As the state Legislature deadlines draw near, regional transit agencies are scrambling over a precarious yet critical state loan to help them maintain operations and avoid service cuts.
Last week, the California Department of Finance said it wouldn’t be able to finalize details of the $750 million loan before the end of the legislative session. The loan was supposed to act as a bridge to help major transit agencies continue operating as usual for at least another year before the 2026 election, when regional and state leaders are hopeful voters will pass a regional, 14-year sales tax measure that would go toward major transit operators.
“Without this funding it will be impossible for Caltrain to adopt a balanced budget without impacting the new and improved service that riders are enjoying in record numbers,” Caltrain spokesperson Dan Lieberman said via email.
But even Senate Bill 63, which authorizes the ballot measure to go before voters, has not officially passed, and several county leaders, including supervisors Ray Mueller and Jackie Speier, have voiced opposition to the measure. Assemblymember Diane Papan, D-San Mateo, has frequently criticized parts of the bill, saying they do not adequately ensure transit operators, especially BART, are held accountable for the funds they receive. Papan voted against the bill on Sept. 8, however, it ultimately passed the Transportation Committee.
Transit advocates pointed to a systemwide outage on BART Friday, Sept. 5, as what public transit could look like if major operators severely cut service.
State Sen. Scott Wiener, D-San Francisco, and Jesse Arreguin, D-Oakland, said in a statement that Bay Area lawmakers, as well as operators and advocates, “worked all summer proposing various terms to implement the loan to Bay Area transit operators, as contemplated in the June budget agreement and that it is “essential that this loan happen.”
The Legislature has until Sept. 12 to pass bills in each house, and Oct. 12 is the deadline for Gov. Gavin Newsom to sign new legislation into law.
(4) comments
Amazing that they say "Without this funding [the loan] it will be impossible for Caltrain to adopt a balanced budget". Borrowing money doesn't help you balance a budget. Where were these people educated? Sad.
That happens when you spent your money on a new CEO, a new, expensive HQs, a very expensive experimental train.
In Caltrains defense, Rico E. Medina, Diane Papan, David Canepa have sabotaged their ridership by giving us that awful Lexus Lanes project along 101, because the YIMBY-companies "lobbied" them to do so.
Folks, don’t fall for the scare tactics. The system-wide outage on BART was reportedly caused by a software update which didn’t update as desired. Note that all this time, even during the COVID era, these transit agencies are operating at 100% capacity with only 50% or less demand. These transit agencies could easily practice fiscal management but they won’t – because it’s all about rewarding union workers. These folks only want the public to serve union workers and not the public to be served by public transit. Vote NO on any tax measures because that money will be used mainly, if not all, towards paying ever-increasing union salaries, pensions, and benefits
[thumbup] More budget increases just help these bloated agencies insulate themselves from reality. It's all the same stuff over and over again every decade.
Welcome to the discussion.
Log In
Keep the discussion civilized. Absolutely NO personal attacks or insults directed toward writers, nor others who make comments.
Keep it clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
Don't threaten. Threats of harming another person will not be tolerated.
Be truthful. Don't knowingly lie about anyone or anything.
Be proactive. Use the 'Report' link on each comment to let us know of abusive posts.
PLEASE TURN OFF YOUR CAPS LOCK.
Anyone violating these rules will be issued a warning. After the warning, comment privileges can be revoked.