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- From: "eegenebradley" <http://profiles.yahoo.com/eegenebradley>
- Date: Sun, 20 Jan 2013 20:17:33 -0000
http://zh.scribd.com/doc/121367912/Bay-Area-Transit-Agencies-Ordered-to-Cut-Expenses Bay Area Transit Agencies Ordered To Cut Expenses by Eric Young San Francisco Business Times The Bay Area's biggest transit agencies are preparing to cut expenses in future years - or face the penalty of having another agency do it for them. The region's "Big 7" - including Muni, BART, Caltrain, SamTrans, Santa Clara Valley Transportation Authority, Golden Gate Transit and AC Transit - must cut at least 5 percent from expenses by 2018 or the Metropolitan Transportation Commission will withhold some of the cash it doles out to local transit operators. The MTC, a regional planning and funding agency, allocates about $300 million each year to local transit agencies' operating budgets. Separately it doles out roughly $300 million annually to local transit agencies for capital projects. The MTC did not say how much money it will withhold from transit agencies that don't comply. It laid out a time line for agencies supposed to move toward the financing goal. By the end of March 2013, the Bay Area's big transit agencies are supposed to have approved a plan to reduce their cost per service hour, cost per passenger and cost per passenger mile by five percent. Then the agency needs to meet that goal by fiscal year 2018. The cost-cutting culminates a two year MTC study to reverse the financial decline of public transit systems that was exacerbated by the Great Recession. The Bay Area's nearly two dozen transit systems collectively expect to have operating deficits grow to a record $8 billion and capital deficits grow to $17 billion by 2. Some transit advocates are encouraged by early signs from transit agencies. "Some of the transit agences really are starting to respond to the (transit funding) goals," said Stuart Cohen, director of TransForm, an Oakland-based transportation policy group. Running to catch up The Bay Area's biggest transit agencies saw expenses far outstrip revenue increases between 1997 and 2008. Operating costs: 83% Hours of operation: 15% Passenger trips: 7% Source: Metropolitan Transportation Commission http://www.bizjournals.com/~eyoung / (415)288-4969
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