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VTA Board Authorizes Fare Increase Acceleration
| Release Number: | nr08-06 |
| Release Date: | Aug 07, 2009 |
State sales tax revenue continue to drop, larger deficit than anticipated
San Jose, Calif. – Last night, the Santa Clara Valley Transportation Authority (VTA) Board of Directors approved a fare increase acceleration from January 2010 to October 2009 to partially address the continued decline in sales revenue. The acceleration of the fare increase also includes changes to paratransit fares, paratransit services, and scheduling options. The revenue generated from this proposal is estimated at $1 million. The board approved a fare increase at their June 2009 meeting when they authorized the FY 10 and FY 11 budget. The fare increase proposal will go into effect on October 1, 2009.
“No board member makes this decision lightly,” said Dolly Sandoval, VTA Board Chair and Cupertino City Council Member. “We understand the hardship that this will have on our riders, but we have a lot of competing needs that the board must address because of the economic downturn.”
During the budget discussions in the spring, the proposed budget plan was presented to the five VTA advisory committees. The VTA Policy Advisory Committee, comprised of 16 council members representing cities in Santa Clara County, advised the board that the fare increase be moved up 3 months to help fill the budget shortfall. At the June board meeting, the board asked staff to look into the feasibility of this idea, resulting in the item on the August board agenda.
Transit agencies across California have been forced to implement fare increases and service reductions as a consequence of the complete elimination of state funding for transit, as well as declining sales tax revenue. In the third quarter of FY 09, sales tax receipts fell by 21 percent, representing a loss of $5.8 million. VTA’s budget projected an 8 percent decline in the same period. This latest decline exacerbates the budget deficit that VTA has been working diligently to address in recent months. In June, the VTA budget gap was $30 million. With the latest decline in sales tax revenue, the gap has increased to approximately $36 million.
“The State has de-funded public transportation and the sales tax revenues continue to significantly decrease due to the recession,” said Michael T. Burns, VTA General Manager. “We have implemented many cost saving strategies, but we need to continue to look for other means to fill in the growing budget deficit.”
In June, three VTA unions (Transportation Authority Engineers and Architects Association; Association of Federal, State, County and Municipal Employees; Service Employees International Union) joined with the non- represented executive management and their support staff in agreeing to $17.3 million in labor savings concessions, including furloughs and wage freezes for the coming two fiscal years. One other union (Amalgamated Transit Union) is still in discussions with VTA.
VTA is among the many transit agencies including BART, SFMTA, AC Transit, Caltrain, and SamTrans to increase fares in response to the downturn economy. VTA fare increases include fixed route, paratransit, and Eco-Pass fares. Fixed route cash fare will increase from $1.75 to $2 for an adult one way fare with proportional increases in the monthly and day pass prices. The paratransit one-way trip base fare will increase from $3.50 to $4. VTA will continue to offer premium paratransit services, which riders are willing to offset costs. Eco-Pass rates will increase 20 percent. Fare increase will be in effect beginning October 1, 2009.
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About VTA
Santa Clara Valley Transportation Authority (VTA) is an independent special
district that provides sustainable, accessible, community-focused transportation options that are innovative, environmentally responsible, and promote the vitality
of our region. VTA is responsible for bus, light rail and paratransit operations; congestion management; specific highway improvement projects; countywide transportation planning and provides these services throughout the county including the cities of Campbell, Cupertino, Gilroy, Los Altos, Los Altos Hills, Los Gatos, Milpitas, Monte Sereno, Morgan Hill, Mountain View, Palo Alto, San Jose, Santa Clara, Saratoga and Sunnyvale. VTA continually builds partnerships to deliver transportation solutions that meet the evolving mobility needs of Santa Clara County
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