State Budget
November: Further Threats to Public Transportation Funding Loom Large
A souring economy means that California is facing an even larger deficit that state decision-makers thought when they passed the 2008-09 budget earlier this fall. In early November, the governor released his "November Revise" budget proposal, which called for additional cuts, including redirecting $230 million out of the remaining $306 million in State Transit Assistance funds. And, even worse, his proposal calls for permanently eliminating the STA, which is the sole source of state funding for transit operations, in future budget years.
Take action to prevent these cuts!
Read the coalition letter that TransForm submitted to decision-makers.
September: State Budget Decimates Public Transportation Funding... Again!
After a record impasse, California's 2008-09 State Budget was passed 85 days late -- on September 23, 2008. Unfortunately, the $17 billion deficit was addressed in large part through cuts to key programs, including redirecting $1.7 billion in dedicated public transportation funds to the General Fund.
The problem is, as gas prices continue to rise, even more Californians are turning to mass transit. Transit ridership is rising across the state, and some systems are experiencing overcrowding. Yet because of these and previous funding raids we're simultaneously seeing fare hikes and service cuts. Download a fact sheet that outlines the context of the budget cuts.
This year's raid on public transit funding comes after a nearly $1.3 billion cut in last year's state budget. Even worse, next year's budget is anticipated to be even worse, meaning more public transportation funds will be at risk.
Unless we build an even stronger movement for budget solutions, public transportation funds, and funding for other critical programs, will continue to suffer in a broken budget process.
A large part of the budget problem is structural. State expenses are on the rise--due to basic inflation and a growing population--and state revenues have decreased, in part caused by a permanent cut in the vehicle license fee.
TransForm is working on a host of solutions to raise new revenue, including:
- A climate impact fee
- Indexing the gas tax to inflation
- Creating deeper legal protections for dedicated public transit funds
What's at Stake
Suspension an redirection of public transportation dollars has become a bad habit in California. This trend contributes to our deteriorating public transportation systems that cannot meet the needs of the communities that depend on them. We can't have reliable public transit without reliable funding for public transit operators. Furthermore, 41% of the state's greenhouse gas emissions come from transportation, mostly from private cars and trucks, so if Californians are serious about curbing climate change, funding public transit operations is an imperative.
Since 2000, over $4.6 billion in dedicated public transportation funds have been redirected through the state budget process. A large portion of these funds come from the "Spillover" fund, a special account that generates additional funding for public transportation in times when gas prices rise quickly, when transit agencies face higher costs and more demand for their service.
Since FY2000-01, suspension of Spillover dollars and other shifts, loans, and transfers of transit funding have denied more than $4.6 billion in revenue to the Public Transportation Account (PTA). The 2008-09 State Budget alone cost the PTA account $1.667 billion.
These revenues rightfully belong to public transportation, and are much needed for transit operations given the number of service cuts and fare increases across the state. This funding is needed to protect commuters, working families, communities of color, and youth and seniors from further reductions in service.
Contact Carli Paine to join our 2009-2010 campaign to protect these critical funds.
