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Yesterday, Dallas Area Rapid Transit (DART) announced a few capital projects will proceed as planned and a few others will be postponed because of a projected sales tax revenue shortfall. The agency based its decision on a review of project funding strategies beyond a current 37-mile light-rail expansion.

DART will continue to advance the Green Line project from Pleasant Grove to Carrollton and construction of the Lake Highlands station, which are scheduled for completion in December; and the Blue Line extension from Garland to Rowlett and first two sections of the Orange Line from Bachman Station in northwest Dallas to Irving, which are slated for completion in 2012. However, DART has opted to “indefinitely delay” the third section of the Orange Line from Irving to Terminal A at DFW Airport, second downtown Dallas alignment and Blue Line extension from Ledbetter Station to the University of North Texas at Dallas campus, agency officials said in a prepared statement.

“We are very disappointed that it does not appear we will complete all of our projects as planned,” said DART President/Executive Director Gary Thomas. “We will continue working to find ways to advance these projects as best we can based on the current and anticipated economic and financial conditions.”

A proposed 20-year financial plan includes $4.7 billion in capital project funds for rail expansion and other projects. Agency officials are reviewing multiple sources of revenue to fund future projects.

In March, DART projected sales tax receipts for fiscal-year 2010 would fall $13 million to $15 million below an original estimate of $387.8 million. More than 75 percent of the agency’s income is derived from a 1 percent sales tax collected in the 13 cities served by DART. Updated 20-year sales tax projections show the agency would receive about $3 billion less in sales tax income than an amount projected in mid-2009.