As Rob Nikolewski over at Capitol Report points out in a story, the Rail Runner is going to suck up ever larger quantities of taxpayer cash in the years ahead, including two $235 million balloon payments which come due in a bit more than a decade.
We’ve previously outlined the myriad reasons to cut our losses by shutting down the Rail Runner, but these $235 million balloon payments must be paid no matter what.
Moving forward, the Legislature must demand that any major infrastructure project be financed with regular, even payments over the years, not with balloon payments that force future legislators and governors to deal with previous decisions.
Rail Runner isn’t a problem, you just don’t like competition to automobiles and people having freedom in traveling.
How about freedom to keep your own money, and not have some corrupt sob spend it for us on pet projects to satisfy other pinkos.
What about the “pinko” road in front of your home?
I don’t like it. Would love to privatize it. My homeowners association could do it for a fraction of the cost.
That doesn’t change the situation that it is there regardless of economic conditions.
If you want to complain about some thing being mismanaged fine, but that is quite different than genocide.
Presumably these $235M payments are bond repayments. If so, there will be nothing to prevent New Mexico issuing new bonds at the time to pay off the old bonds. So – situation unchanged.
Bonds must be repaid – either as a result of a sinking fund set aside for the repayments, or by issuing new bonds. And by the rate of inflation in the USA, the purchasing power value of the repayments will be little more than half the current purchasing power value. A good deal for New Mexico, if not for the lenders.
Yes, I suppose new debt could be issued to pay off the old. That would keep the Ponzi scheme going for awhile longer. Statistically, our inflation rate is not that high. I don’t know that relying on the federal government to inflate away the problem is a sound approach.
Paul, you still conveniently over look the economics of road in front of your home.
So until you are honest about roads, you have no right to comment on railroads!
A road is a public service, however it’s efficiency is infinitely higher than a rail in a rural area (not LA) based on usage and quantity of people served. This is an example of mass transit design concepts that work in a higher density area forced down our throats in NM. Too much money for any level of return. Even if the RailRunner never pays it’s way, the debt was self-serving for the previous Gov.
You’re over looking freight, though freight trains share the same tracks as passenger trains.
Yes, the freight railroads which are profitable own and maintain the tracks. Amtrak forces these companies to “share” their tracks at a bargain-basement price.
Actually they don’t.