Waste of the Day: Maryland Railway Will Cost Billions More Than Necessary
Topline: Development on the Red Line transit system in Baltimore has been paused and restarted by several governors since 2008. Now it’s finally being built, but it will likely cost at least $300 million more than if it had been completed years ago — and potentially $4.3 billion more.
Key facts: The Red Line will use either buses or light rail trains to connect East and West Baltimore.
Planning began under former Maryland Gov. Martin O’Malley with an estimated cost of $2.9 billion. The Maryland Transit Administration secured a $900 million grant from the federal government and spent $300 million of its own money on planning and land acquisition. O’Malley approved a new gas tax to raise funds, which taxpayers still pay.
But once Republican Gov. Larry Hogan took office in 2015, he canceled the project and repurposed the federal grant. Hogan later said, “Everybody in that transportation department said that project made no sense whatsoever.”
Current Gov. Wes Moore took office in 2023 and restarted the project’s planning phase.
The new price estimates are alarming. If the route includes a tunnel — as was originally planned by O’Malley — it will cost between $5.9 billion and $7.2 billion, the MTA estimates.
Without a tunnel, it would still cost between $3.2 billion and $4.6 billion. So even the cheapest outcome costs $300 million more than if the Red Line had never been postponed.
The cost could be lower if Maryland uses buses instead of trains, but the state is already looking into acquiring rail tracks.
Critical quote: The train will also serve fewer residents than it would have in the past, according to policy analyst Marc Joffe.
Joffe also points out that light rail trains “inevitably operate at a loss,” with a similar Baltimore line costing $52.6 million to operate in 2022.
Supporting quote: The Baltimore Equity Transit Coalition said the Red Line’s postponement is a civil rights issue comparable to Jim Crow laws.
In an open letter, they wrote that the system is “an historic opportunity … for job creation and economic growth” that offers “accessibility for disabled riders” and is “the most effective response to climate change.”
Background: Light rail trains also need to be maintained by rail technicians, who earn impressive taxpayer-funded salaries in Maryland.
In 2022, there were 11 rail technicians at the MTA making between $200,000 and $275,000, per OpenTheBooks.com.
In total, there were 882 MTA employees making six figures in 2022 with a total payroll of $271.5 million.
Summary: If Maryland was going to build what may be nothing more than a boondoggle, they should have at least built it efficiently.
The #WasteOfTheDay is brought to you by the forensic auditors at OpenTheBooks.com
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