AC Transit May Face Job, Service Cuts Without Aid Package
Dateline:
02/12/2009Source:
The Daily Californian The commission responsible for allocating federal stimulus funding to transit organizations may not provide enough funding to alleviate AC Transit's deep financial shortfalls.
The $789 billion stimulus package, which was agreed upon by leaders in the U.S. House of Representatives and the U.S. Senate yesterday, contains provisions to combat the economic downturn through additional funding to local transit.
The amount of funding, distributed through the Federal Transit Administration, has not yet been disclosed.
The Metropolitan Transportation Commission controls the allocation of these funds to Bay Area transit organizations. The commission is proposing to allocate about $145 million of stimulus funds to long-term capital projects, according to Lindsay Imai, transportation and housing program associate for Urban Habitat.
These long-term projects include a BART extension to Oakland International Airport and infrastructure surrounding the Transbay Terminal.
But this would mean less funding for AC Transit, since its $50 million budget deficit requires immediate use of the funding, said Jim Gleich, deputy general manager of AC Transit.
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According to Imai, public transit agencies such as AC Transit are in dire need of any economic aid.
"If we don't get sufficient money from the stimulus, all bets are off and we're looking at major service cuts," Imai said. "(AC Transit) may have to lay off 200 people."
Also in danger are the prices of youth and senior bus passes, Imai said.
At the bare minimum, Gleich said, there would be a 25-cent increase in cash fares, depending on the final amount of stimulus funds allocated to AC Transit.
Traditionally, money allocated for these projects flows through a formula the commission uses, which would distribute about 15 percent to AC Transit, said Gleich.
Yet the ultimate power to allocate funds remains with the commission.
Gleich said the commission's proposal to allocate $145 million dollars outside of the formula is unusual.
"I would say it's unprecedented. They've never done it before, but they can do it," said Gleich.
But John Goodwin, public information officer for the commission, stated that the commission follows a "flux set aside" formula in dealing with Federal Transit Administration allocations, including prospective stimulus funding.
"With regard to the flexible funds (the commission) has discretion over, we use this formula every year," Goodwin said.
Gleich said the real problem at the moment is that the state is taking transportation funds away from public transit to fix its budget crisis. This creates a need for funding that AC Transit hopes the stimulus package could help satisfy.
Claudine Tong, a member of transportation equity group Genesis, said funding BART's extension to the airport benefits a specific demographic.
"(The diversion to BART is) a convenience for people who can afford a plane ticket, versus taking away bus fares for people who can't afford them now," Tong said.
She said fare increases would have profound effects on public transit riders.
"We're talking about money that will immediately hurt our community - people won't be able to get to work, get to the doctor, kids won't be able to get to school," Tong said.
The commission is set to vote on stimulus allocations on Feb. 25.
Contact Mihir Zaveri at mzaveri@dailycal.org.
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