☆ Opinion: Cost-cutting, not “emergency funds”—$774MM is no small number
An emergency is a one-time, unexpected event—not what our Bay Area transit agencies have experienced, yet they “qualified” for a $774MM funding package to fix budget shortfalls. Let's put it this way: imagine you stop paying your mortgage, spend your income lavishly—but expect the gov’t to foot the bill. An Opp Now exclusive, below, from local political commentator Denise Kalm.
What We’re Paying For
Golden Gate Bridge District is getting $41MM, BART will get $129MM in general funds and $223MM in SB 125 funds, Muni gets $309MM, AC Transit gets $33MM, and Caltrain gets $25MM. The Metropolitan Transportation Commission unlocked $3000 million in regional funding to bail out these agencies. The rest comes from “emergency transit funds” from Senate Bill 125, a bill I had never heard about. Had you?
“SB 125 (Chapter 54, Statutes of 2023) guides the distribution of $4 billion in General Fund through the Transit and Intercity Rail Capital Program on a population-based formula to regional transportation planning agencies, which will have the flexibility to use the money to fund transit operations or capital improvements. The transportation budget trailer bill also establishes the $1.1 billion Zero-Emission Transit Capital Program to be allocated to regional transportation planning agencies on a population-based formula, and another formula based on revenues to fund zero-emission transit equipment and operations. SB 125 includes an accountability program to govern the distribution of these funds, on which there is more detail below.
In addition, SB 125 establishes a Transit Transformation Task Force led by the California State Transportation Agency to develop policy recommendations to grow transit ridership, improve the transit experience and address long-term operational needs.” [Editor’s note: Read the whole thing here.]
All agencies report lower revenue from fares because people haven’t returned in large numbers to public transit. Working from home is a factor, as is the number of working age people who have left the state. But for some, public transit is no longer safe, it costs too much, and it doesn’t provide the services people need. In other words, this could have been predicted based on survey data from customers. Do they do surveys?
And the State Isn’t Done
California state government sees SB 125 as a stop-gap measure to hold down the fort until they can push their next “solution” on us. They first polled us in 2024 on additional taxes to fully fund transit for many years, if not forever; they got results indicating that people wouldn’t support it. The plan is to try again in 2026 with SB 1031, a measure passed in the state senate in May of this year. Scott Wiener and Aisha Wahab created the bill. Both are Democrats.
Specifically, and very concerning, the bill does not specify where the funds will come from. They will allow MTC to choose from a sales tax, regional payroll tax, square footage-based parcel tax, additional regional vehicle registration tax, or a combination of these. When polled in 2023, 78% of Bay Area voters believe that public transit is very important.
SB 125 was amended as follows: “set[ting] a goal of raising $1.5 billion in revenue. Seventy percent of the funds must be returned to benefit the counties that paid the revenue in the first 5 years, after which 90% of funds must be returned. Any new taxes would expire after no more than 30 years, and if a sales tax is proposed it will be no more than half a cent.” But returned to who? Taxpayers? I doubt it.
Watch out for this bill in 2026, which may be masked with a new name and certainly will be light on the details of the impact to us. As it comes to light, I encourage you to discuss this bill with friends and family. Until MTC—and all other union transit shops—take action to reduce their costs, no more money should be given to them.
“Giving money and power to government is like giving whiskey and car keys to teenage boys.”
― P.J. O'Rourke
The Real Solution
Instead of living on the “dole,” as these agencies do—constantly demanding more money, while not providing the service we need—the first solution is massive budget cuts and increased automation. Not more handouts or bailouts. These districts and agencies have failed to adequately manage the funds they have, failed to respond to changes in need and demand, and continue to pay their workers far more than their jobs deserve. BART drivers’ pay is a great example.
Instead of trying to imagine the Bay Area as one big city, sane transportation management involves rail lines only within cities, with cheaper bus service targeted at moving people closer to those lines. A private company would have long ago figured this out.
The demand for money will continue, as it isn’t really solving an emergency, but continuing to provide our money to profligate agencies so they don’t need to budget or plan properly. Taxpayers need to demand real solutions and no more money. Bills will be coming to add more money to their coffers; they should thoughtfully consider them, and their fiscal consequences, before deciding to vote “yes” or “no.”
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