BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 432|
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THIRD READING
Bill No: AB 432
Author: Dickinson (D), et al.
Amended: 6/21/12 in Senate
Vote: 21
SENATE TRANSPORTATION & HOUSING COMMITTEE : 8-0, 7/3/12
AYES: DeSaulnier, Gaines, Kehoe, Lowenthal, Pavley, Rubio,
Simitian, Wyland
NO VOTE RECORDED: Harman
ASSEMBLY FLOOR : Not relevant
SUBJECT : Transit: Sacramento County
SOURCE : Sacramento Area Council of Governments
DIGEST : 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.
ANALYSIS : The Legislature enacted the Transportation
Development Act (TDA), SB 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
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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% 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%. 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 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% and SACOG finds that the services are
coordinated.
Comments
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.
Farebox ratio status of Sacramento County operators .
According to the State 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%
Folsom - 21.9%
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Elk Grove - 16.6%
County of Sacramento - 8.9%
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.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 7/6/12)
Sacramento Area Council of Governments (source)
CTW:m 7/6/12 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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