Texas State Railroad bond idea floats around Austin
BY TERRIE GONZALEZ

A new option for funding the Texas State Railroad may be on the table for consideration.

A $1 billion bond package designated for capital improvements among several state agencies is being discussed in Austin as the House and Senate conference committee work out the differences between their two versions of how to fund state government for the next two years.

George Bristol, president of Texas Coalition for Conservation, told the Cherokeean Herald by phone Tuesday morning that a bond package is being discussed in Austin this week as a possibility.

"Historically speaking, major ticket items like the Texas State Railroad or the Battleship Texas, which are capital intensive, have been done with bond issues."

He said the idea is in the formative stage and he does not know what the final outcome will be. "Things can be put together in conference at the last minute." Or the idea for a bond package could be abandoned.

He said he senses from the Legislature that "everybody wants to do something for the railroad," which is why parallel scenarios are being pursued. "If one option goes down, there is another available," he said.

With the discussion of a possible bond package that voters would be asked to approve in November, the Texas State Railroad faces one of five possible outcomes:

+ The Texas Parks & Wildlife Dept. has a Legislative Appropriation Request pending for $11.8 million, which would operate the train and make repairs.

+ State Rep. Chuck Hopson (DJacksonville) has a $7.6 million rider attached to the appropriations bill which would be used to fully fund the railroad for two more years.

+ Senate Bill 1659 and House Bill 3133 could be approved which will create a rail authority and pave the way to privatize the Texas State Railroad.

One-eighth of the train's assets will be given to a private operator each year that performance goals are achieved.

+ The TSR could be turned into a static display, at a cost of approximately $2 million.

The idea of asking voters to approve bonds is so new this week that it caused one high-ranking TPWD official to muse aloud, "Is this a bond package to keep the railroad in the hands of TPWD, or is this how the state will fund the up-front money to privatize the train?"

One of the components of SB 1659 and HB 3133 calls for the state to fund $12 million to the rail authority so that capital improvements to the tracks can be made.

If the bond proposal trumps SB 1659 and HB 3133 and keeps the TSR under state control, then Save Texas Parks supports the idea.

"An overwhelming majority of the people across Texas do no want to give their railroad away. If a bond package, including the funding for the Texas State Railroad, could be presented to the voters, this would seem the proper way to proceed with this issue," said Michael Banks, president of Save Texas Parks.

TPWD learned in 2001 with the passage of Proposition 8, an $800 million bond program, that having voters approve bonds is not the final hurdle.

TPWD is still holding $49 million in unspent bond money, but the Legislature has borrowed against those funds during previous sessions. The money can't be spent until the Legislature authorizes the release of the bonds.

That same source, who asked not to be identified, pointed to recent newspaper editorials in the San Antonio Express-News, Houston Chronicle, Fort Worth Star Telegram and Bryan Eagle.

"The people of Texas want to see their state parks funded," he said. "State parks might be a 'little deal' to a few big people, but they are a 'big deal' to a lot of little people. These legislators are going to have to live with their votes."