"That could mean that Newsom is holding out on the loan as a bargaining chip over lawmakers before the end of the session, a tactic he has used before. The budget is one of the only areas where the governor has leverage to advance his policy priorities. This year, they include a controversial plans to renew the state's cap-and-trade program, as well as the expensive Delta water tunnel that Newsom says is an essential part of California's drought mitigation strategy."
"BART, AC Transit and Muni, among other agencies, have been counting on the $750 million to help cover their operations until a long-term source of revenue like a proposed regional sales tax comes together to help fill the funding gap beginning in fiscal year 2027. Without the loan, BART has said it might have to cancel two of its five lines, and reduce service from every 20 minutes to every 60 minutes. Other agencies also anticipate ending service earlier, or increasing the time between buses."
Governor Gavin Newsom has not yet authorized a $750 million state loan intended to prevent Bay Area transit service cuts while negotiations continue over the loan's terms. The governor's office says officials are working with stakeholders to agree on parameters and aims to finalize terms by fall. The delay may reflect leverage tied to the state budget and other priorities, including cap-and-trade renewal and the Delta water tunnel. Transit agencies such as BART, AC Transit and Muni have counted on the loan to cover operations until a long-term revenue source emerges in fiscal 2027. Without the loan, agencies anticipate significant service reductions.
Read at www.mercurynews.com
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