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By Alec MacDonald
Faced with a massive budget shortfall through June 2010, state legislators on February 19 pushed through a set of 33 bills in an attempt to close the $41 billion deficit. As a whole, the package hinged on spending cuts ($15 billion), taxes ($12.5 billion), borrowing ($5 billion), and federal stimulus funding ($8.5 billion) to keep California out of the red.
Lawmakers burned the midnight oil to devise this solution, but sleep wasn’t the only thing lost in the process. Countless programs and services took a hit; among the casualties was State Transit Assistance (STA), which helps train, bus, and ferry agencies pay both capital and operating costs. These agencies were originally due $306 million for this fiscal year, but now will receive just $153 million. For Bay Area transit, this means missing out on a collective $55 million through June. Things only get worse after that, with STA slated for complete elimination in the next fiscal year.
Yet even with all this belt-tightening, the state continues to face an uphill financial battle. The full realization of the Legislature’s budget package relies upon voter approval in a special May 19 election; $6 billion still hangs in the balance, and will require the passage of propositions 1C, 1D, and 1E. What’s worse, less than a month after the budget deal went through, the Legislative Analyst’s Office reported that the state will likely come up $8 billion short on the revenue side.
Fare Increases Ahead
Shortfalls abound in tough economic times, and California transit agencies have been squeezed by more than just the STA reduction. As a result, there’s been much discussion about fare hikes for Bay Area systems.
Caltrain has cast the first stone; since the first of January, its passengers began paying an additional 25 cents on top of base fare. SamTrans followed suit starting in February, as did the Central Contra Costa Transit Authority in March. In July, the cost of riding AC Transit will go up, and both BART and Muni have been considering increases as well, while also mulling over the possibility of offering less frequent service.
Regional Transportation Plan Postponed
Another effect of the downturn was to delay the Metropolitan Transportation Commission (MTC) in adopting its Regional Transportation Plan, the blueprint for investing $226 billion projected to be available for Bay Area transportation over the next 25 years. Citing the STA cuts as reason for adjusting the plan prior to finalization, MTC also identified the need to accommodate new information coming out of the Santa Clara Valley Transportation Authority, which recently revised its own financial forecasts.
The revised plan will be available for public review starting March 25, and copies may be obtained by contacting MTC at library@mtc.ca.gov or (510) 817-5836. MTC will accept comments on the plan through April 8; the agency’s Planning Committee will then assess it on April 10 before passing it on to the full Commission on April 22.
And on the Topic of Plans...
The Bay Area Air Quality Management District is preparing its 2009 Bay Area Clean Air Plan. The plan will offer a comprehensive strategy to attain air quality standards and protect public health by reducing air pollution from both stationary sources (such as factories and refineries) and mobile sources (such as cars, trucks, and construction equipment).
The plan will update the Bay Area 2005 Ozone Strategy and review progress in improving air quality in recent years. The plan will comply with the requirements of the California Clean Air Act to implement “all feasible measures” to reduce ozone. In addition to reducing ozone, the plan will also consider the impacts of control measures on particulate matter, air toxics, and greenhouse gases, and provide an integrated plan to address multiple pollutants.
The District will hold public workshops to discuss potential control measures in late April. Additional workshops will be scheduled as the District progresses toward adopting the plan in fall 2009.
Visit www.baaqmd.gov for more information.