BART funding puzzle challenges transit officials
OAKLAND -- Debora Allen is one of nine people on the Bay Area Rapid Transit board of directors.
She represents District 1 which includes the four BART stations from Lafayette to Concord in central Contra Costa County. Before being elected to the board in 2016, Debora worked for decades as an accountant and financial officer.
"I decided this would be a place where I could bring my financial background to possibly help the public and do some good," Director Allen said.
But when Debora got into office she says she quickly realized BART's finances were in trouble.
"If you look at the numbers for the operating cost and spending since the pandemic, it has consistently, for the most part, risen every year," Allen said.
From 2018 to 2022, BART's operating expenses increased from $992 million to just over $1 billion while, at the same time, operating revenues plummeted from $546 million to just $166 million.
To cover that gap, BART received emergency funding from the federal government but that funding runs out in 2025.
And with ridership still less than half of what it was pre-pandemic, BART needs to come up with a new source of funding fast or risk significant cuts to services.
One of the people working to secure that funding is state senator Scott Wiener (D-SF).
"We need stop-gap emergency funds to make sure that these systems don't fall apart," Sen. Wiener said.
There are a few different ways BART can secure funding.
The state could raise bridge tolls or taxes on things like gas and retail sales.
It could also increase its BART investment from the state's general fund.
Sen. Wiener told KPIX that's the option he thinks is best.
"That would be the cleanest way of doing it. It makes sense for the state to step in and do it," Sen. Wiener said.
BART says it will need around $300 million per year starting in 2025 just to stay afloat. This comes at a time when the state is dealing with its own budget deficit.
That's why Sen. Wiener is also the author of a bill that would increase bridge tolls to fund BART.
"We also have ideas about how to make sure that commuters who are commuting every day on the bridges are not harmed," Sen. Wiener said.
BART is also working to get a voter initiative on the 2026 ballot that would raise taxes to fund the system. The hope is that one or a combination of these different ideas will work to get BART back in the black.
Polling by an organization called Joint Venture Silicon Valley suggests securing any of those funding options may not be easy.
Russell Hancock is the president and CEO of Joint Venture.
"We asked people their opinions about public transit and specifically we asked about our region's struggling rail systems, BART and CalTrain, and we learned some interesting things," Hancock said.
According to Joint Venture's poll, 57 percent of respondents said commuter rail needs to keep going even if it costs taxpayers more money.
But, when asked where that money should come from, 57 percent disapprove all the available options including raising fares, bridge tolls and taxes.
Angel Sembrano has been riding BART to work every day for the past 25 years.
He told me he's a part of the other 43 percent, those willing to pay more if it means services aren't cut.
"I think it's a good idea because, otherwise, how can I get to my work without the BART," Sembrano said.
BART director Allen said the issue will be getting those who don't ride BART every day onboard. She understands many of them are frustrated with BART's handling of its finances.
She is too.
That's why she is not only looking into ways to secure more funding for BART but she's also looking into ways to cut costs on everything from future projects to labor.
"This board has refused to ask for concessions out of the labor contracts on things, not necessarily on just pay decreases. We could be talking about overtime rules which are very generous to BART employees," Allen said.
Union leaders say that, even if they wanted to, renegotiating the labor contract wouldn't solve the funding problem. They believe it would only make it harder for them to retain employees.
"It has to be a state-level solution for all transit agencies. It ain't going to be by cutting raises or laying people off that you're going to get there," said John Arantes, president of the BART Chapter of SEIU 1021.
Allen says she knows BART can't just cut costs to get out of its deficit.
Her hope is to find a balance of both cutting costs and securing additional funding.
"Perhaps if $80 million in cuts can be found in an annual budget, now we're only looking for $120 million per year of revenue and that might be more palatable to taxpayers, to bridge toll payers or to even state and local governments," Director Allen said.
Allen believes the more people see BART trying to rein in its spending, the more willing they may be to support future funding of the system and help BART avoid its looming fiscal cliff.
