How Washington region leaders can score a transit touchdown for the ages (Hint: it’s not funding a stadium)

TransitOpinionBy Bill Pugh (Guest Contributor) September 5, 2023

Orange Line train passing in front of RFK Stadium by SounderBruce licensed under Creative Commons.

Last month, both Maryland Governor Wes Moore and Lieutenant Governor Aruna Miller traveled all the way to Ashburn, Virginia, to meet with Washington Commanders NFL team executives. Virginia Governor Glenn Youngkin went to make a photo op there too.

Hopefully, these leaders, who have a major say in our region’s Metro system, have also stopped in DC to meet with WMATA General Manager Randy Clarke to discuss Metro’s future. Maryland and Virginia have each proposed hundreds of millions and perhaps a billion dollars in taxpayer subsidies for football stadiums, as both states and the District of Columbia hope to land a new Commanders arena. Meanwhile, our Metro system, like many transit systems in the US, faces a funding deficit that would lead to catastrophic service cuts for the region.

We haven’t heard proposals from our elected officials yet on how they will close the Metro funding gap, but we have heard a lot from them about the Commanders. Which public investment should our leaders prioritize?

$2 per rider to save Metro versus up to $29 per Commanders game fan in subsidies

The Coalition for Smarter Growth (CSG) crunched the numbers and found that saving the Metro system (rail, bus, and paratransit) would cost less than one-tenth per user compared to the public subsidies proposed for a new Commanders stadium.

Here’s the math for closing the $750 million Fiscal Year 2025 Metro Operating Deficit.

$750 million increased subsidy ÷ 133 million annual passenger round trips = $5.64 per rider

Shares by state (assumes current relative shares of Metro operating subsidy):

Subsidizing the Commanders Football Team Stadium:

State stadium subsidy ÷ (10 home games X 68,500 seats X 30 years) = per game fan subsidy

With increased Metro operating aid from the federal government unlikely in the current political climate, our state and local governments have to step up and work together to help Metro close its budget gap and start crafting a long-term solution. Meanwhile, a public financing package for the Commanders would be paid for by a single jurisdiction (DC, Maryland, or Virginia) in a bidding war. DC for example, will be paying off bonds for Nats Park through 2028.

For the analysis, CSG assumed full stands in an average-sized new football arena over a 30-year stadium agreement, similar to the team’s tenure at FedEx Field. We used an approximate mid-range stadium subsidy proposal and a low-range proposal based on the legislation in last year’s Maryland and Virginia general assemblies. Mayor Bowser and the DC Council have not developed a stadium financing proposal due to differing opinions, including on whether the RFK stadium site is the right place for it. But the Bowser administration recently launched a study to examine the possibility.

The economic benefits of a healthy Metro system

Many studies have shown the limited net economic benefit of subsidizing football stadiums with their small number of home games each year. But the benefits of maintaining a healthy Metro system are enormous, even with recurring annual public subsidies.

Image from WMATA, Future Financial Planning FY2025-2035, Finance and Capital Committee presentation, June 22, 2023, slide 5

In addition to WMATA’s data above, a recent Northern Virginia Transportation Commission study also showed the broader benefits of WMATA and other local Northern Virginia transit for the state of Virginia: generating $1.5 billion annually in personal income and sales taxes, and 5% of the general fund revenues. The study attributes $1 billion of the total to Metrorail.

Plus, FedEx Field and a number of DMV sports venues depend on Metro and their fans appreciate its convenience.

Subsidizing Metro is a much better deal for taxpayers

CSG carried the comparison between stadium and Metro subsidies further, looking at all annual state/local subsidies to Metro necessary to cover existing and future needs, both operating and capital:

All are much less than $17 to $29 per game fan that we calculated would accrue from stadium subsidies.

In response to the inevitable complaints about transit subsidies, it’s important to note that all transportation modes require various forms of public investment, but subsidies for and externalities of driving, car ownership, and related infrastructure are generally much greater than those for other modes.

The clock is ticking for DMV leaders to save Metro

The Metropolitan Washington Council of Governments has said they will coordinate a regional effort on Metro’s funding issues. However, if elected officials are going to step up, they need to hear now from their constituents. CSG encourages GGWash readers to contact their state legislators and local elected officials to tell them that your priority is funding Metro, not another stadium.