At a time when transit providers throughout the state are facing both record-breaking demand for services and crippling reductions in their ability to meet that demand, Governor Schwarzenegger delivered the latest blow today by cutting another $100 million from transit funding in the process of finalizing the 2008-09 state budget.

The spending plan approved Friday by both houses of the Legislature provided $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 $153 million short of the allocation included in the Conference Committee recommendation issued in June. The $306 million final allotment following the Governor's action today is the same amount to which the Administration has adhered through its original January proposal, the May Revision and the "August Compromise," in defiance of widely-acknowledged developments throughout the year that have shown ever-growing numbers of Californians responding to skyrocketing gas prices by turning to public transit for their day-to-day mobility needs.

At $306 million, the Administration claims it is simply preserving transit funding at the level included in the 2007-08 budget. In truth, that amount represents a reduction in base funding by an additional $188 million compared to 07-08. Furthermore, the 07-08 allocation reflected the diversion of $1.259 billion from the Public Transportation Account. The 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. The total diverted from the PTA this decade now surpasses $4 billion.

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

Association members can view our latest Funding Update for details on public transit components in the final 2008-09 state budget.