Just as spiraling gas prices are sending hordes of new riders to public transit, the latest state budget proposal from Governor Arnold Schwarzenegger would cut nearly $8 million in available funding for Long Beach Transit—the equivalent of more than 100,000 hours of bus service or 4.2 million passenger trips.
The proposal is the most recent in what has become an annual raid of transit funding to balance the state budget. If approved by the State Legislature, the governor’s budget would pluck $1.4 billion from the state’s Public Transportation Account (PTA) and divert it to other uses. This would bring the total amount of transit funds raided during this decade to more than $4 billion.
PTA funds consist of sales taxes collected on fuel that are intended to finance both transit-related capital improvements and daily transit operations. When fuel prices are rising at a rate higher than other goods (such as is certainly the case now), additional or so-called “spillover” revenue flows to the PTA account. This allows transit systems to add extra service to accommodate increased demand caused by higher fuel prices.
However, in recent years, as the state has grappled with budget shortfalls, the Legislature has approved transferring funds from the PTA account to the State General Fund. The governor’s most recent budget proposal would provide for the largest transit raid in state history, and the impact on Long Beach Transit would be substantial:
• Using the traditional PTA formula, Long Beach Transit would receive $10.8 million in funds during the budget year beginning July 1.
• The governor’s originally proposed budget would have cut this amount to $7.4 million.
• The governor’s revised budget proposal would cut the amount to $3.1 million, a loss of $7.7 million (equivalent to 4.2 million passenger trips) to Long Beach, Lakewood, Signal Hill and surrounding communities served by Long Beach Transit.
The cuts would not only mean Long Beach Transit would be unable to expand service to accommodate increased demand, they would greatly increase the likelihood of higher bus fares and even service reductions.
