BayRail Alliance - BART extensions we don't support

Memo to the VTA Board regarding the proposed 1/8 tax increase

Fri, 08 Aug 2008 01:30:36 -0600

Memo to the VTA Board

August 7, 2008

After eight years of planning, VTA still does not have the financing lined up to pay for the construction and operation of the Silicon Valley Rapid Transit project. Each proposal for new money, when granted, ends up surprising the VTA board when it learns the new funds are inadequate. At that point the usual course has been for the VTA to go out again for more money. As you will see from our attached analysis, the proposal for a new sales tax (one– eighth of a cent) will not raise enough money, and VTA will have to go out again for yet another tax.

Voters and the VTA Board need to know what BART will really cost, both for capital and operating.

In 2000, VTA asked voters to approve Measure A, a tax that was to raise $6 billion. The Expenditure List assigned $2 billion to the BART project.

In 2001, after Measure A was approved, VTA began negotiations with BART over a “buy–in” fee. BART’s figure was about double what VTA had estimated. It was agreed to begin at $48 million a year, and increase at the rate of Santa Clara County sales tax collections, in perpetuity. The base year is 2002, six years ago. The current buy–in figure is higher now than the initial $48 million.

In 2002, VTA acknowledged that it had a long–term, 25–year operating deficit of $6 billion. VTA continued to cut bus service while continuing to move the BART project forward.

Also in 2002, VTA agreed to have the BART buy–in figure taken directly from its TDA allocation, unless VTA could come up with a sound alternative source of funds. The TDA is used to run VTA’s buses, and VTA has not yet come up with a reliable alternative to providing the TDA funds to BART.

In 2003, the Chief Financial Officer of the VTA released a report to the “Ad Hoc Expenditure Committee” that showed for the first 22 years of the 30 years of Measure A, VTA’s expenditures would exceeded its revenues. The principal driver of this situation was the cost of building BART. The CFO wrote to the VTA Board about financing alternatives: “The end result of this was that the BART project would be completed in FY 2026 and we were still
unable to maintain a positive cash flow.”

In 2006, VTA worked the county to ask voters for one quarter of a cent to solve its financing problems. That was probably not enough money, but the voters said No.

Now in 2008, with costs rising, VTA is prepared to ask voters for one eighth of a cent, to fix its problems and move BART along. But if one quarter of a cent was inadequate, how will a one eighth of a cent tax solve the problem?

We estimate that, WITH a new one eighth of a cent tax, when the BART line opens in 2017, that VTA will be underwater by at least $15 million a year with the buy-in. And the red ink continues through the life of Measure A. That is because the tax is inadequate to the task.

Before more money is assigned to the BART project, shouldn't everyone agree on what it will cost and on what funds are available to pay for it?

Attachments:
VTA memo: BART Operating Subsidy
VTA cost estimate by BayRail Alliance
Relevant pages from the Comprehensive Agreement between BART and VTA

Regional Rail Plan Workshops

Thu, 09 Aug 2007 21:31:04 -0600

Date and time:
August 15 - 27, 2007

Expiration Date:
August 27, 2007 - 7:00pm

Source:
MTC

Body:
Track the Bay Area’s rail future at a public meeting on the Draft Regional Rail Plan

After 18 months of analysis and stakeholder involvement, a draft regional rail plan for expanding the region’s network of rail lines has been completed.

The Draft Regional Rail Plan was made to identify potential rail passenger and rail freight improvements for the near-, intermediate-, and long-term and the economics of different scenarios.

Come to one of a series public meetings (listed below) where you can:

* See and comment on what’s proposed to move people and freight throughout the region in the coming 50 years

* Learn how the regional rail network would be enhanced with proposed California high-speed rail investments (and view alternatives for bringing high-speed rail into the Bay Area)

Sierra Club statement on Commonwealth Club "Debate"

Mon, 16 Apr 2007 16:27:09 -0600

April 21, 2005

If BART supporters are willing to engage in an open and fair debate, they should reinstate Greg Perry to the panel. And if they are right, they should not be afraid to debate him on this issue.

What modern regional rail looks like

Thu, 29 Mar 2007 18:22:07 -0600

What state-of-the-art looks like

Thu, 29 Mar 2007 18:22:07 -0600

Many people who don't know much about trains think BART is state-of-the-art. It's not.

Former BART director Sherman Lewis, who lives in Hayward, agrees. See Mr. Lewis' opinion piece that was published in the Mountain View Voice.

FAQ About BART Extensions We Don't Support

Thu, 08 Feb 2007 11:08:01 -0700

BayRail Alliance, BART Extensions We Don't Support in the News

Thu, 08 Feb 2007 08:28:23 -0700

1996 - SFO/Millbrae extension lawsuit

Wed, 31 Jan 2007 19:35:14 -0700

1994-1995

Wed, 31 Jan 2007 19:32:53 -0700

BART to San Jose/Santa Clara County

Mon, 29 Jan 2007 22:41:56 -0700

Currently, BART ends in Fremont. There are plans to extend it to San Jose, but these plans amount more to wishful thinking than actuality, because there isn't nearly enough money available to fund construction.

Caltrain budget stalled; It's BART vs. Caltrain

Thu, 25 Jan 2007 18:23:31 -0700

Group says BART to SJ is siphoning funds from transit

Thu, 25 Jan 2007 17:08:51 -0700

BART shackles Caltrain In lieu of BART, County Supervisor Don Gage is pushing for an electrified Caltrain

Thu, 25 Jan 2007 16:24:14 -0700

BART to SJ: pet project an albatross for taxpayers

Thu, 25 Jan 2007 16:14:20 -0700

Gage worried about transportation projects Supervisor says BART extension could doom Caltrain improvements

Thu, 25 Jan 2007 15:53:43 -0700