Senator Arreguín Announces Proposal to Save California's Public Transit Systems
Sacramento, CA - Today, Senator Jesse Arreguín (D-Berkeley) and Assemblymember Mark González (D-Los Angeles) announced a proposal to provide $2 billion in State funds over the next two years to address operating shortfalls and deliver on capital projects for transit agencies around the state. Arreguín and González have submitted a letter to Senate and Assembly leadership for this request, with the support of 3 Senators and 11 Assemblymembers. Senator Arreguín is working closely with Senator Scott Wiener (D-San Francisco), Chair of the Senate Budget Committee, on this budget request.
Supporting Senator Arreguin and Assemblymember Gonzalez in this effort are a broad coalition of over 60 organizations from across the state, including labor organizations, business groups, transit agencies, and transit, housing, environmental, and social justice advocacy organizations.
“As one of the millions of Californians who regularly uses public transit, I am deeply concerned about the impending fiscal cliff our transit operators face,” said Senator Jesse Arreguín. This funding is critical to keep our buses and trains running throughout California, which provides a lifeline to many people, keeps California’s economy going, and advances our goals to reduce greenhouse gas emissions.”
“Public transit is essential to California’s economic strength, environmental goals, and the daily lives of working families,” said Assemblymember Mark González. “With transit agencies facing severe financial challenges, this $2 billion in critical funding will not only prevent devastating service cuts but also catalyze investments in workforce development and infrastructure while we develop long-term revenue solutions. As we prepare to welcome the world for the 2028 Olympics and other major events, we must reaffirm our commitment to safe, reliable, and accessible transit for all Californians.”
This request builds on previous efforts to secure transit operating funding, including the protection of $4 Billion in previously committed transit capital funding and an additional $1.1 Billion in new flexible emergency operations funding secured in the Budget Act of 2023. Senator Wiener, who led the 2023 effort, has been working closely with Senator Arreguín to ensure that this year’s request will allow transit agencies the ability to provide uninterrupted service without reducing routes or frequency.
“Ensuring California has robust public transportation is a top priority for me, which is why we’ve worked so hard the past few years to shore up our transit systems’ finances,” said Senator Scott Wiener. “Safe, clean, and reliable public transportation is vital for California’s economy, environment, and quality of life. I applaud Senator Arreguín’s leadership in this important issue, and I look forward to working together on this budget request and to create long-term sustainable funding solutions.”
Since the COVID-19 pandemic, transit agencies have struggled to raise revenue to meet their operating costs, with some facing fiscal insolvency by 2028. The closure of transit agencies would have devastating effects to California, stranding low-income residents, seniors, and essential workers who rely on this essential mode of transportation. A lack of transit would lead to more congestion on roads and worse air quality, all while increasing economic inequality and reversing post-pandemic recovery statewide.
California has historically provided less funding to its largest transit agencies compared to the rest of the country. In 2019, 22% of LA Metro’s operating expenses were covered by the State, 18% for the San Francisco Municipal Transit Agency (SFMTA/Muni), and just 5% for BART. Comparatively, New York provides 30% for the New York City Transit, Massachusetts provides 44% for Boston’s Massachusetts Bay Transportation Authority (MBTA), and Pennsylvania 50% for Philadelphia’s Southeastern Pennsylvania Transportation Authority (SEPTA.) This means that California’s transit agencies are more reliant on transit fares, with ridership still below pre-pandemic levels and the state’s big downtowns are still recovering. This risks creating a spiraling feedback loop of less fares resulting in less service, which in turn creates even less fares.
In the Bay Area, regional transit agencies are facing major budget deficits. BART, the region’s inter-city train system, is facing a $400 million deficit by 2026. Senators Wiener and Arreguin are working to authorize new local revenues in the Bay Area, but this local funding won’t arrive in time to stave off the worst cuts. Without state help, Bay Area cuts could result in trains arriving every 60 minutes instead of the current 20 minutes, with no weekend service. Muni, which provides transit services in San Francisco, faces a $322 million deficit by 2026. This could result in a 50% cut to service and elimination of discount programs relied on by students, seniors, and people with disabilities.
“Maintaining public transit is a long-term investment in our state and regional economies and in our goal of reducing carbon emissions and slowing climate change. Without additional funds, transit services will deteriorate, workers and employers throughout the state will suffer, and problems like congestion, commute times, and the lack of affordable housing will grow worse,” said Theresa Rutherford, SEIU Local 1021 President and Executive Board member of SEIU California.
“Access to reliable, safe public transit is a critical element of our economy and quality of life. This state funding is critical to keep our systems running while we develop long term solutions to improve continued function and improve efficiency,” said Jim Wunderman, President and CEO of the Bay Area Council.
Already, transit agencies are facing reduced services and cutting routes, while deferring maintenance and capital projects that are necessary for the long-term viability of transit operations. This comes at a time when more workers are returning to offices and California prepares to host major events in the coming years that will bring millions of tourists to the state, including the 2026 FIFA World Cup and 2028 LA Olympic and Paralympic Games.
"Communities statewide rely on public transit service to keep their local economies moving and to expand access to opportunities,” said California Transit Association Executive Director Michael Pimentel. “As transit agencies face headwinds, it's critical that the state enhance its support for this essential service. We thank leaders from across the state who continue to champion needed state budgetary support to keep systems running and help our most vulnerable populations move around our state.”
“Public transit is a critical component to communities statewide, including those here in the greater San Diego area,” said San Diego Metropolitan Transit System (MTS) CEO, Sharon Cooney. “As MTS faces continued fiscal impacts from the COVID-19 pandemic, it’s imperative that we work on statewide solutions to address this transit funding shortfall and keep our regions moving. We commend the Legislature for taking action on this pressing issue.”
“Streets For All is proud to see this vital budget ask pushed by the legislature and especially from members that represent the diversity of our state both Norcal and Socal. It is urgent for too many California, particularly our most vulnerable, for transit to be cut by the wayside,” said Marc T. Vukcevich, Director of State Policy, Streets For All. Our trains and our buses running reliably and on routes that people can count on is a social compact that serves as the backbone of our working class.”
"Today, car ownership is the second largest expense for Californians, second only to housing. If Bay Area transit collapses, families will surely feel it in their wallets and California will not be able to tackle the affordability crisis in any real way," said Laura Tolkoff, Transportation Policy Director for SPUR.
The State’s budget will be approved by June 15.