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Public Transportation Budget Cuts Illegal and Short-Sighted

Richard--_headshot_08.jpgBy Richard A. Marcantonio and Carli Paine

At a time when California needs transit service more than ever, more than $1 billion in funding voters earmarked for public transportation was raided this year to balance the budget. Worse, this is not a one-time fix. The same maneuver has taken place every year for the last six years.

That’s a slap in the face to California voters, who have repeatedly called for expanding state funding for transportation. They’ve also voted again and again to protect this funding from redirection.

Yet Governor Schwarzenegger is shamefully looking again to divert state funding intended for transit assistance after already having raided over 80% of these critical funds in the budget adopted in September. More egregious still is his call in his November 2008 budget revise to permanently eliminate state transit assistance funding.

These repeated raids on dedicated public transportation funding are bad public policy. They undermine climate change efforts and increase the threat of global warming. They have severe economic consequences threatening to leave Californians who are struggling to get to jobs and other opportunities stranded. They fall hardest on the most disadvantaged communities and residents.

They’re also illegal.

Prop 116 mandates “that funding for public transit should be increased from existing sources including fuel taxes and sales tax on fuel” and that these funds shall be spent on mass transportation, not other transit projects serving special populations. According to Shaw vs. Chiang, a recent lawsuit challenging state budget cuts to public transit, diverting these funds violates the voters’ expressed intent when they passed Prop. 116 in 1990.

Billions of dollars of transit funding are at stake. Since 2000 more than $4.6 billion in dedicated public transportation funds have been diverted away from transit through the state budget process.

carli-paine.jpg

The legal challenge to these practices comes at a critical moment for public transportation. On average, subways, buses, commuter rail and light-rail systems saw a 6.5 percent jump in ridership nationally from July to September of this year according to an American Public Transportation Association report, with California following suit. That’s the largest quarterly increase in 25 years.

Economic pressures are likely to prompt further ridership jumps. While transportation is the second highest cost for Californians as a whole (after housing), people who live near public transportation are able to reduce this cost from 25% of their household budget to only 9%. And, public transportation is a powerful engine for economic growth. Every $10 million invested in public transportation generates $32 million in increased business sales.

Studies also show that every $1 dollar in reduced bus service yields $10 dollars in economic harm, hurting California’s most vulnerable residents the most. When state the state siphons away public transportation funding, transit agencies have very few choices: they can raise fares or cut service. Very low-income families in Alameda County already dedicate more than half of their household income to transportation, so fare hikes and service cuts have severe implications. And, with most California middle and high-school students relying on public transportation to get to school, underfunding of public transit equals undermining access to economic opportunities.

Public transportation also promotes California’s important environmental goals. With transportation contributing nearly 40% of the state’s global warming pollution, the Attorney General has called for “improvements in public transportation” as an important part of California’s strategy to combat to global warming. Further, he advises giving “funding preference to investment in public transit over investment in infrastructure for private automobile traffic.”

In November, California voters reaffirmed their commitment to public transportation by approving several new ballot measures to expand and improve public transit services in their communities. This builds on their intent to support and protect state funding for public transit operations when they approved Prop. 116.

Governor Schwarzenegger and the Legislature should heed the will of voters and stop the illegal and short-sighted raids on public transportation funding, now and in the future.

Richard A. Marcantonio is Managing Attorney at Public Advocates Inc. Carli Paine is Transportation Program Director at TransForm

Posted on December 23, 2008

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