The 2008-09 State Budget approved this morning by both houses of the Legislature allocates $406 million for the State Transit Assistance Program – more than the amount included in any of the Governor's three budget proposals released this year, but still significantly less than the amount that transit advocates maintain they are legally due.

Approved by votes of 61-1 in the Assembly and 28-12 in the Senate, the spending plan adds $100 million to the STA account beyond the $306 million level to which the Administration has adhered in its original January proposal, the May Revision and the "August Compromise." Speculation remains that the Governor would slash the $100 million increase via a line-item veto. That remains to be seen at this point, since the Governor declared this afternoon that he will veto the package approved this morning.

At $306 million, the Administration claims it is simply preserving transit funding at the level included in the 2007-08 budget. In truth, the proposal cuts base funding by an additional $188 million compared to 07-08. In addition, the 07-08 allocation reflects the diversion of $1.259 billion from the Public Transportation Account. The proposed raid on PTA funds for 08-09 approaches $1.5 billion.

Transit advocates maintain that a series of voter-approved constitutional provisions – from 1990's Proposition 116 through Proposition 1A of 2006 – established the PTA as a trust fund and require that PTA revenues must be spent on "mass transportation purposes." The money has instead been re-routed into the General Fund to cover shortfalls in other non-transit programs.

A lawsuit filed by the California Transit Association to recover the PTA funds is pending appeal.

Association members can get more information in our latest Funding Update.