Suburban rail network causes friction

By MICHAEL A. LINDENBERGER - The Dallas Morning News - Friday, April 11, 2008

Elected officials and business leaders appeared no closer to a consensus Thursday over how to find at least $400 million it would take annually to pay for a huge suburban rail network.

A push to get the Legislature to permit cities to increase sales taxes by up to a penny to pay for the 239-mile rail network has failed in the past two sessions, but supporters insist the plan is more necessary than ever. Many of its key backers are pressing to put the issue before the Legislature again next year, though key Dallas area senators have said it is likely to fail again.

Thursday's meeting in Arlington only underscored the deep differences between elected officials and leading business interests over how to pay for the plan.

Top businesses, including Texas Instruments and other North Texas corporate leaders, have flatly opposed an increase of any amount to the sales tax rates.

Bill Alloway, president of the Texas Taxpayers and Research Association, said told those gathered Thursday that the business community remains flatly opposed to any sales tax increase. In a statement distributed at the meeting, the association said, "the case for increasing the cap on local sales taxes has not been made. We will continue to oppose any increase in that cap in light of the compelling state interest in the sales tax and the existence of other viable local options."

There were wide differences between elected officials as well.

"I don't think that there is a snowball's chance in you know where that the people of Collin County would support a sales tax increase," said Plano City Council member Loretta Ellerbe.

The leaders narrowed funding options to five options, and will meet again April 28 to discuss them. Those options range from continuing to push for a sales tax increase, to raising property taxes, to imposing car registration fees of more than $100.

The suburban rail service, if funded, would begin operating in 2025, or perhaps 2030, its backers said.
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