VTA Connections

2008: An Eventful Year of Change

Dear Friend of VTA:

Last December, I was truly looking forward to 2008.  I knew we had a busy year ahead, however, I honestly cannot say that I foresaw what an eventful year of change it would be. 

2008 started off at full throttle, with the successful launch of our New Bus Service in January.  This strategic realignment of resources contributed to record-setting ridership increases on both the bus and light rail systems. 

Throughout the spring and summer, the VTA Board, advisory committees, and staff worked on the development of updated Vision, Mission, and Values statements, which provide a framework for critical policy choices and the direction that will move VTA forward in the coming years. 

One change, that very few of us saw coming, was the dramatic increase in the cost of gasoline.  This unprecedented spike in the cost of fuel motivated thousands of commuters to leave their cars at home and contributed to an increased awareness of the importance of investing in sustainable, public transit options.  Today, even after gas prices have dropped back down to less than $2 per gallon, transit ridership levels remain high.

Worldwide, financial markets changed dramatically in the last six months of 2008. These changes have had significant ripple effects throughout our national and state economies and will certainly impact VTA in the months to come.  Many experts believe it will take months, possibly more than a year, for the country to fully pull out of the current economic nose dive.  California’s state budget deficit is currently estimated to exceed $40 billion over the next 20 months, making it increasingly difficult to maintain transportation funding, particularly for transit.  The Governor has twice reconvened the legislature in emergency sessions to deal with the state’s multi-billion dollar budget deficit and cash crunch, yet no consensus has been reached for how to bridge the gaping deficit and put our state finances back on track.  Locally, the contraction in retail spending has impacted sales tax revenue, and it is estimated that VTA will face a shortfall of $35 million this fiscal year.

Fortunately, VTA has been conservative in its budget projections and prudent in its financial management. We will continue to closely manage our expenses and look for opportunities to leverage resources as we navigate through the months ahead, but we know we must plan for turbulent and extremely challenging fiscal conditions as we build our next two-year budget.

Undoubtedly, these changes will seriously impact many VTA customers.  VTA provides a critical public service to thousands who rely on bus and light rail everyday to get to work, school, day care, and medical appointments.  Throughout this economic crisis, we stand committed to doing everything we can to preserve core transit service, both to serve those who choose to ride transit as a way to reduce congestion and harmful emissions, but, perhaps most importantly, for those who depend on us for access to essential services.

Notwithstanding these tough economic times, in November, Santa Clara County residents gave VTA a resounding vote of confidence with the passage of Measures B, C, and D. The passage of Measure B, the 1/8th cent sales tax to fund operating and maintenance costs for the BART extension to Santa Clara County, signaled the public’s unwavering commitment to this project (66.78%) despite the financial uncertainty of our times.  Voters also approved Proposition 1A bonds to fund the high speed rail project that will connect the San Francisco Bay Area with southern California.

In 2009, VTA will continue to look for opportunities and funding for all Measure A projects, including efforts to obtain funding as part of the federal stimulus package, as well as in connection with the high speed rail project.

For many, the current rate of change is unsettling, and every decision seems fraught with peril.  We cannot allow our present uncertainty to paralyze our every move.  As we venture into 2009, I look forward to your continued hard work and creative suggestions for ways to manage expenses, improve services, and realize our VTA vision.

Wishing you all the best in 2009.

Michael T. Burns
General Manager

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About VTA
Santa Clara Valley Transportation Authority (VTA) is an independent special district responsible for bus, light rail and paratransit operations; congestion management; specific highway improvement projects; and countywide transportation planning. As such, VTA is both an accessible transit provider and multi-modal transportation planning organization involved with transit, highways and roadways, bikeways and pedestrian facilities.