Brian Litchfield, Director of Chapel Hill Transportation, made this important announcement on March 11th, 2024
“Good Afternoon – we are excited to share that Chapel Hill Transit recently met another critical milestone for the North-South Bus Rapid Transit (NSBRT) project (www.nsbrt.org). The President’s FY2025 budget recommends $138.3M in funding for NSBRT. This funding, along with the $8M we received previously, makes up the entire federal share ($146.3M) we need for the project. This funding amount still needs to be approved in a future federal transportation bill and we need to finalize the State/Local match. However, this is a huge step forward for this critical project.”
The DOT announcement said the following. “$138.3 million is recommended for the Chapel Hill Transit’s North-South Bus Rapid Transit Project, which will connect riders to several major activity and job centers, including the University of North Carolina at Chapel Hill, hospitals, and downtown Chapel Hill, and is intended to improve mobility and accessibility in the corridor’s low-income communities. The project includes 5.7 miles of exclusive bus lanes, stations, and the purchase of vehicles.”
Bus Rapid Transit is a transit technology that CHALT has championed for years. See this page to learn how BRT works. In addition, view a video ofthe Orange County Transit Forumorganized by CHALT that featured the challenges of light rail in favor of the far more cost-effective mode of Bus Rapid Transit. We congratulate Director Brian Litchfield and his team.
The next step is for the Town to obtain the matching funds from the state. That remains a large hurdle before the project can move to the implementation and procurement of transit vehicles. Last fall, the Transit Department briefed the Council and reported that the estimated capital cost for NSBRT had grown to approximately $200 million. Of that $200 million, an estimated $150 million was expected to come from the federal government (the maximum grant amount) and $34 million from state and local sources, resulting in a deficit of some $16 million.
While the president’s budget proposed $138m for NSBRT, the town previously received some $6 million, bringing the total federal commitment to ~$144 million; again, the Federal portion is capped at $150m. The suggestion at the time was that the deficit could be closed by only building the envisioned multi-use path for pedestrians and cyclists on one side of the corridor AND by purchasing diesel buses rather than electric ones.
It is not clear how “value engineering” will diminish the quality of the project. Such “value engineering” would reduce the environmental benefits of the proposed BRT line and also the mobility benefits. It also casts doubt on the feasibility of the “Greenways to Everywhere” approach. If Chapel Hill can’t afford to build out a main corridor when all this intergovernmental funding is available, how can it build them on its own?
Finally, in all probability, the cost of the project likely will rise between now and the currently envisioned construction date of 2027 – assuming Congress approves the funding on the envisioned timeline. If the start date keeps getting pushed back, the projected deficit will grow. We don’t know if money has been identified for operating the system after it is constructed. I’ve seen operating estimates of $6-$7 million annually. Where will that money come from, especially if the line is fare-free?
At the council budget retreat earlier this year, the town staff identified $14 m in existing capital needs for the transit system, including some unspecified amount for BRT. While transit funding hasn’t been part of town bonds in the past, it may become part of the envisioned bond proposal taking shape for 2025. Unfortunately, Chaple Hill has only an estimated $50 million in borrowing capacity for all needs over the next five years.
An important point we hope the Council has not overlooked is that no money has been identified for operating the system after it is constructed. Operating estimates are estimated at $6-$7 million per year. Where will that money come from, especially if the line remains fare-free?
Livable Chapel Hill supports this project and laments that while the inclusion of the project in the president’s budget is wonderful news, the project faces many problems that are intertwined with the town’s larger financial situation. The promise of BRT has been used to justify the intensification of development along the proposed corridor—we don’t want a result that is all development, and no transit. Bottom line problems can’t be solved if they are not acknowledged. We urge everyone to write their NC legislators for the state match.
Quotes from Brian Litchfield, and DOT Press Release. The author is Julie McClintock. See the Transit Partners Packet for lots more information.
3-28-2024 Partners Packet