☆ How to stop the absurd BART extension to DTSJ
Despite escalating costs, declining ridership expectations, a state audit, and a round of dubious excuse-making, the Santa Clara Valley Transportation Authority (VTA) is plunging ahead with its planned six-mile BART extension through downtown San Jose to Santa Clara. While the project has substantial political momentum, it is not yet a fait accompli, and would most likely have to be stopped at the federal level, explains the Cato Institute's Marc Joffe in this Opp Now exclusive.
Earlier this month, the Federal Transit Administration posted an updated profile of the VTA project on its website. The update shows a total project cost of $9.3 billion with 49% expected to come from a federal grant. The remainder must come from state and local sources.
And VTA is well on its way to assembling the non-federal share of the project’s cost. Santa Clara County voters approved sales taxes to support transit in 2000, 2008, and 2016. A portion of the revenue from these sales tax increases, which total 1.125%, goes to the BART extension.
In addition, $375 million of toll revenue was allocated to the project by virtue of 2018’s Regional Measure 3, which is phasing in a $3 toll increase across several Bay Area bridges.
The BART extension has also received state support, obtaining funds from both the State of California’s Traffic Congestion Relief Program and its Transit and Intercity Rail Capital Program.
This latter program is among those that Governor Newsom has proposed to cut in his 2023–24 budget proposal to help close an impending budget deficit, potentially placing a speed bump on VTA’s way to full local funding. But because the project is expected to run through 2033, VTA has time to lobby the state to replace any allocations lost in the current budgeting cycle.
If a local group wanted to stop the project, probably its best option would be to place a measure on the 2024 ballot repealing some or all of the previously ratified sales taxes. The state constitution protects the right of voters to initiate such repeal campaigns, but the cost of qualifying a measure for the ballot is steep.
In Santa Clara County, a citizen-initiated ballot measure would require 54,190 valid signatures (which is one-tenth of the total votes cast for governor in the last election). Getting that number of signatures (plus a buffer for invalid signatures) would require many hours of volunteer time or hundreds of thousands of dollars for paid signature gatherers who may charge anywhere from $2 to $20 per signature.
One might think that applying pressure to VTA directors might be an option, but this approach does not seem promising. Directors are appointed rather than elected and are thus not directly accountable to voters. Instead, they are more likely to be influenced by the transit advocates and construction industry interests who want to see this project go forward irrespective of its costs and benefits.
Probably the biggest risk facing the Phase II Silicon Valley extension is a failure to win final federal approval. The Biden Administration clearly wants this project, as witnessed by the fact that the president’s budget includes $500 million specifically for it. Of course, presidential budgets are normally “dead on arrival,” and the Republican-led House is unlikely to approve funding for a project Speaker Kevin McCarthy derisively called “Nancy Pelosi’s subway”.
If the Federal Transit Administration (FTA) receives no special funding for the BART extension, it will have to weigh the project against others competing for federal funds available from the bipartisan infrastructure law and previous legislation.
For this reason, project advocates were dismayed that the FTA reduced projected daily ridership from the 52,000 calculated by VTA to just 32,900, which is still too high given the dismal ridership numbers we have seen at Berryessa and Milpitas. Still, the FTA’s more conservative estimate impacts the “Project Justification Rating,” the agency assigned to the project, because that rating considers both the number of transit trips and costs per passenger. As of its latest update, FTA has given the BART extension a “Medium” Project Justification Rating, which is the third highest of five possible ratings.
That said, FTA assigns the project an Overall Project Rating of “Medium-High”, which is the second highest point on its scale, suggesting that a positive funding decision remains likely. Congress might be able to sway the Administration through hearings: if members generated enough doubt about the ridership calculations or other project assumptions, perhaps the federal funding would go elsewhere.
Planners have been working toward the Phase II extension for a long time, and their efforts appear to be close to fruition. While it is understandable that they would want to see this project through given the time and effort they have invested in it, moving forward is not the right decision for the local, state, and federal taxpayers who are funding a transit extension that no longer makes sense.
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