California Could Cut Transit Spending Even as Systems Struggle

Despite warning calls from transit agencies across the state that they need state funding to survive the coming budget shortfalls, California Governor Gavin Newsom is pushing ahead with proposed transit spending cuts in next year’s budget, write Skylar Woodhouse and Eliyahu Kamisher in Bloomberg CityLab. “Facing a projected $32 billion budget deficit, Newsom is looking for ways to cut spending, including proposing a $2.2 billion reduction on transit infrastructure and no new funding for local public-transit providers.”

But transit agencies say continued low ridership is leading to a fiscal cliff. “In San Francisco, ridership on the Bay Area rapid transit system is about 40% below pre-pandemic levels, while the Los Angeles metro system is at about 70% of 2019 levels.” According to Emily Loper, vice president of public policy at the Bay Area Council, “If we are making it so difficult for people to commute — people of all income levels — we really risk losing our workforce to other regions and states.” 

The article contrasts Newsom’s plan with New York, where Gov. Hochul approved a new payroll tax that could bring in an estimated $1.1 billion to fund the Metropolitan Transportation Authority (MTA).