Saturday, June 05, 2004
VTA -- A Spinning Top
MercuryNews.com | 06/04/2004 | VTA considering transit tax plan:
VTA wants to propose yet another sales tax increase for consideration by voters in 2006. This is to help offset an anual operating deficit of $79 million which continues despite $65 million in cuts claimed by Pete Cipola.
In the meantime, the steep discounts in monthly fares riders have enjoyed throughout VTA's 31-year history are ending abruptly. The Board voted 9-2 on Thursday to increase fares beginning in January, 2005:
Really? Businesses don't retain top-heavy administration staff positions at the expense of the front-line workers that deliver what the business sells. But VTA does. They have yet to make any significant cuts in administration, but have laid off drivers twice in two years. VTA has embarked on very high-cost construction projects in the last three years, including two light rail extensions, a completely rebuilt North Yard division, and has continued purchasing new vehicles -- bus and light rail -- despite the fact that none of these things were necessary.
Where were the $65 million in supposed cuts made, Mr. Cipola? Give us an accurate and clear accounting. Do you include the sale of the existing light rail fleet in your calculations? If so, you are flat out lying to the public. Yes, you sold them, but then turned right around and leased them back, nullifying the effect of the sale. All that accomplished was to raise borrowed cash, raise the debt level of VTA, and obligate the agency to repay millions of dollars over the term of the lease.
You don't run a business by spending hundreds of millions of dollars that you don't have while reducing service and raising prices, and then beg for more donations while lying about how you have cut costs. You're not running a business; you're running a fraudulent charity!
VTA wants to propose yet another sales tax increase for consideration by voters in 2006. This is to help offset an anual operating deficit of $79 million which continues despite $65 million in cuts claimed by Pete Cipola.
In the meantime, the steep discounts in monthly fares riders have enjoyed throughout VTA's 31-year history are ending abruptly. The Board voted 9-2 on Thursday to increase fares beginning in January, 2005:
"I absolutely oppose what they did," said Kevin Kittila, 39, of San Jose, a disabled bus rider whose monthly pass will go from $17.50 to $26. "I'm not responsible for the VTA's problems, and it's not fair for them to make me responsible."
But, countered supervisor and VTA Chairman Don Gage: "This board is not trying to hurt people. We're trying to run this agency as a business."
Really? Businesses don't retain top-heavy administration staff positions at the expense of the front-line workers that deliver what the business sells. But VTA does. They have yet to make any significant cuts in administration, but have laid off drivers twice in two years. VTA has embarked on very high-cost construction projects in the last three years, including two light rail extensions, a completely rebuilt North Yard division, and has continued purchasing new vehicles -- bus and light rail -- despite the fact that none of these things were necessary.
Where were the $65 million in supposed cuts made, Mr. Cipola? Give us an accurate and clear accounting. Do you include the sale of the existing light rail fleet in your calculations? If so, you are flat out lying to the public. Yes, you sold them, but then turned right around and leased them back, nullifying the effect of the sale. All that accomplished was to raise borrowed cash, raise the debt level of VTA, and obligate the agency to repay millions of dollars over the term of the lease.
You don't run a business by spending hundreds of millions of dollars that you don't have while reducing service and raising prices, and then beg for more donations while lying about how you have cut costs. You're not running a business; you're running a fraudulent charity!
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