Thursday, May 26, 2005
Will Work for Food
The Dispatch: "'We’re not going to get any help from the state or federal government,' [County Executive Pete] Kutras said. 'We’re either going to have to dramatically [reduce services], or have a sales tax for local services.'"
VTA's hand will be out again soon, even though after testing the waters to see if they are warm enough to get another sales tax increase all indications are negative. But the county is also considering a sales tax increase, and both can't be approved, because state law caps sales tax at nine percent. Voters are not likely to approve another hike for VTA, which has increased fares annually while reducing service. This comes at a time when VTA also is expanding its light rail lines and Mayor Gonzoles is pushing to build BART to San Jose even though there is no federal or state backing of the plan. Now the competition with the county for sales tax dollars is heating up as they feel the pinch of declining tax revenues.
I have said it before, and I say it again here: VTA has mismanaged its funds to the point where it is millions of dollars in debt and cannot make good on its long-term obligations.
If the county's tax measure passes, as much as 40% of it could be diverted to VTA. But there is not enough public support to get the required two-thirds vote to pass it, so the county is facing big service cuts. The revenues for the last tax increase aren't likely to provide the shot in the arm VTA hopes they will, due to the sluggish economy, and it isn't likely to get better any time soon. The problem VTA now faces, and the union had better prepare its membership for, is that it must drastically increase its funding or face the fact that it cannot continue existence as a centrally managed mass transit agency responsible for both light rail and bus service for the entire county.
VTA seems to see it that way, too. They are starting a free shuttle service in Los Gatos starting in July that will replace the 60 line. It remains to be seen whether Steve Wong and the gang can make good on his public threats to sue VTA over this plan and whether a court would hold VTA to their agreement with ATU to keep it an all-union shop.
It now looks to me like VTA is intent on eliminating its union-based bus service in favor of low-wage contracted workers and repainting itself as a rail service agency like BART. Whether this can succeed is questionable, given the shift in focus for federal transit funding from light rail to alternative fuel bus technology (e.g., hydrogen powered buses). But with San Jose Mayor Ron Gonzales heading the VTA board by being responsible for appointing five of its 12 members and his determination to BARTify San Jose even without outside help, it looks as if there will be no alternative.
VTA would have far fewer problems if it weren't so reliant for local funding on sales tax. SamTrans gets some of their funding from local property taxes, which must be paid regardless of current economic conditions. They have an excellent record of never having to lay off drivers or cut service. VTA puts all of its local funding eggs into one basket with the consequence being wildly fluctuating revenues that are tied to the health of local businesses.
Unless VTA finds another way to fund its operations, it had better revise its mission to exclude bus service and concentrate on the only things it really cares about--light rail and BART. And the union had better wise up and prepare its members for hard times.
VTA's hand will be out again soon, even though after testing the waters to see if they are warm enough to get another sales tax increase all indications are negative. But the county is also considering a sales tax increase, and both can't be approved, because state law caps sales tax at nine percent. Voters are not likely to approve another hike for VTA, which has increased fares annually while reducing service. This comes at a time when VTA also is expanding its light rail lines and Mayor Gonzoles is pushing to build BART to San Jose even though there is no federal or state backing of the plan. Now the competition with the county for sales tax dollars is heating up as they feel the pinch of declining tax revenues.
I have said it before, and I say it again here: VTA has mismanaged its funds to the point where it is millions of dollars in debt and cannot make good on its long-term obligations.
If the county's tax measure passes, as much as 40% of it could be diverted to VTA. But there is not enough public support to get the required two-thirds vote to pass it, so the county is facing big service cuts. The revenues for the last tax increase aren't likely to provide the shot in the arm VTA hopes they will, due to the sluggish economy, and it isn't likely to get better any time soon. The problem VTA now faces, and the union had better prepare its membership for, is that it must drastically increase its funding or face the fact that it cannot continue existence as a centrally managed mass transit agency responsible for both light rail and bus service for the entire county.
VTA seems to see it that way, too. They are starting a free shuttle service in Los Gatos starting in July that will replace the 60 line. It remains to be seen whether Steve Wong and the gang can make good on his public threats to sue VTA over this plan and whether a court would hold VTA to their agreement with ATU to keep it an all-union shop.
It now looks to me like VTA is intent on eliminating its union-based bus service in favor of low-wage contracted workers and repainting itself as a rail service agency like BART. Whether this can succeed is questionable, given the shift in focus for federal transit funding from light rail to alternative fuel bus technology (e.g., hydrogen powered buses). But with San Jose Mayor Ron Gonzales heading the VTA board by being responsible for appointing five of its 12 members and his determination to BARTify San Jose even without outside help, it looks as if there will be no alternative.
VTA would have far fewer problems if it weren't so reliant for local funding on sales tax. SamTrans gets some of their funding from local property taxes, which must be paid regardless of current economic conditions. They have an excellent record of never having to lay off drivers or cut service. VTA puts all of its local funding eggs into one basket with the consequence being wildly fluctuating revenues that are tied to the health of local businesses.
Unless VTA finds another way to fund its operations, it had better revise its mission to exclude bus service and concentrate on the only things it really cares about--light rail and BART. And the union had better wise up and prepare its members for hard times.
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