SACRAMENTO — California legislators have reached a deal to provide almost $2 billion in funding for the state’s public transit that was not part of Gov. Gavin Newsom’s proposed budget.
The deal announced by state Sens. Scott Wiener (D-San Francisco) and Jesse Arreguin (D-Berkeley) restores a $1.1 billion transit cut included in Newsom’s budget, and covers a request from San Francisco-area transit systems for a $750 million, interest-free loan to prevent major service cuts over the next two years. Wiener and Arreguin are also sponsoring SB 63, which would authorize a 2026 ballot measure to address long-term funding needs in the Bay Area.
“This budget agreement extends a critical lifeline that will help transit agencies maintain service while making critical improvements to cleanliness and safety,” the two senators said in a statement. “We are grateful that legislative leaders prioritized support for transit. …
“Even with this one-time relief package, systems across the state continue to face large budget shortfalls that threaten devastating service cuts. … We look forward to discussions with the Governor and colleagues on how we can best support public transportation going forward.”
Streetsblog California notes that if the money is included in the final budget passed by the legislature, Newsom could still strike the funding via a line-item veto — but recent budgets have included more transportation and transit than he has proposed and he has not exercised that power.
“and covers a request from San Francisco-area transit systems for a $750 million, interest-free loan to prevent major service cuts over the next two years.”
Otherwise known as “kicking the can down the road”.
If they don’t have the money now, how are they going to pay it back?
“Loan” ??? A loan is something that can be paid back if all goes well.
Best case for this “loan” is that the same amount (or more) will have to be “loaned” each budget period going forward.