Transit Budgets: California Courts Rule State Took Public Transit Money Illegally

On June 30, 2009, the California State Court of Appeals (Third District) ruled that the State of California has been illegally programming money approved by the voters of California for public transit purposes to non-public transit programs since 2007. Though this ruling will be appealed by the Governor's office to the State Supreme Court, and though the Appeals Court has said that it cannot enforce the ruling retro-actively, this decision could have wide ranging repercussions. How the decision impacts the State's budget discussions for Fiscal Year 2009/2010 is uncertain, since the budget proposals adopted by the Governor and legislators in February 2008 included over $900 million being taken from public transit to cover FY09/10 general fund budget issues.

The California Transit Association, the organization that filed the lawsuit, has more information on the outcome and next steps on their web page.

Santa Rosa CityBus alone was estimated to have lost approximately $1.5 million to $2 million worth of State Transit Assistance funds in FY08/09 because of actions taken by the State to divert funds from public transit to the general fund programs.