California budget includes $750-million loan for Bay Area transit agencies

California budget includes $750-million loan for Bay Area transit agencies

The California budget includes more than $1 billion in funding and a $750-million loan for Bay Area transit.

SAN FRANCISCO - The California budget includes more than $1 billion in funding and a $750-million loan for Bay Area transit. 

Gov. Gavin Newsom conditionally signed the budget on Friday. 

While details on the interest rate and when it needs to be paid back to the state haven't been finalized yet, the idea is that the loan will be the temporary relief these transit agencies need to survive until voters weigh a tax measure next year. 

"If we do nothing there will be massive, massive service cuts. BART will basically collapse, Muni will cut service by as much as 50%, so elimination of half of all Muni service, AC Transit, Caltrain, these systems will really start unraveling. And that would be horrible for the Bay Area, for our economy, for people’s ability to get around, for traffic," said Sen. Scott Wiener (D-San Francisco). "

With ridership down and Covid-19 emergency funds running out, Bay Area transit agencies like BART, AC Transit, Caltrain and Muni are struggling. Many are dealing with millions of dollars in deficits, which could lead to service being slashed to avoid even larger deficits.

Sen. Wiener is one of the authors of the bill to add a regional ballot measure to provide more long-term support for transit agencies.

"Even people who don’t take transit get it, they understand that the Bay Area doesn’t work without transit. And they understand that their car commute is going to be much worse if public transportation unravels," said Wiener.