Capital Funding

The total project cost is estimated at approximately $5.9 billion in 2009 dollars based on most current engineering cost estimates for project construction. Funding for this project will come through multiple revenue streams including: The 2000 Measure A, 1/2 cent sales tax and other local sources would contribute 74%, the State of California and its Traffic Congestion Relief Program (TCRP) would contribute 11% and federal grants including the New Starts Program would provide the remaining 15% of the funding.

Read the Federal New Starts Program Fact Sheet

LOCAL SUPPORT:

2000 Measure A

On August 9, 2000, the Santa Clara Valley Transportation Authority (VTA) Board of Directors voted to place a half-cent transit sales tax on the November 7, 2000 General Election ballot allowing Santa Clara County voters the opportunity to vote on transportation improvements in the county. The Measure was approved by 70.3 percent of the voters and collection of the tax began in April 2006.

The Measure as it appeared on the ballot in summarized form:

• Connect BART to Milpitas, San Jose, Santa Clara
• Build rail connection from San Jose International Airport to BART, Caltrain, light rail
• Purchase vehicles for disabled access, senior safety, clean air buses
• Provide light rail throughout Santa Clara County
• Expand, electrify Caltrain; Increase rail, bus service

2008 Measure B: Operation and Maintenance Funding

The 1/8 Cent Measure B sales tax passed receiving 66.78% of the vote, exceeding the two-thirds super majority. The sales tax will generate a dedicated revenue stream sufficient to fulfill VTA’s obligation to BART for the operation, maintenance and future capital reserve of the system without impacting existing and planned service levels for VTA bus and light rail service.

The 1/8 cent sales tax will only be collected when federal and state funds are secured. Federal funds will be considered secured and matched at the time VTA receives a Full Funding Grant Agreement or its equivalent of at least $750 million from the FTA. The federal government has never reneged on a Full Funding Grant Agreement.

BART Operating Subsidy

This memorandum summarizes and presents the analysis that calculates the operating subsidy amount and demonstrates that a 1/8-cent sales tax covers this expense.

STATE SUPPORT:

Traffic Congestion Relief Program (TCRP)

In July 2009 VTA was allocated $40 million in TCRP funds by the California Transportation Commission (CTC), the first installment of an anticipated six, totaling almost $240 million. The first $40 million allocation is designated for project engineering during the final design stage.

FEDERAL SUPPORT:

New Starts Program:

The Federal Transit Administration's (FTA) New Starts program is the federal government's primary discretionary financial resource for supporting locally planned, constructed, implemented and operated major transit projects. This program funds new commuter rail, light rail, heavy rail and bus rapid transit projects, streetcars and ferries, as well as extensions to existing transit systems in every area of the country.

Local support required:   New Starts projects, like all transportation investments in metropolitan areas, must emerge from a regional, multi-modal transportation planning process. In the San Francisco Bay Area, the Metropolitan Transportation Commission (MTC) in the metropolitan planning organization (MPO) that oversees transportation planning for the nine Bay Area Counties. The MTC has included the BART Silicon Valley Extension in their Transportation 2035 plan.

Projects are evaluated:   New Starts projects undergo evaluation by the FTA throughout the entire project development process. Based on this evaluation, the FTA makes decisions about moving projects forward, from preliminary engineering to final design, to annual funding recommendations to Congress and to the execution of a Full Funding Grant Agreement.

VTA has applied for $900 million in New Starts Program funding and is anticipating a decision in early 2010 to begin construction on the first 10 miles of BART Silicon Valley.