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A BART train arrives at the Pleasant Hill BART station in Walnut Creek Feb. 1, 2021.
Gov. Gavin Newsom said Wednesday that $750 million in state loans to Bay Area transit agencies will be finalized before the end of the legislative session on Friday, after a deal reached in June to create the funding looked to be breaking down.
BART, San Francisco Municipal Transportation Agency, Alameda-Contra Costa Transit and Caltrain were all banking on the money after a budget agreement in June indicated the money would be made available in time to hold off impending cuts.
Ridership declines that started during the COVID-19 pandemic devastated transportation agencies’ budgets, and state lawmakers led by state Sens. Scott Wiener, D-San Francisco, and Jesse Arreguin, D-Oakland, worked to get the loan approved to act as a bridge until more permanent funding could be potentially secured from a regional ballot measure planned for November 2026 that would make funding available starting in 2027 if voters approve it.
Despite the budget agreement this summer, the state Department of Finance said last week that it would not be finalizing the loan by the end of the legislative session ending Friday.
Newsom said Wednesday that a deal had been reached and the loans would be made available in time for the agencies to hold off on plans to reduce service.
“Transit is a lifeline to millions of Californians — and after billions in state investment, we’re continuing to back Bay Area agencies with ongoing support tailored to their needs,” Newsom said in a statement. “We’ll keep partnering with them now and into next year — aligning flexible financing tools to their timelines — so we can deliver a sustainable, rider-first transit system together.”
Transportation agencies are reacting to the depletion of emergency funds that were made available during the pandemic and recovery.
AC Transit plugged a $41.5 million budget gap this fiscal year by using reserves, but said it was facing a roughly $72 million shortfall next year and a four-year shortfall of $238 million.
Caltrain is facing annual projected budget deficits of $75 million from the fiscal years starting in 2027-34.
BART has projected shortfalls of $375 million a year starting in 2027 without the increased funding that could be brought in by the regional sales tax measure.
SFMTA is facing annual deficits of more than $300 million starting in fiscal year 2026-27, according to the agency.
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Dirk van Ulden said:
Dirk van Ulden said:
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