Why is OCTA reducing bus service?
The current budget crisis prompted the State Legislature to drastically reduce transit funding. Declining sales tax revenue also has reduced available funding for transit services. Even with the extensive cost-cutting measures already taken by OCTA, these significant funding reductions mean that the current level of bus service can no longer be sustained.
State Funding Reduced
The recently approved state budget resulted in devastating impacts for Orange County bus riders. For the remainder of this year, the Legislature slashed the State Transit Assistance program, the only ongoing source of state funding for day-to-day transit operations. This represents a loss of more than $17 million through June. Next year these funds will be eliminated completely--a loss of approximately $100 million over the next five years.
Not only is this a significant short-term loss for OCTA, but it demonstrates an utter lack of commitment to public transportation at a time when ridership throughout the state has been on the rise,” said OCTA Chairman Peter Buffa. “Balancing the budget for the next two years presents a daunting challenge for the board of directors."
Sales Tax Revenues Down
A shortfall in the ¼-cent sales tax from the Transportation Development Act will result in a $19 million loss for OCTA during fiscal year 2008-2009. These revenues normally help fund bus operations at the local level. This shortfall is the largest in history, as well as the largest year-over-year decline in sales taxes. Until the economy recovers, this funding source will continue to decline.