The Chronicle‘s Rad Sallee reports that METRO is drawing scrutiny for possibly shortchanging the city of Houston and other local entities on “general mobility” fund transfers:
The Metropolitan Transit Authority and the city of Houston are trying to answer a $44 million question.
The city contends that under a 1999 contract between them, Metro is supposed to set aside 25 percent of its sales tax revenues for “general mobility” purposes such as street improvements and traffic signals for Houston, Harris County and 14 smaller cities in the agency’s taxing area.
The $44 million represents the difference between what Metro allocated for Houston in fiscal years 2000-2002 and what the city’s share would have been if 25 percent of the tax revenue had been set aside for general mobility, said Susan Bandy, Houston deputy director of public works.
Instead, about 19.5 percent was set aside in those three years. The share was back to 25 percent in 2003 and has stayed at that level since, she said.
“I have gotten no explanation,” Bandy said.
The contract language appears to provide wiggle room for Metro to pay less than the agreed-upon share. It says Metro “intends” to allocate 25 percent but that it is “subject to Metro’s commitments for transit-related operational expenditures and capital project expenditures.”
Bandy and Mayor Bill White said a new contract being negotiated will tighten the language.
“I made it clear,” White said Tuesday, “that on my watch we would interpret that the 25 percent was going to be paid. I did not consider it very meaningful if it was ‘only to the extent available.’ “
Let’s hope Mayor White follows through on that statement (unlike his predecessor, who strangely enough, now heads the board of a bank). Until now, it seems like about the only person who’s been pressing METRO on its general-mobility funding obligations has been local watchdog Tom Bazan.
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