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The Santa Clara Valley Transportation Authority board of
directors passed a balanced budget that incorporates savings in the
form of service changes, fare increases, and negotiated wage
freezes.
Morgan Hill

The Santa Clara Valley Transportation Authority board of directors passed a balanced budget that incorporates savings in the form of service changes, fare increases, and negotiated wage freezes.

Facing a $30 million revenue shortfall over the next two years, the VTA board voted unanimously June 4 to adopt budgets for the years 2010 and 2011 with total expenditures of $353 million and $360 million, respectively.

“We have balanced the budget and maintained the better part of our service,” said board member Don Gage.

He noted that the budget includes “a few” layoffs, and if union groups had not agreed to a freeze in wages and benefits for the next two years then the number of lost jobs would have been “significant.” He added that the VTA is still in the negotiation process with one of the four unions with whom the agency works.

VTA spokeswoman Jennie Loft added the completed agreements also include furloughs.

She said the budget preserves most of the transportation agency’s bus and light rail service. She said budget balancing strategies include a reduction in contracted services, decreased board member stipends, and fare increases.

The latter of these consist of raising fixed-route fare increases from $1.75 to $2 for an adult one-way fare, and a hike in the base rate for a one-way Paratransit trip from $3.50 to $4.

During the public outreach process, VTA staff heard a significant response from clients of Paratransit, which provides transportation services for disabled people. As a result, the board will continue to offer “premium” service to Paratransit riders, which consists of picking up individuals beyond the required .75-mile radius of established bus stops.

The budget also includes a 20 percent rate hike for the Eco-Pass, an annual light rail and bus pass available to organizations with a large number of employees or residents, Loft said.

The rate increases will take effect Jan. 1, 2010.

VTA is short on revenue because of vastly declining sales taxes, one of the agency’s primary funding sources, and the elimination of State Transportation Assistance funding.

“During these tough economic times, we had to make some difficult decisions,” said VTA chair Dolly Sandoval. “However, we made strategic decisions that will continue to serve residents with a quality transportation system.”

The budget also includes the use of federal stimulus funds to pay for preventive maintenance and selling advertising space on light rail cars. Gage added the VTA will use some of its reserve funds to pay for expenses.

In 2009, bus, light rail, and Paratransit fares accounted for about 11 percent of VTA revenues, according to Loft. Sales tax, state assistance and federal grants account for most of the remainder of revenues. In 2008, total VTA income added up to about $378 million.

Some service in Morgan Hill and Gilroy was reduced in the VTA’s annual transit plan earlier this year as a response to changes in ridership over the last year.

These include increasing the frequency of buses on the 68 line, which goes from Gilroy to San Jose via Monterey Road, from 30-minute to 15-minute intervals; and the elimination of the line 15 community bus which goes from the area of La Crosse and Calle Enrique south of town, to City Hall and the public library, to the Jackson Oaks area on the eastern end of Dunne Avenue.

Changes in Gilroy include improvements to the line 14 and line 17 community routes. The new line 14 will be straightened out and extended to serve Valley Health Center, Kaiser Medical Center and Saint Louise Regional Hospital. Furthermore, the frequency of the route will operate every 30 minutes instead of every 60 minutes.

The bus route changes will take effect July 13.

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Michael Moore is an award-winning journalist who has worked as a reporter and editor for the Morgan Hill Times, Hollister Free Lance and Gilroy Dispatch since 2008. During that time, he has covered crime, breaking news, local government, education, entertainment and more.

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