Economic uncertainty clouds transit agencies' near-term outlook

With demand for public transit higher than it’s been in 50 years, transit agencies should feel pretty good about the times ahead, right? Not necessarily. Lingering economic uncertainty is giving some agencies reason to pause on the near-term planning front.

Last month, officials at the North County Transit District announced they plan to cut service and raise fares in FY2009 if fuel prices keep increasing and dedicated transit funds continue to decline. Officials also are monitoring how much transportation funding California transfers from to the state’s general fund, something state officials have done in the past.

Bay Area Rapid Transit officials took a similarly cautious approach when crafting the proposed $673.4 million FY2009 operating budget.

“The budget reflects the cost of operating an aging system at unprecedented service levels at a time of economic uncertainty,” said General Manager Dorothy Dugger during her budget presentation to the board. “The economic news is worrisome and has caused us to take a cautious outlook on available revenues for the upcoming fiscal year. The state of the economy has always impacted [BART’s] two primary revenue sources, which are ridership and sales taxes.”

The good and the bad

Despite a successful 2007 — during which net income increased 55.6 percent to $16.3 million, freight revenue grew 2.4 percent to $91.8 million and passenger revenue rose 9.3 percent to $23.3 million — Alaska Railroad Corp. officials are doing their share of soul searching.

“While we’re optimistic about Alaska’s future, it’s important to temper that optimism with realism,” said Chairman John Binkley in a prepared statement. “Our management has begun taking that direction to heart, conducting three audits and numerous assessments to help build the next five-year plan ... [which] will help the railroad weather an uncertain future — perhaps more economic downturn on the one extreme, or perhaps fielding business growth.”

Meanwhile, the Los Angeles County Metropolitan Transportation Authority is seeking a new way to fund transit projects and road improvements.

Last month, the board directed authority officials to prepare a report outlining projects that could be completed if county voters approved a new transportation sales tax. The report also will propose options for accelerating the schedules of new rail and bus projects already in the planning stages, and provide a list of short-term transportation improvements that could help ease traffic congestion.

Board members will review the projects in early summer and determine whether to request the Los Angeles County Board of Supervisors place a new half-cent sales tax on the November ballot to help fund county transportation projects.