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Rail News Home Passenger Rail

6/24/2009



Rail News: Passenger Rail

BART's sales tax revenue plummets, labor agreements near expiration  


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Bay Area Rapid Transit's (BART) financial situation continues to worsen.

The agency recently announced that in the fourth quarter of fiscal-year 2009, sales tax revenue plummeted 20 percent compared with the same FY2008 period — the worst sales tax revenue decline in BART's 37-year history. The drop translates to a loss of nearly $10 million. For the entire fiscal year, sales tax revenues are down $18 million.

In addition, the recession is causing ridership to decline. During June's first half, ridership dropped 10 percent vs. the same 2008 period.

Meanwhile, the agency is working to negotiate contracts with all five of its labor unions. Current agreements expire at midnight on June 30. To help address a four-year, $250 million deficit, BART has proposed that both union and non-union employees cover more of the cost of their benefits and pensions. The agency also has proposed eliminating contract language that limits the agency's right to improve productivity by changing outdated work rules, BART said.

However, the unions have not yet agreed to any of the agency's proposals, according to BART. Bay area transportation officials are urging commuters to review their contingency plans for getting to and from work should the unions launch a strike at the end of the month.