Calif. bus systems may lose more than $60M in federal funds

Omnitrans and Riverside Transit Agency may lose approximately $30 million each in funds from the Federal Transit Administration because of union concerns over a new state pension reform law. As a result, the Department of Labor put a hold on the grant funding.

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August 8, 2013

Calif. bus systems may lose more than $60M in federal funds — Courtesy Riverside Transit Agency

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RIVERSIDE, Calif. — The Press-Enterprise reported that two Southern California transit systems — Omnitrans and Riverside Transit Agency — may lose approximately $30 million each in funds from the Federal Transit Administration.

In April, the Amalgamated Transit Union objected to the grant funding for the California transit agencies. It was concerned that California’s new pension reform law, which took effect this year, could take away bargaining rights provided for under federal transportation law, according to an Omnitrans memo. As a result, the Department of Labor put a hold on the grant funding. Omnitrans asked the labor secretary to lift the hold be lifted and restore funding.

The funding cuts also could potentially affect 14 other transit agencies in California including Los Angeles County Metropolitan Transportation Authority. For the full story, click here.

Topics:federal funding Riverside Transit Agency Management Bus

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