Gov. Gavin Newsom’s administration is pitching a plan to cash-strapped Bay Area transit agencies that would give them access to funding earmarked for long-term projects they could use to fend off service cuts.
What happened: A one-page memo shared with POLITICO by the California Department of Finance outlines a proposal under which the state would advance funding for projects with longer completion timelines and authorize the Metropolitan Transportation Commission, the coordinating agency for Bay Area rail and bus services, to issue short-term loans using that cash.
Finance spokesperson H.D. Palmer said the proposal would provide transit agencies with a financing option to address an anticipated funding shortfall through 2026.
“We’re following through on that commitment and presenting a framework to these agencies that addresses their identified need and does so in a way that we believe utilizes resources that have already been awarded,” Palmer said. “We look forward to continuing discussions and constructive suggestions on this framework from the agencies in the coming weeks.”
Leave a Reply