New South Shore expansion plan would first go to Lowell, then Valparaiso

The plan calls for the extension to be broken into two phases and may include a different route to Valparaiso -- one that connects Valparaiso to the main line at Gary rather than to the proposed southern leg at Munster.

Dobis and South Shore General Manager Gerald Hanas laid out the two-step construction plan to the state Committee on Tax and Fiscal Policy, the summer study committee tasked with reviewing the South Shore plan.

The two-phase approach calls for the roll out of the southern line to Lowell first, followed by the western leg to Valparaiso.

The Northern Indiana Commuter Transportation District is counting on $500 million from the Federal Transit Administration's New Starts program to fund half of the estimated $1 billion project. New Starts is the same program Valparaiso used to secure funding from to launch its express bus service to Chicago earlier this fall.

The New Starts program, however, has a minimum cost-benefit threshold that projects must meet in order to be considered for funding. Currently, the southern line, which would utilize existing railroad track, falls well under that minimum. The more expensive Valparaiso route, which would require building a new rail line along an existing right of way, does not meet the threshold, and brings the overall project just above it.

By splitting the project in two, it allows the Lowell branch to start construction right away and the Valparaiso leg could begin as soon as it meets the cost-benefit minimum, Dobis said.

Also, linking the Valparaiso branch more directly with the existing South Shore line could result in faster travel times, which would help bring the project under that minimum. NICTD expects to finish a study of the alternate Valparaiso route by the end of next month.

Funding still unclear

Building the extension in two parts would not affect the overall cost of the project, half of which would be funded by the federal government, the rest by state and local sources.

The committee did not discuss funding options for the project, which remains the biggest obstacle toward passage next year. Assuming $150 million in support from the Regional Development Authority, another $350 million for the extension must be found from state or local sources or a mixture of the two.

There was little support in the spring legislative session among the Northwest Indiana delegation for increasing the tax burden on local residents, and downstate lawmakers were reluctant to act without more local "skin in the game."

Next year's funding battle looks to be fought on slightly different terrain, however. The push for a regional rail system in central Indiana is picking up steam, which may auger for more inter-regional support in the Statehouse. But the economic downturn promises to put a pinch an already strained state budget.

Current Chairman of the House Ways and Means Committee Rep. Bill Crawford, D-Indianapolis, committed to backing the South Shore bill in the next session. Crawford is an important ally in the House, especially if Democrats maintain their slim majority in that chamber. Dobis said he hopes to have any "kinks" in the bill ironed out by the time it reaches the tough sledding in the Republican-dominated Senate.

Indy lines also may grow

But the secret password to General Assembly passage this year may be regional cooperation.

"We're very interested in working with you (to come up) with a good bill," said Christine Altman, chairwoman of the Central Indiana Regional Transportation Authority.

CIRTA is looking to put a rail line out to the northeast suburbs of Indianapolis and eventually extend regional mass transit options out in five other directions as well. It is also looking for New Starts funding, and wants to have options available for it to obtain non-federal funding.

Ehran Bingaman, executive director of CIRTA, stressed the need for a "toolbox approach" to state funding for mass transit, something that would allow communities their choice of funding mechanisms to meet their needs.

"When we see federal funds drying up, and state funds tightening, ... if we truly believe that mass transit is important, then we need to find a way to pay for it," Altman said.