A deal struck between California mass transit agencies and Gov. Arnold Schwarzenegger saves millions of dollars for public transit but signals potentially higher water and sewer fees for state residents.
Northern California agencies Bay Area Rapid Transit and AC Transit saved approximately $30 million in a last minute deal that will likely shift a financial burden to another part of the state budget.
In an effort to balance the budget, Schwarzenegger had proposed a 40% shift in property taxes paid by transit agencies. However, 11th hour negotiations on Tuesday spread the money to other government districts, most likely water agencies.