BILL ANALYSIS �
SENATE TRANSPORTATION & HOUSING COMMITTEE BILL NO: AB 432
SENATOR MARK DESAULNIER, CHAIRMAN AUTHOR: dickinson
VERSION:
6/21/2012
Analysis by: Art Bauer FISCAL: no
Hearing date: July 3, 2012
SUBJECT:
Transportation funding
DESCRIPTION:
This bill authorizes the Sacramento Area Council of Governments
(SACOG) to create a combined farebox recovery ratio for the
Sacramento County transit operators-Sacramento Regional Transit,
Folsom transit, Elk Grove transit, and Sacramento County transit
services-to be eligible to receive subsidies from the
Transportation Development Act (TDA).
ANALYSIS:
The Legislature enacted the Transportation Development Act
(TDA), Senate Bill 325, Chapter 1400, Statutes of 1971, in order
to ensure "the efficient and orderly movement of people and
goods in the urban areas of the state." The TDA authorized the
boards of supervisors in each county to impose a percent local
sales tax for transportation purposes. All counties imposed the
tax in 1972, because if they had not, the state, under
California's uniform tax law, would not have collected the 1
percent local sales tax that supports the general funds of
cities and counties.
To be eligible to receive TDA funds, a transit operator must
meet a specified ratio of fare revenues to operating cost. The
ratio varies. For operators that were providing transit at the
time this provision become law in 1979, their ratio is what they
achieved that year. For operators who began providing service
after 1979, their ratio is the average of the first three years
of operation, provided it is not below 20 percent. New
operators in nonurbanized areas have five-years to determine
their farebox recovery ratio. In addition, if an operator
receives funds from a local transportation sales tax or some
other local revenue sources, it can meet its farebox recovery
AB 432 (DICKINSON) Page 2
ratio by combining fare revenues with that local support.
This bill authorizes SACOG to determine the farebox recovery
ratio for all operators in Sacramento County, provided the ratio
for Sacramento Regional Transit (RT) is not less than 23 percent
and SACOG finds that the services are coordinate.
COMMENTS:
1.Purpose . The purpose of this bill is to ensure that the three
transit operators- Elk Grove, Folsom, and the County of
Sacramento- in the SACOG area will remain eligible to receive
TDA funding by creating a regional ratio of fare revenues to
operating cost that will include RT. Essentially, RT's revenue
base will ensure that the three smaller operators will remain
eligible for TDA funding.
2.Farebox ratio status of Sacramento County operators .
According to the Controller's report on TDA expenditures for
2010, the ratio of fare revenues to operating cost for the
Sacramento County transit operators is as follows: RT 24
percent, Folsom 21.9 percent, Elk Grove 16.6 percent, and
County of Sacramento 8.9 percent.
Other than RT, the remaining operators are finding it
difficult to meet the farebox recovery minimum requirements.
In fact, SACOG, under the terms of TDA, had to penalize Elk
Grove by withholding $300,000 from the city's apportionment of
funds for failing to meet the requirement.
By linking the three smaller operators to RT, SACOG will have
to manage their farebox recovery ratio in a way that ensures
the suburban operators continue to maintain a fare level that
does not require RT to increase fares or alter its service
levels to accommodate the smaller operators. Combining farebox
recovery ratios are authorized for the BART service area and
for the service area of the Metropolitan Transit System in San
Diego.
Assembly Votes:
Previous votes are not relevant.
POSITIONS: (Communicated to the committee before noon on
Wednesday,
June 27, 2012)
AB 432 (DICKINSON) Page 3
SUPPORT: City of Folsom
County of Sacramento
OPPOSED: None received.