some prices had doubled. Ready-mix concrete prices, meanwhile, rose 12 percent last year…Perhaps the most notable example is the Charlotte Area Transit System's south corridor light-rail line, which will go from uptown to north of Pineville. Estimated in 2001 to cost $331 million, today the price has leaped to $427 million, a 29 percent increase. Between 25 and 50 percent of the increase is due to concrete and steel, transit system spokesman Olaf Kinard said.” [Charlotte Observer, 3/7/05]

Charlotte Business Journal: Federal and State Funds Covered $206 Million of $462.7 Million Cost for the South-Corridor Light Rail Line. “When voters approved a half-cent sales tax for transit in 1998, the south-corridor line was projected to cost $227 million. Since then, project estimates have steadily escalated, and last month officials pushed the price tag up by $36 million, to $462.7 million. Federal and state funds are paying about $206 million, with local funds supplying the rest. The line is slated to open in November 2007.” [Charlotte Business Journal, 10/23/06]

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