BART PREFERS TO CREATE MORE DEBT RATHER THAN AVOID UPCOMING FARE HIKES!

Transit cash comes with catch
By: Mike Aldax
Examiner Staff Writer
06/17/09 10:03 PM PDT

Bay Area transit agencies may soon be able to use federal stimulus dollars to reduce upcoming fare hikes and service reductions — but Muni, BART and Caltrain say they would not take advantage if given the opportunity.

Under current guidelines, transit stimulus funding provided by the American Recovery and Reinvestment Act can only be used for capital projects such as train and bus rehabilitation or the construction of new tracks and stations. Muni is receiving $67.2 million for such projects, BART $65 million, Caltrain $10.4 million and SamTrans $7.8 million.

The funds cannot be used to pad operating budgets, which account for farebox revenue, worker salaries and other expenses used to run day-to-day operations of transit systems.
The funds are earmarked for “shovel-ready” projects that can quickly create jobs and stimulate the nation’s economy.

However, new legislation under consideration would allow transit agencies nationwide to use stimulus dollars for operational costs. That’s because nearly half the systems in the U.S. have been forced to raise fares or cut service due to dwindling revenue, according to the American Public Transportation Association. The fear is those measures will encourage commuters to drive to work instead of riding transit, further depleting revenue.

But Caltrain, Muni and BART said they would rather use the money to “stimulate” jobs, as was the original intent, and to upgrade or repair fleets. The transit agencies all have major shortfalls in infrastructure needs, and accomplishing tasks such as replacing aging buses, installing new fareboxes or enhancing preventative maintenance would indirectly improve transit service, they say.

“While flexibility is welcome, it cannot come at the expense of investment in capital programs, which are significantly underfunded,” Muni spokeswoman Kristen Holland said.

“Transit agencies, including Caltrain, are lobbying to include operations assistance in the federal transportation reauthorization bill,” Caltrain spokeswoman Christine Dunn said. “This would provide a permanent source of funds for operations, rather than one-time money.”