A version of this news analysis originally appeared in the Inside Politics newsletter, out Fridays. Sign up here to get it first to your inbox.
Charlotte’s big transit ambitions took a step forward last week.
The City Council voted to spend $91 million buying freight railroad tracks from Norfolk Southern. That’s a critical step toward building the Red Line commuter train to Lake Norman — a plan almost three decades in the making.
Charlotte City Council also passed a resolution in support of raising the funds to pay for its multibillion-dollar transportation plan. At some point this fall, Charlotte will ask state lawmakers for permission to place a one-cent sales tax increase on the ballot for November 2025.
But the town of Matthews’ leaders are still livid over being told the Silver Line light rail wouldn’t be built to their town. The city said it would build bus rapid transit instead, although there are questions about whether a “gold standard” BRT system is even possible, both logistically and financially.
Here’s what the Charlotte City Council should do next:
Push city staff for a detailed look at a shorter Silver Line
Charlotte told Matthews the Silver Line would be cut because it’s a massive, 14-mile project that would cost roughly $6 billion. That’s roughly what the other four train lines might cost combined.
City Council members need to ask: What about a shorter six-mile train from uptown to, say, Idlewild Road?
That wouldn’t reach Matthews, of course. But the town could get a consolation prize in knowing the train might get there in the next round of transit expansion.
The shorter Silver Line would then be evaluated with the other proposed trains, which include building light rail to the airport; extending light rail to Ballantyne; and extending the Gold Line streetcar.
Because of the relatively high transit ridership in east Charlotte, a truncated Silver Line still might carry the most riders.
It might make the most sense to build.
Seek a different split
The old transit plan called for as much as 80-90% of all new sales tax money to be spent on rail transit. Republican lawmakers such as Tim Moore said that was too much for trains, so the city leaders, Mecklenburg town managers and business leaders came up with a new formula: 40% for roads, 40% for rail transit, 20% for buses.
The smaller pot of money for trains is why the city told Matthews the Silver Line is dead.
One problem with allocating 20% for buses — roughly $65 million a year — is that there probably isn’t enough money to expand the bus system and build that “gold standard” bus rapid transit line.
What about 45% roads, 45% rail transit, 10% for buses?
Yes, it’s more money for trains. But it’s also more money for roads, which is a priority of Moore and Senate leader Phil Berger.
An extra 5% for trains isn’t a game-changer. But when combined with federal grants, it’s probably enough money to build one mile or two of light rail.
That may not sound like much, but it’s money that could push the Silver Line a bit closer to Matthews.
Get an explanation of another tax swap
The city’s draft bill for its transportation plan not only calls for a new one-cent sales tax — it also calls for two other tax changes.
The first is to send a 5% “U-Drive It” tax on car rentals to a proposed new transit authority. The second is to end the city’s “maintenance of effort” annual payment it makes to the Charlotte Area Transit System. That payment is required by law to ensure the city still supports the Charlotte Area Transit System (which is a municipal department) financially, instead of relying solely on money from the existing half-cent sales tax.
This is a bit complicated. Stick with me.
The car rental tax was passed nearly 20 years ago. By law, it’s dedicated to transit, but the city’s intent was to use that money to pay for the debt on arts and cultural facilities uptown, like the Mint Museum, Bechtler Museum of Modern Art and the Harvey B. Gantt Center for African-American Arts+Culture.
The city sends the car rental tax to the general fund, which it then uses to pay for the maintenance of effort for CATS. That general fund money is then freed up to pay for the debt on the arts and cultural facilities.
It appears the draft transit legislation will allow Charlotte to come out ahead financially based on the swap.
The U-Drive It tax is projected to generate nearly $18 million this year. The city’s “maintenance of effort payment” to CATS is $26.2 million.
The city could direct its $8 million savings from ending the “maintenance of effort payment,” which it wouldn’t be required to make anymore, back to the new transit authority.
That’s not a lot of money. But it could build a half-mile of light rail.
Ask about ridership
City staff has had extensive public meetings with City Council members this year about the plan.
I don’t recall — and couldn’t find an instance of — staff ever saying “we project these transit projects will carry X number of riders.” I don’t recall council members asking, either.
Occasionally, interim CATS Chief Executive Officer Brent Cagle talks about “mobility” being the most important of the transit plan, but he doesn’t say how many people might ride the billions of dollars of new trains and new bus lines.
Ridership on CATS buses and trains is ticking up, with a 7% increase from the spring of 2024 compared with the prior year, according to data from the Federal Transit Administration.
But the long-term picture is still grim: Ridership is only at 63% of pre-pandemic levels. And it’s only a little more than half of what it was a decade ago.
The bus system is the biggest laggard. Ridership is down nearly two-thirds since a decade ago.
City Council member: 'I am the district'
Marjorie Molina represents City Council District 5 in east Charlotte.
The transit debate has put her in a difficult position.
She is an ally of Mayor Vi Lyles and generally supports the recommendations of city staff.
But the city told Matthews it won’t be able to build the multibillion-dollar Silver Line, which runs right through east Charlotte and would have likely brought hundreds of millions of dollars in economic development. Just picture the booming neighborhoods around the Blue Line in South End and north of uptown.
At this week’s council meeting, Molina tried to defuse the controversy over losing the train.
She talked about how many of the district’s residents are bus riders, who will benefit from expanded bus service. She talked about the investments in sidewalks and other infrastructure that would happen under the current plan.
She noted that more than 60% of the district is Black or Latino and that many are “non-car owning, transit-dependent humans.”
Molina, who is Black and a Spanish speaker, then appeared to send a message to critics, suggesting that she — as the first woman of color elected to the seat — has special knowledge of District 5 that some residents might not possess.
It came across as ... perhaps a bit self-important.
Molina said that she was going to “toot her own horn” and added: “I am the district.”
But that sort of thinking — putting a small group of officials’ preferences over broad consensus on a plan — is what got City Council into its bind with Matthews and the Silver Line in the first place.
