AGENDAREPORT
TO: HonorableMayor &CityCouncil FROM: Councilmember KaplanAt-Large Council President FortunatoBasDistrict 2
Councilmember FifeDistrict 3
Councilmember KalbDistrict 1
SUBJECT: StateFundingFor PublicTransit DATE: June8, 2023
RECOMMENDATION
CouncilmembersKaplan, FortunatoBas, Fife, andKalbRecommendThat TheCityCouncil Adopt AResolutionUrgingTheGovernorAndStateLegislatureToProvideOperationsFundingToHelpOakland’sTransit SystemsSurviveAsTheyRecoverFromThePandemic
EXECUTIVESUMMARY
TheLegislature’scurrent budget proposal wouldleadtomassiveservicecutstoBayAreatransit agencyservicessuchasBayAreaRapidTransit (BART) andAlameda-ContraCostaTransit District (ACTransit). Amidst negotiationsontheStateBudget, thisresolutionurgestheGovernor andStateLegislaturetoprovidefundingtoavoidtheseservicecutstoOakland’sandtheBayArea’stransitagencies.
REASONFORURGENCY
Co-sponsorsof thislegislationarerequestingthisresolutionbypasscommitteesothat it maybepublishedandsharedwithStateLeadershipprior tothepassageof thebudget.
BACKGROUND/ LEGISLATIVEHISTORY
Basedoncurrent ridership, servicelevels, andcost trends, BayAreatransit operatorsforecast annualbudget shortfallsinthetensof millionsof dollarsinFiscal Year (FY) 2023-2024, growingtoalmost fourhundredmilliondollarsbeginninginFY2024-2025, andgrowingtoover sevenhundredmilliondollarsinthesubsequent years.
ACTransit isfacinga$47millionbudget deficit byFY2024-25, andover fiveyears, ACTransit’scumulativebudget shortfall will total $146million. Similarly, BARTisfacinglargeoperatingdeficitsstartinginFY24-25rangingfrom$140million-$300million. If newfundingisnot secured, BARTand CityCouncilJune20, 2023
HonorableMayor &CityCouncilSubject: StateFundingFor PublicTransitDate: June8, 2023 Page2 ACTransit arefacingdevastatingcutsthat will haveseriousimpactsonthequalityof lifeintheBayArea, includingpotentiallyeliminatingearlymorning, lateevening, andmost weekendservices.
TheCOVID-19pandemichashadaprofoundandunprecedentedimpact onpublictransit ridershipworldwide. Publictransit agenciesfacedimmensechallenges, grapplingwithreducedrevenue, serviceadjustments, andincreasedsafetyprotocols. Evenasrestrictionshaveeasedandvaccinationratesincreased, thelingeringeffectsof thepandemicandchangesincommutingpatternscontinuetoimpactpublictransit ridershiptoday. Thepathtorecoveryremainsuncertainastransit agenciesadapt totheevolvingneedsandexpectationsof passengersinthisnewnormal.
REQUIREDLEGISLATIVEFOLLOW-UP
ThisresolutiondirectsOakland’slobbyist tosharethisresolutionwithStateSenator andBudget ChairNancySkinner, Assemblymember BuffyWicks, Assemblymember MiaBonta, andGovernor GavinNewsom.
ANALYSISANDPOLICYALTERNATIVES
Asit stands, theLegislature’scurrent proposal woulddisadvantageOakland’sandtheBayArea’stransitagenciesasthefundingdistributioniscurrentlybasedonaregion’sformularather thanaregion’stransitridershipor lost transit revenue, whicharemuchbetter proxiesfor howthestateshoulddistributefundingtoavoidservicecutsthat wouldmost severelyimpact transit-dependent riders. Inaddition, theStateprovidesasmaller portionof ACTransit andBART’soperationsbudget thanother statesdofor similarlargetransit systemsintheir state. 1 DespitetheStateitself acknowledgingthat transit ridershipneedstodoubleinorder tomeet theState’sclimatetargets, theLegislature’scurrent proposal alsowouldnot allocateanyadditional fundingfromtheGreenhouseGasReductionFundtoavoidmassivetransit servicecuts. Finally, theLegislature’scurrentproposal wouldnot allowexcessone-timeFederal Highwayfundstobespent ontransit operationstoavoidmassiveservicecuts, despitePresident Bidenurgingstatestodosoinhisrecent budget memo.
