Judge Orders $409 Million Restored To California Transit Account

The settlement comes after a group sued to have $1.2 billion restored to the transit fund after the state shifted funds to balance the budget, paying for transportation-related programs that normally would have been paid from the general fund.

1 minute read

February 4, 2008, 6:00 AM PST

By Irvin Dawid

"Judge Sapunor's decision stemmed from a suit brought by the California Transit Association, a trade organization for agencies that operate buses, light rail and other mass transit programs."

"The Sacramento lawsuit targeted a $1.2 billion shift last year from the state's Public Transportation Account, created by a 1990 initiative and funded by motor fuel sales tax."

"Joshua Shaw, director of the association, said he is "very disappointed" with the ruling but that no decision has been made on whether to appeal."

"The ruling perpetuates an unfortunate trend over the last few years in which governors and legislatures have diverted dedicated public transportation funds to the detriment of citizens who rely on a healthy and robust public transit system," Shaw said.

"Sapunor ruled that the state could not use $409 million in mass transportation funds to reimburse the general fund for past debt service payments on Proposition 108 bonds, which expanded rail transportation. The judge's ruling says the $409 million shift "does not serve any transportation planning or mass transportation purpose."

"But Judge Jack Sapunor sided with the state in its diversion of an additional $779 million for programs such as home-to-school transportation."

Thanks to Rob Wrenn

FULL STORY: Judge orders transit funds' return; ruling could add $409 million to deficit, but lets $779 million shift stand.

Friday, February 1, 2008 in The Sacramento Bee

Government / Politics Transportation California

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