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On February 17, Assemblywoman Catharine Baker introduced a bill to ensure that the Bay Area Rapid Transit District can’t divert capital improvement funds for operating costs.
BART, who last November asked voters to support Measure RR which required a 2/3 vote which was approved by 70.1% is slated to issue $3.5 billion in general obligation bonds for system improvements will have an influx of money that could potentially be used for operating costs.
Baker hopes to prevent that.
AB 1509, if approved, would prohibit BART from redirecting any existing funds dedicated for system improvements to cover operating expenses following the approval of Measure RR. The bill would also require BART in any fiscal year that it makes an expenditure of Measure RR revenues to expend from other sources of revenue an amount not less than the annual average of its expenditures on acquisition, construction, or completion of rapid transit facilities during the 2013–14, 2014–15, and 2015–16 fiscal years.
By imposing new duties on a local governmental entity, the bill would create a state-mandated local program. The bill would authorize the Controller to perform audits to ensure compliance with certain of these provisions and if BART has not complied with those provisions, the Controller would be required to withhold an amount, equal to the difference between actual and required expenditures, from distributions provided to BART under the transactions and use tax provisions described above.
“During the Measure RR campaign, BART representatives promised funds from Measure RR would not, and could not be used to backfill BART’s high operating costs. This bill holds BART to that commitment that the promised funds would only be spent on capital improvements. It’s good for improving BART and good for government accountability,” said Baker.
BART rejected language that would have ensured the Measure’s funds could not be used to backfill operating costs during the drafting of measure RR, and BART officials can redirect the funds previously allocated for capital improvements before Measure RR passed to cover operating costs, something BART promised Bay Area voters it would not do. BART effectively can use Measure RR funds to redirect capital improvements to cover operating costs. As much as $1.2 billion of Measure RR funds–a full one-third of the bond fund–can be used to backfill operating costs. At a time when California’s transportation infrastructure is crumbling, funds intended for transportation improvements should go toward capital improvements and not administrative or operating costs.
Here is the text of the AB 1509:
LEGISLATIVE COUNSEL’S DIGEST
AB 1509, as introduced, Baker. San Francisco Bay Area Rapid Transit District.
(1) Existing law establishes the San Francisco Bay Area Rapid Transit District (BART), which is authorized to acquire, construct, own, operate, control, or use rights-of-way, rail lines, bus lines, stations, platforms, switches, yards, terminals, parking lots, and any and all other facilities necessary or convenient for rapid transit service. Existing law imposes a permanent 1/2 of 1% transactions and use tax in the Counties of Alameda, Contra Costa, and San Francisco, with the net revenues from the tax allocated to transit purposes. Existing law requires 75% of the net revenues to be allocated to BART.
Existing local law, ballot Measure RR, adopted by the voters of the Counties of San Francisco, Alameda, and Contra Costa on November 8, 2016, pursuant to a 2/3 vote, enacted a regional bond measure authorizing BART to issue $3.5 billion in general obligation bonds for the acquisition or improvement of real property to replace or upgrade severely worn tracks, tunnels damaged by water intrusion, outdated train control systems, and other deteriorating infrastructure to keep BART safe, prevent accidents, breakdowns, or delays, relieve overcrowding, reduce traffic congestion and pollution, improve earthquake safety, and increase access for seniors and persons with disabilities.
This bill would prohibit BART from redirecting any existing funds dedicated for system improvements to cover operating expenses following the approval of Measure RR. The bill would also require BART in any fiscal year that it makes an expenditure of Measure RR revenues to expend from other sources of revenue an amount not less than the annual average of its expenditures on acquisition, construction, or completion of rapid transit facilities during the 2013–14, 2014–15, and 2015–16 fiscal years. By imposing new duties on a local governmental entity, the bill would create a state-mandated local program.
The bill would authorize the Controller to perform audits to ensure compliance with certain of these provisions and if BART has not complied with those provisions, the Controller would be required to withhold an amount, equal to the difference between actual and required expenditures, from distributions provided to BART under the transactions and use tax provisions described above.
(2) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
The people of the State of California do enact as follows:
SECTION 1.
Section 29158.1 is added to the Public Utilities Code, to read:
29158.1.
(a) The district shall maintain its existing commitment of funds for the acquisition, construction, or completion of rapid transit facilities. Following approval of Measure RR at the November 8, 2016, election, the district shall not redirect any existing funds dedicated for system improvements to cover operating expenses.
(b) In any fiscal year that the district makes an expenditure of Measure RR revenues, the district shall expend from other sources of revenue an amount not less than the annual average of its expenditures on acquisition, construction, or completion of rapid transit facilities during the 2013–14, 2014–15, and 2015–16 fiscal years.
(c) The Controller may perform audits to ensure compliance with subdivision (b) when deemed necessary. If the district has not complied with subdivision (b), the Controller shall withhold an amount, equal to the difference between actual and required expenditures, from distributions provided pursuant to subdivision (a) of Section 29142.2.
SEC. 2.
If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