FISCALIMPACT
BayAreatransit operatorsforecast annual budget shortfallsinthetensof millionsof dollarsinFiscalYear (FY) 2023-2024, growingtoalmost four hundredmilliondollarsbeginninginFY2024-2025andgrowingtoover sevenhundredmilliondollarsinthesubsequent years. Without additional statefundingtoaddressthesebudget shortfalls, theseoperatorswill beforcedtoimplement drasticservicecuts, whilelayingoff workersand/or increasingfairs. Suchactionsrisksendingtheseoperatorsintoaspiral ofreducedridershipandrevenue, requiringfurther servicecutsanddeeper ridershiplosses. 1 Tolkoff,L.(2023)It’stimeforCaliforniatostepupforpublictransit:Here’showtohelp, SPUR. Availableat:https://www.spur.org/news/2023-05-09/its-time-california-step-public-transit-heres-how-help.
CityCouncilJune20, 2023
HonorableMayor &CityCouncilSubject: StateFundingFor PublicTransitDate: June8, 2023 Page3
PUBLICOUTREACH/ INTEREST
Acoalitionof over 100transit operators, community-basedorganizations, local governments, andnon-profitssent aletter onMay11thtoStateleadershiprequestingtheyprotect publictransit inthebudget. 10membersof Congresssharedasimilar letter withStateleadershiptoprovidenear-termpublictransportationoperationsfundinginthebudget aswell.
COORDINATION
Co-sponsorsof thislegislationworkedinclosepartnershipwithBayAreaRapidTransit Districtleadershipandstaff ondraftingthislegislation. Inaddition, theresolutionhasbeenreviewedandapprovedastoformandlegalitybytheCityAttorney’sOffice.
SUSTAINABLEOPPORTUNITIES
Economic: BayAreatransit operatorsforecast annual budget shortfallsinthetensof millionsof dollarsinFiscal Year (FY) 2023-2024, growingtoalmost four hundredmilliondollarsbeginninginFY2024-2025andgrowingtoover sevenhundredmilliondollarsinthesubsequent years. Without additional statefundingtoaddressthesebudget shortfalls, theseoperatorswill beforcedtoimplement drasticservicecuts, whilelayingoff workersand/or increasingfairs. Suchactionsrisksendingtheseoperatorsintoaspiral of reducedridershipandrevenue, requiringfurther servicecutsanddeeper ridershiplosses.
Environmental: DespitetheStateitself acknowledgingthat transit ridershipneedstodoubleinorder tomeet theState’sclimatetargets, theLegislature’scurrent proposal alsowouldnot allocateanyadditionalfundingfromtheGreenhouseGasReductionFundtoavoidmassivetransit servicecuts. Reducingtrainandbusserviceswill leadtoanincreaseinpassenger vehiclesontheroadwhichwill havedetrimentaleffectsonpollutionandcarbonemissions.
Race&Equity: Accesstohigh-qualitypublictransit isanequityissuethat deeplyimpactsOaklandresidents. Studiesconsistentlyshowthat commuteaccessisakeyindicator of whether or not apersoncanescapepoverty. 2 Efficient, safe, affordable, andaccessibletransportationsystemsnot onlypromoteeconomicproductivityandcreatejobsbut canincreaseaccesstoemployment, education, andotheressential life-shapingopportunitiesthat enablepeopletoimprovetheir livingconditions. Peopleof color,students, seniors, andlow-incomepeoplearealsotheprimaryusersof publictransportation. 67%ofBARTridersarepeopleof color, and44%donot haveavehicle. Therefore, providingfundingtoavoidservicecutstoOakland’sandtheBayArea’stransit agenciesiscrucial tosupportingthesepopulations. 2 TransportationAccess: BoostingUpwardMobility(UrbanInstitute). TransportationAccess| BoostingUpwardMobility(UrbanInstitute). (2021, December 28).
CityCouncilJune20, 2023
HonorableMayor &CityCouncilSubject: StateFundingFor PublicTransitDate: June8, 2023 Page4
ACTIONREQUESTEDOFTHECITYCOUNCIL
CouncilmembersKaplan, FortunatoBas, andFifeRecommendThat TheCityCouncil Adopt AResolutionUrgingTheGovernorAndStateLegislatureToProvideOperationsFundingToHelpOakland’sTransit SystemsSurviveAsTheyRecoverFromThePandemic For questionsregardingthisreport, pleasecontact ChristineMiyashiro, PolicyDirector, [email protected] Respectfullysubmitted,
Councilmember KaplanAt-Large
Council President FortunatoBasDistrict 2
Councilmember FifeDistrict 3
Councilmember KalbDistrict 1
Preparedby:ChristineMiyashiro, PolicyDirectorOfficeof Councilmember At-LargeRebeccaKaplan CityCouncilJune20, 2023