sr-071409-1cCity Council Meeting: July 14, 2009
Agenda Item: ~ ® G
To: Mayor and City Council
From: Stephanie Negriff, Director of Transit Services
Subject: Resolution Supporting California Transit Association's .Proposed
Research, Polling and Focus Group Activities for a Statewide Transit
Funding Protection Initiative
Recommended Action
Staff recommends that the City Council adopt the attached resolution supporting the
California Transit Association's (CTA) effort to research the placement of a transit
funding protection initiative before the voters of the State of California.
Executive Summary.
The California Transit Association is seeking support from its member agencies to
explore the feasibility of a transit funding protection initiative. This effort is being
considered as a result of State transit fund diversions that have impacted both operating
and capital subsidies. If the outcome of this research shows public support, the CTA
would pursue placing such an initiative on a future State ballot.
Discussion
The Big Blue Bus relies heavily on various funding sources from the State of California
for operations and capital investments. Since 1971, the State Transit Assistance Fund
(STA) program has. been the only ongoing source of State funding for the day-to-day
operations of public transit.
Recent budget actions by the State Legislature resulted in the diversion of STA into the
State's General Fund through FY2012-13. The impact of this decision is a $23.9 million
loss in Big Blue Bus operating funds over the next four years. The elimination of this
funding source will impact the City's ability to improve or expand transit operations.
1
In 2006, the voters of California approved the sale of $3.6 billion in State General Fund
Obligation Bonds to support Proposition 1B, the Public Transportation Modernization,
Improvement, and Service Enhancement Account (PTMISEA). The State's Legislative
Analyst Office has recommended that the state refrain from selling the voter-authorized
bonds based on their conclusion that transit investments do not contribute to the
economy of the state. The Big Blue Bus plans to use its share of these funds to
purchase replacement buses.
The CTA has proposed conducting polling and focus group activities to assess the
possibility of placing a statewide initiative on the ballot protecting transit funding such as
STA and PTIMSEA. If the activities show potential public support, the CTA's Executive
Committee will move forward with the action.
Financial Impacts & Budget Actions
There are no budget impacts associated with the passage of this resolution.
Prepared by:
David Feinberg, Deputy Director of Transit Services
Approved: Forwarded to Council:
~~
Ste Y nie Negriff
Dir c or of Transit Services
Attachment: Resolution
2
Reference Resolution No.
10416 (CCS).