Pedestrian View Of Los Angeles

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Sunday, May 31, 2009

MTA spending plan expands by $500 million with federal stimulus cash

MTA spending plan expands by $500 million with federal stimulus cash - LA Daily News
MTA spending plan expands by $500 million with federal stimulus cash
By Sue Doyle, Staff Writer
Updated: 05/28/2009 08:04:49 PM PDT

Pushing ahead with massive plans for highway expansion and rail projects, the Metropolitan Transportation Authority board on Thursday adopted a $3.9 billion budget for the next fiscal year.

The spending plan is 15 percent, or $500 million, more than last year's budget thanks to new money from the federal stimulus package and anticipated revenue from Measure R, a half-penny per dollar sales tax that kicks in July 1. The tax is expected to generate up to $40 billion over 30 years for transportation projects.

The San Fernando Valley will see two big projects from the plan: a four-mile extension of the Orange Line busway from Warner Center to Chatsworth and a $1 billion car-pool lane on the 405 Freeway through the Sepulveda Pass. Los Angeles County will also get 219 new buses.

"The public will see a lot of positive improvements," said Marc Littman, spokesman for the county's transportation agency, known as Metro. "We're going to get through this budget year in good shape."

The spending plan averts fare increases - a bonus promised to voters if they approved Measure R, which they did in November.

But Littman warned that tougher times lie ahead.

The county transportation agency saw $200 million slashed from the budget after Sacramento officials this year suspended a state transit assistance program for five years. Metro counts on the money to operate its bus and rail system.

So as the agency expands its transportation
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system, it is losing out on money to operate it, Littman said.

At the same time, sales tax revenues are down 18 percent across the state because of the recession, according to the state Department of Finance. Metro has reported a 5 percent drop in revenue from two local sales taxes that annually provide about 60 percent of its budget.

To keep this budget balanced, Metro cut $130 million internally, trimmed administrative costs and is not giving employees raises for the fiscal year, beginning July 1, Littman said.

Officials also dipped into reserve funds from one-time deals such as land sales. The transportation agency will likely run out of reserves in 15 months, leaving officials warning that the budget for fiscal year 2011 will be rough.

"Reserves don't last forever," said Terry Matsumodo, Metro chief financial services officer.

Across the county, several multimillion dollar allocations for rail projects were approved in last-minute amendments to the spending plan.

A proposed rail line, the Gold Line Foothill Extension, received $10 million to link Pasadena and Montclair, with stops planned at several cities across the eastern county.

A downtown rail line, the Green Line, received $5 million on Thursday to connect to Los Angeles International Airport.

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