What the Governor's Budget Means for Transit, Walking and Biking

Cap and trade revenues offer opportunity for transit

For 2012, the mechanism that appears to hold the greatest potential for bringing significant new dollars to transit is the nascent Cap and Trade program developed by the Air Resources Board under AB 32 to reduce greenhouse gas (GHG) emissions.  Initial estimates are that the program could bring in up to $1 billion the first year and then ultimately many billions of dollars each year over time as the program expands.

Governor Brown’s 2012/13 budget proposes allocating cap-and-trade revenues to: clean and efficient energy; natural resource protection; low-carbon transportation, including transit; and sustainable infrastructure, including transportation and housing.  TransForm applauds the governor’s proposal.  We are working with stakeholders and key legislators to advance a specific policy framework that will prioritize transit, housing, and other key infrastructure investments.

Governor Brown’s budget proposal also shows State Transit Assistance (STA) funding for local transit agencies, derived from the sales tax levied on diesel fuel, as being projected to increase from about $400 million for fiscal year 2011/12 to a little more than $420 million for 2012/13.  This should provide a small amount of additional operations and maintenance support for agencies that are cash-starved after years of cutbacks.  This small uptick won’t make a dent in restoring the billions in transit cuts over the last decade and will not help transit agencies meet increased demand.

Governor proposes increases in bond funding for transit

With regard to Prop 1A and 1B bond funds approved by the voters and available for transit, the governor is proposing increased allocations for the 2012/13 cycle.  While these monies may be used to enhance local transit connectivity as well as for certain safety improvements, new capital service extensions, and new rolling stock, they are not available for most operations and maintenance expenses.

Further complicating matters, the actual release of the funds depends on a series of additional actions by the administration.  For example, last year the governor frustrated transit agencies across the state by not allocating available bond funding for a range of projects eligible under Prop 1A.  Many of these projects were put on hold or abandoned, as transit agencies were dependent on the bond funds to cover the full costs.  It remains to be seen whether additional bond funds will actually be allocated this year.

Biking and pedestrian funds fall short

The governor proposes a significant increase in funding for bicycle and pedestrian facilities, from approximately $7.2 million dollars in 2011/12 to almost $12 million in 2012/13.  While we appreciate that the percentage increase is significant, the actual dollar amounts being proposed are still woefully inadequate to the need.  And the governor has not justified why his budget proposal leaves unspent an additional $5 million in reserves that is currently sitting in the Bicycle Transportation Account.

As more Californians are walking and biking, there is a huge demand across the state for improved sidewalks and bike lanes.  There is also a huge safety need for these improvements: pedestrians and bicyclists are injured and killed at higher rates per accident than automobile drivers.  Investments in bike lanes and sidewalks are relatively inexpensive (compared to other types of transportation investments) and deliver an impressive array of positive returns: improved safety, better public health, and higher property values.

TransForm will be working this year to get all available funds allocated to bicycle and pedestrian investments in this budget cycle and also to set up predictable year-over-year increases in allocations, perhaps derived from Cap and Trade revenues, to speed up the transformation of local streets and roads across California to accommodate all users.

High speed rail: train to nowhere or getting back on track?

Governor Brown has strongly affirmed his commitment to high speed rail, via his proposed budget and a series of strongly positive statements.  The Governor is assuming increased control of the High Speed Rail Authority and he appears willing to make modifications to the project and business plan in order to restore public confidence and build back political support.  However, funding for the project remains unclear and in his budget the governor does not propose a specific dollar amount to be allocated to begin construction.

TransForm has long supported high speed rail in California.  However, we have concerns that the current iteration of the plan will not deliver promised benefits — for communities, travelers or the environment — and that it may not be financially viable.  TransForm is engaged in discussions with key stakeholders, the Authority and the governor’s office regarding how to ensure that the project is designed and built in a way that will actually bring the environmental, economic and social benefits that voters were promised.