MEDIA STATEMENT
SAN JOSE, Calif.—The Santa Clara Valley Transportation Authority (VTA) appreciates the Santa Clara County Civil Grand Jury's review of the BART Silicon Valley Phase II (BSVII) Project. We take the report and its recommendations seriously and remain committed to continuous improvement, transparency, and accountability.
BSVII is a generational infrastructure investment that will extend BART into downtown San Jose and Santa Clara, improving regional connectivity, expanding access to jobs and opportunities, and supporting Silicon Valley's long-term economic vitality.
The project is moving forward and is in active construction. VTA recently achieved a major milestone with completion of support of excavation (SOE) for the launch structure, paving the way for the arrival of the tunnel boring machine and the next phase of construction. Construction activities are on time and on budget.
VTA has made significant improvements to project governance, oversight, and communication. These include establishing the BSVII Oversight Committee, strengthening coordination with BART, providing monthly project updates to the VTA Board of Directors, and providing regular updates to state and federal elected officials. Many of the issues identified in the report have been raised previously in various forums. Most have been resolved, while others are actively being addressed.
The project is supported by an experienced team of transportation, engineering, construction, finance, and project delivery professionals dedicated to successfully advancing this critical investment for the region.
VTA will carefully review the report's findings and recommendations and provide a formal response within the required 90-day timeframe. As construction progresses, we remain focused on delivering a transformative transit project that will serve Santa Clara County for generations to come.
Clarifications on Civil Grand Jury Report on BART Silicon Valley Phase II
As the Santa Clara Valley Transportation Authority (VTA), through its Board of Directors, prepares its formal response to the findings and recommendations contained in the Civil Grand Jury Report, VTA’s Management and Oversight of BART Silicon Valley Phase II, within the statutorily required 90-day period, VTA staff have identified several areas of the report that warrant clarification. While most of these matters will be addressed in VTA’s formal response, which will be approved by the Board of Directors, the following three issues are particularly important to clarify at this time to ensure the public has appropriate context and a complete understanding of the facts.
No Project Funding Tied to 2026 Ballot Measure
On pages 5 and 6 of the report, reference is made to $375 million in project funding purportedly associated with a potential November 2026 ballot measure. This characterization is incorrect. The $375 million identified for the Project is derived from Regional Measure 3 (RM3), the toll revenue measure approved by Bay Area voters in 2018. Accordingly, none of the funding currently anticipated for the BART Silicon Valley Phase II Project is contingent upon the approval of any future sales tax measure. VTA has also been clear that, should a potential ballot measure be approved in November 2026, those revenues would not be used to fund the BART Silicon Valley Phase II Project.
BSVII Cash Flow Model in Place
On pages 8, 12, and 13, the report states that VTA failed to maintain a cash flow model for the BART Silicon Valley Phase II (BSVII) Project. As this assertion is identified as a formal finding in the report, VTA’s Board of Directors may provide additional detail in its official response. However, VTA wishes to clarify that a comprehensive cash flow model has been developed and continuously maintained for BSVII, building upon the financial modeling framework established for BART Silicon Valley Phase I. The model compiles historical financial data and forecasts more than 20 years of project and agency-wide sources and uses of funds. It is fully compliant with Federal Transit Administration (FTA) financial planning guidelines and was most recently submitted to the FTA in support of VTA’s Entry into Engineering application in early 2024.
State Funding Is Fully Committed
On page 10, under the discussion of “State Funding Risk,” the report references $1.5 billion in Project funding from the Metropolitan Transportation Commission and the Transit and Intercity Rail Capital Program, stating that only $200 million has been committed. VTA wishes to clarify that the full $1.5 billion has been awarded and committed by the State for the Project. To date, approximately $240 million of those committed funds has been formally allocated. The remaining committed funding will be allocated in accordance with the applicable funding agreements and the Project’s cash flow needs as construction progresses.
