State Budget Slashes Public Transportation Money

Orange County bus riders will lose as legislators eliminate funding for operations

ORANGE – Today’s early-morning approval of the state budget will have devastating impacts for Orange County bus riders as the Legislature voted to eliminate a steady stream of transit funding.

The State Transit Assistance program, the only ongoing source of state funding for day-to-day transit operations, was slashed for the remainder of this year and completely eliminated from the 2009-2010 budget. Statewide, this could mean a total of $536 million hit to public transportation.

For the Orange County Transportation Authority (OCTA), the action will result in a loss of more than $21 million through the fiscal year ending June 30.

“Not only is this is a significant short-term loss for OCTA but it demonstrates an utter lack of commitment to public transportation at a time when ridership throughout the state has been on the rise,” said OCTA Chairman Peter Buffa. “Balancing the budget for the next two years presents a daunting challenge for the board of directors.”

Plummeting state sales tax revenue also will result in a $19 million loss for OCTA. The transportation agency is facing a more than $40 million shortfall in this year’s $263 million budget.

OCTA has been bracing for this hit during the months of ongoing state budget negotiations. A fare increase of approximately 25 percent went into effect in January, minor cuts to bus service were implemented, a hiring freeze was put into place and capital expenses were cut.

Moving forward, the board is expected to eliminate raises and bonuses for administrative employees beginning July 1, additional service reductions are anticipated and further cost-cutting measures will be necessary.

OCTA operates 80 bus routes and handled nearly 69 million boardings in 2008.