Bus

OCTA: New Calif. budget will impact services

Posted on February 19, 2009

Following a three-month impasse, which culminated in an all-night compromise session and a vote at dawn Thursday, the California Legislature passed a budget package that addresses the state's massive deficit with billions of dollars in new taxes and program cuts, including to transit.

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, according to the Orange County (Calif.) Transportation Authority (OCTA), which adds that this action will result in a loss of more than $21 million for the agency 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, all while the agency is facing a more than $40 million shortfall in this year’s $263 million budget.

For their part, OCTA has been bracing for this hit during the months of ongoing state budget negotiations by adding a fare increase of approximately 25 percent in January, making minor cuts to bus services, and implementing a hiring freeze and cutting capital expenses. 

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.

View comments or post a comment on this story. (0 Comments)

More News

BusCon '16 features more than 80 buses, debuts maintenance forum

This year's event definitely had something for everyone, including the most buses on one North American show floor, a closer look at issues set to impact transit maintenance professionals, an up-to-date look at electric buses and a the BusCon Connect hosted buyers program. 

Seattle taps CH2M to deliver BRT expansion program

This BRT program, which is part of the voter-approved Levy to Move Seattle, will provide high-quality transit throughout some of the densest areas of Seattle.

Hometown Trolley acquires Supreme Corp.'s American Trolley product line

The purchase furthers Hometown Trolley's overall strategic business model to become the leading trackless trolley bus manufacturer in the North American transit industry.

Volvo Buses unveils pedestrian and cyclist detection system

The system will be introduced on Volvo’s European city bus fleet in 2017.

Stertil-Koni introduces high-performance, low-capacity hydraulic vehicle lift

The company’s ST 1064 hydraulic mobile column lift has a capacity of 14,000 lbs. per column, or 56,000 lbs. for a set of four.

See More News

Post a Comment

Post Comment

Comments (0)

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment

TruckingInfo.com

THE COMMERCIAL TRUCK INDUSTRY’S MOST IN-DEPTH INFORMATION SOURCE

Work Truck Magazine

The number 1 resource for vocational truck fleets

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

LCT Magazine

Global Resource For Limousine and Bus Transportation

Please sign in or register to .    Close