I am no accountant, but I do know a thing or two about
transportation finance.
In his letter of Tuesday, Aug. 26, 2003,

Solution to public-sector transit is privatization,

Joseph P. Thompson clearly gives false information to your
readership regarding funding of public transit in San Benito
County, or anywhere in this state.
I am no accountant, but I do know a thing or two about transportation finance.

In his letter of Tuesday, Aug. 26, 2003, “Solution to public-sector transit is privatization,” Joseph P. Thompson clearly gives false information to your readership regarding funding of public transit in San Benito County, or anywhere in this state.

First, Article XIX of the California constitution unfortunately prevents the application of gas taxes toward transit operating purposes.

They can be used for some capital applications, but they are restricted to “transit guideway” measures, so not even bus purchases are covered.

Second, your readers should know that the major expense in running a transit system is the operating costs, such as driver salary and fuel, not the capital expenses, such as the bus cost itself.

In fact, the CFO of Santa Clara’s transit system recently explained that for every $1 of capital expense, expect to match it with $6 of operating funds.

In Santa Clara County, about 80 percent of the revenue to keep the buses and trains running comes from sales taxes – so rather than motorists subsidizing these costs, all consumers in the county bear the burden.

Sales taxes are also applied toward highway projects, so both motorists and transit patrons receive this subsidy.

Irvin Dawid candidate, Master of Urban Planning, San Jose State University

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