In
the Governor’s 2007-2008 Budget, Governor Schwarzenegger announced that
he proposes to take away funding for public transit, both in this
year’s budget and in future years, in large part by ignoring
legislative requirements that all “Spillover” revenue go to public
transit.
Spillover
revenues are generated when gas prices rise faster than inflation. The
spillover funding mechanism was created in the Transportation
Development Act of 1971, and was explicitly designed to provide needed
funds for the state’s Public Transportation Account, which is the only
statewide fund that can be used to pay for public transit operations.
When gas prices are high, public transit depends on increased funding.
The last six years of rapidly increasing gas prices have resulted in
increased utilization of California’s public transit systems. Higher
gas prices have also resulted in increased costs of fuel for public
transit services.
In his
2007-2008 Budget, the Governor has proposed to spend $600 million from
the passage of the $19.9 billion transportation infrastructure bond
(Prop 1B) on public transit capitol costs this year. At the same time
he’s diverting Spillover money away from the Public Transportation
Account to pay off debt from the transportation infrastructure bond,
none of which can be used for operations. $340 million of the $617
million in the Spillover Fund will be used to pay off debt from the
bond, which mostly funds construction of roads and highways, not public
transit. The Governor is also proposing to divert $627 million from the
Public Transportation Account to pay for home-to-school transportation
services, and $144 million to regional center transportation programs.
This proposal is cutting significant public transit operation funding
to give to services that are normally paid for with other funds. In
total, more than $1.1 billion dollars are cut from the Public
Transportation Account in the Governor’s proposed budget.
“Voters
and legislators alike supported the passage of the infrastructure bonds
in November to supplement, not replace, funds for public transit
operations. With California’s growing population and increasing
congestion we must fully fund public transit to leave a legacy of
transportation options for future generations,” said Emily Rusch,
CALPIRG Advocate.
“The
current proposal will have devastating impacts on working families,
youth, elderly, and low income communities. We are looking to the
legislature to take the lead on fully funding the Spillover to public
transit and protecting it in the future” said Carli Paine, TALC Policy
Director.
“We
worked diligently to help pass the Governor’s infrastructure bonds, and
now this is a slap in the face, because even if we build new services,
we have to pay to run them. Taking away transit funding at a time of
high gas prices and widespread concern with global warming is the wrong
message at the wrong time,” said Bart Reed, The Transit Coalition in
Southern California.
Transit
operators have a hard time finding funding for constantly-increasing
and always imperative operating costs. The Spillover, one huge source
of operating funds, has consistently been diverted by recent budgets;
between 2000 and 2006, shifts, loans and transfers of transit funding
has denied more than $1.6 billion in revenue to the Public
Transportation Account.
Josh
Shaw, Executive Director of California Transit Association, concluded,
“These funds are vital for public transit operating programs, increased
bus and rail service and could be used to purchase clean fuel bus
fleets. At a time when the price of gas is so high and rising everyday,
we need more public transportation choices, not less.”
Additonal Contacts
Carli Paine, TALC
510-740-3150 x315
Bart Reed, The Transit Coalition
818-362-7997
Josh Shaw, California Transit Assoc.
916-446-4656
