California State Budget Crunch, Worsening Economy and Rising Fuel Prices Threaten North County Public Transportation

Major service cuts affecting many passengers are anticipated

OCEANSIDE, Calif., April 17 /PRNewswire/ -- North County Transit District (NCTD) is working to solve many issues involving its fiscal year 2009 budget which must be approved by June in order to take effect on July 1, 2008. The month's long effort to craft a new operating budget and plan a 5-year capital budget must also be presented to the San Diego Association of Governments (SANDAG) Transportation Committee subsequent to NCTD Board of Directors approval. In accordance with state funding sources, the final NCTD operating budget must be balanced and contain no deficit spending.

Due to several converging factors, the budget picture for NCTD as well as the state's transit industry is getting worse by the day. State economic conditions and projected revenues dedicated to transit funding are dwindling due to declining sales tax revenues. Another source of concern regarding revenues is how much the state government in Sacramento will take from transportation accounts this year to solve their widening budget gap. In past years the state has balanced their budgets by tapping funds originally designated for improving transportation infrastructure and operations. Due to reoccurring budget diversions by the state, NCTD and other transportation agencies have been thrown into annual tail spins when Sacramento finally passes a budget. This creates an environment of uncertainly for NCTD's 12 million annual passengers, its modes of transit including buses, commuter rail, ADA mandated service and its new light rail system.

Since 2001, nearly $3 billion has been taken from the public transit account and transferred to the state's general fund. This funding loss translates to tens of millions in lost revenue for NCTD operating and capital accounts. Last year the state acted to permanently divert 50% of the state's "spillover" account to non-transit purposes. The "spillover" account was designed to capture excess gasoline taxes collected when gas prices are abnormally high and funnel them to transit agencies to be used to provide better service to the public and cover their higher costs of fuel -- the exact situation that exists today. Due to rising fuel prices over the past five years, eleven percent of NCTD's operating budget is now dedicated to fuel, yet this year half of the "spillover" will be shifted to the state general fund to be used for non-transit purposes. In one year the price of a gallon of fuel for the transit district has risen from $2 to $3.44 a gallon before fuel taxes. Each ten cent increase in fuel costs NCTD $280,000 a year in additional funds.

Public transit can and should be part of the solution for greenhouse gas reduction in California. According to the American Public Transportation Association (APTA), an individual switching to public transit can reduce their yearly carbon emissions by 4,800 pounds. Last year in April, Newsweek magazine featured California Governor Arnold Schwarzenegger on its cover as a leading "green" proponent ready to push California to take the lead on global warming issues. Yet, funding sources specifically put in place to support public transit in California have been gutted by the environmental governor and the state legislature.

Due to higher operating costs and less certain revenue sources, NCTD is faced with budget cuts in the form of severe service reductions and must also raise fares which will hurt many passengers. All this comes at a time when consumers are feeling the effects of an economic slowdown and are looking for alternatives to driving their automobiles and doing their part to save the planet.

NCTD Chairman Ed Gallo is concerned about the annual budget and says, "the Governor's revised budget is due May 15 and public transit agencies across the state can only hold their collective breath. They must not divert any more from transit to the general fund." Gallo adds, "At a time when NCTD needs to create more transit options for the public, we are forced into reductions of service, thanks in part to the state's annual diversion of our promised funds."

For complete trip planning information via public transit in San Diego County call toll free, 511, or plan your trip on-line at: transit.511sd.com. Complete COASTER, SPRINTER and BREEZE schedules are available on NCTD's website at http://www.gonctd.com/.

NCTD moves more than 12 million passengers annually by providing public transportation for North San Diego County. Its family of transit services currently includes the BREEZE bus system, the COASTER commuter rail service, FAST curb-to-curb transportation, LIFT paratransit and the SPRINTER light rail. It is NCTD's mission to deliver safe, convenient, reliable and user-friendly public transportation services.

Contact: Sarah Benson
North County Transit District
Phone 760.966.6522
Fax 760.967.2001
Email sbenson@nctd.org

First Call Analyst:
FCMN Contact:

Source: North County Transit District

CONTACT: Sarah Benson of North County Transit District, +1-760-966-6522,
fax, +1-760-967-2001

Web site: http://www.gonctd.com/

2008-04-17 18:45:47 0339275 PRNEWSWIRE