How Could Transit Agencies Cope With a Sudden Loss of Federal Funds?

Governor Schwarzenegger’s 2009-2010 budget eliminated the State Transit Assistance (STA) program, the only ongoing source of state funding for the day-to-day operations of public transit. At the time, the STA accounted for as much as 70 percent of the total budget for some of the state’s transit providers, so its elimination quickly precipitated a combination of service cuts and fare hikes across the state. No agency was spared: L.A. Metro was forced to cut as much as 160,000 hours of bus service, despite the fact that voters had just approved Measure R to expand transit. Sacramento Regional Transit District cut service by 10%. According to Stranded at the Station, a 2009 Transportation for America report, many agencies were forced to eliminate lifeline services for the most vulnerable riders.

Some agencies found ways to lessen these blows. The San Francisco Municipal Transit Agency, second largest in the state, faced a $129 million dollar budget shortfall upon STA’s elimination. However, state law enabled so-called “Congestion Management Agencies” (typically the transit agency in a given municipality) to put a $10 vehicle registration fee before voters to fund transportation projects. San Francisco County approved the fee in 2010 -- today it generates around $55 million a year for transit operations. Additionally, the agency negotiated with labor unions for concessions, located “lifeline” funding grants and ultimately laid off a small percentage of its workforce.

On a smaller scale, The San Joaquin Regional Transit District, which operates buses in Stockton also faced a crippling deficit. In response, the agency developed a scoring system to preserve its most productive routes when imposing service cuts, and found ways to increase system-wide efficiency. It also cut personnel to balance its reduced budget. Additionally, it aggressively sought discretionary grants to cover the cost of capital projects, allowing it to shift other capital funds to cover operations. Some of this came in the form of grants from the FTA, others from the state. Thanks to its multi-faceted response, SJRTD survived relatively unscathed and currently has the 20th highest ridership in the state.