In a Reston Patch article today about the County's budget problems, one local resident commented, ". . . We can't kick the can down the road anymore," said resident Jenifer
Madden. "We need to start to face our fears and our problems. If we
don't, it's going to hurt our economy in a big way."
In fact, this comment is more true than the Board or county residents, including Ms. Madden, probably realize.
The Fairfax County Board of Supervisors has been counting on
economic development along the Dulles Corridor over the next 20 years, particularly in Tysons
and Reston, to be the long-term cash cow that bails it out of an increasingly
serious financial situation stemming from excessive spending. Developers
have been whispering in their ears for years that all their intense new
development around the corridor's Metro stations will bring in big tax revenues, but that is only a small part of the story, and may not be true.
No examination of
infrastructure costs. Both the Board
and the developers have ignored the costs of the added infrastructure that
development will require up to now. The forecasted costs are looking pretty large. The Tysons
planning committee has put a $2.4B price tag on the costs there alone over the next 20 years--and
that's up by half from the County staff’s forecast two years ago. The Reston TF is still avoiding any thought
of implementation issues as it considers overwhelming growth, but ought to be thinking of needing at least half what
Tysons will need, maybe more to include the needed new trans-corridor road and
pedestrian crossings. So, where is the $4 billion or more going to come from?
Plummeting growth
forecasts. Forecasts for
growth in Fairfax County have plummeted in recent years. The fact of the matter--as forecast by GMU's
Center for Regional Analysis--is that the economic growth in Fairfax County
looks far less rosy than developers' dreams.
- In 2008, GMU forecast a 51% growth in population and an 88% growth in jobs for the Tysons planning task force for the 2010-2030 timeframe.
- In mid-2010, GMU forecast 26% growth in population and a 44% growth in jobs--exactly HALF their forecast from two years earlier—for the Reston planning task force over the same 2-year period.
- In October 2011, GMU forecast 13% growth in both population & jobs in its base case (comparable to above) and a 28% & 27% respectively for population & jobs if the County pursued an aggressive workforce housing program. This forecast accounted for the recession that was over by then.
- In February 2012, GMU reduced its 20-year forecast again, this time by a third: 9% population, 8% jobs in base case; 19% and 18% respectively with a strong workforce housing program. This accounted for prospective federal spending cuts, they said.
Exponential toll
increases. In addition, of course, MWAA’s
traffic and revenue forecast for the Dulles Toll Road now calls for jacking
tolls into the $10-$20 range each way.
It explicitly forecasts up to a 27% reduction in DTR usage, beginning
with an 18% usage reduction next year when tolls are forecast to double. On that basis, we have forecast that some
30,000 vehicles per day will divert to local streets—a number that remains
essentially stable through the next two decades. Nonetheless, over the mid- to long-term, that
reduction may partially reflect decisions by people to not take jobs or residence
along the Dulles Corridor because of the high tolls, thereby further
diminishing economic growth in the Corridor, a factor not figured in any of the
GMU calculations. Certainly property
valuations will be less than they could be with more moderate toll hikes, and
the possibility exists that property values would decline outside the immediate
Metrorail station areas, especially in real terms.
Together, these trends for Fairfax County’s future are
extremely worrisome. Yet, the Board and
the County staff have not examined these trends and their potential impacts, at
least not in any publicly available assessments. In fact, they have been blindly kicking the
can down the road without seeing the financial cliff in front of them.
Yes, it's time for the Board to take off the blinders and
get serious about Fairfax's future financial health. The Board is NOT doing it well now, if
at all.
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