PREPARED BY: MATT RODRIGUEZ DATE OF MEETING: 06/162024
SUBJECT:
TITLE
CONSIDER ADOPTING RESOLUTION SUPPORTING STATE-WIDE AND REGIONAL FUNDING FOR BAY AREA PUBLIC TRANSIT AGENCIES, AND SENATE BILL 63 (WIENER/ARREGUIN) PROPOSED LEGISLATION FOR 2025-26
CEQA: This proposed action is not a project as defined by CEQA.
Label
CITY MANAGER RECOMMENDATION
Recommendation
Adopt Resolution
Body
Compliance statements
The following Major Policy Areas: Building a Healthy Community and Enhance Community Resilience are contained in the recently adopted FY 2025-27 City Council Priority Work Plan, adopted April 7, 2025
BACKGROUND
On May 5, 2025, the City Council, by majority vote via minute action: (1) Acknowledged a list of active 2025-26 State of California Legislation recently introduced which may impact the City’s adopted policy interests; and (2) Authorized the City Manager to coordinate any appropriate legislative advocacy, action or response on behalf of the City, jointly with Mayor Arturo Cruz and the City’s Lobbyist, to any State Legislator(s), State of California Legislative Policy Committee(s), and/or Governor as deemed necessary.
Sustainable Transit Funding Needed
Bay Area regional transit agencies are facing substantial operating funding shortfalls to sustain vitally needed transit operations. Unfortunately, the Bay Area Rapid Transit (BART) is facing a projected budget shortfall of $385 million, and AC Transit is facing a shortfall of $60 million annually, and both agencies will face drastic service cuts by 2027.
The State of California has been underfunding transit operations state-wide as compared to many other states for decades. In 2019, transit agencies in the Bay Area received, on average, less than 16 percent of their operating funding from the state, compared to 21 percent state funding in Chicago, 30 percent in New York City, 44 percent in Boston, and 50 percent in Philadelphia.
Proposed SB 63 (Wiener/Arrequin) Legislation
On January 29, 2025, State Senator Wiener (D-11th) and State Senator Arreguin (D-12th) both co-wrote and introduced the SB 63 legislation which proposes to establish a Transportation Revenue Measure District (District) with jurisdiction extending throughout the boundaries of the Counties of Alameda and Contra Costa and the City and County of San Francisco, and would require the District to be governed by the same board that governs the commission, thereby imposing a state-mandated local program.
The SB 63 legislation would authorize a new, retail transaction and use tax applicable to the entire District to be imposed by the Board of the District or by a qualified voter initiative for a duration of 10 to 15 years, inclusive, and generally in an amount of 0.5% (half-cent), subject to voter approval at the November 3, 2026, state-wide general election.
After allocations are made for various administrative expenses, the bill if adopted by the State Legislature and signed by the Governor, would require an unspecified portion of the proceeds of the new sales tax to be allocated by the Commission to transit initiatives included in a specified commission plan and to the Alameda-Contra Costa Transit District (AC Transit), the Peninsula Rail Transit District (Caltrain), the San Francisco Bay Area Rapid Transit District (BART), and the San Francisco Metropolitan Transportation Agency (MTC) for operating expenses, and would require the remaining proceeds to be subvened directly to the specific Bay Area counties comprising the district for public transportation expenses, as prescribed in the bill (See Attachment).
The following justifications for supporting the SB 63 legislation include, but are not limited to the following:
• Many local residents and economies of West Contra Costa County region depend on public transit, particularly BART, WestCat, AC Transit, San Francisco Bay Ferry, and East Bay Paratransit;
• West County communities are at risk of losing public transit service and suffering fare increases as a result of the expiration of federal operations funds for transit systems;
• Reliable, frequent, affordable, safe, and sustainable public transit is essential to the mobility needs of many in our community, including youth, elders, disabled people, and those who do not have drivers' licenses as well as those who simply cannot afford to own and drive an automobile;
• Transit service is fundamental to access for affordable housing and cuts to service combined with increased fare costs impede development of new affordable housing,
• Cutting transit service threatens our efforts to reduce greenhouse gas emissions, while increasing traffic congestion and costs for cash-strapped households;
• Major cuts to public transit would cause massive ripple effects for our local economy. Without good quality public transit, fewer customers and employees will be able to access businesses and thousands of low income people will lose their only transportation option;
• There are 800,000 jobs within a 15-minute walk to a BART station and major cuts to
public transit could cause traffic on the Bay Bridge to increase by 72% and cause commutes for key routes connecting the East Bay region to San Francisco to increase by up to 10 hours per week;
• BART experienced ridership of over 50 million in calendar year 2024, AC Transit experienced ridership of nearly 40 million for fiscal year ending June 30, 2024, and the Richmond Ferry route experienced +20% annual growth in calendar year 2024; and
• State Senator Arreguin, together with State Assemblymember Gonzalez, have submitted a Proposed 2025-26 State of CA Budget request to increase public transit funding by $2 billion for the 2025-26 period.
Support from Other Public Entities
A Resolution of Support was adopted by the West Contra Costa Transportation Advisory Commission (WCCTAC) at their Board of Commissioners meeting on May 23, 2025. In the adopted Resolution, WCCTAC urged State Senator Jesse Arreguin and State Assemblymember Buffy Wicks to champion a bill that achieves that vision in the State Legislature this year, which is funded primarily with progressive sources, rather than a sales tax, to ensure that the burden of paying for improved transportation options does not fall most heavily on those with the least resources. Moreover, WCCTAC also urged State Assemblymember Wicks, State Senator Arreguin, and their colleagues, as well as Governor Newsom, to underscore the current $2 billion State of CA Budget 2025-26 request, and any further State of CA budget actions that significantly increase the State's support for transit operating needs on a sustainable basis in the Bay Area region.
Additionally, the City of El Cerrito City Council also adopted a Resolution of Support for the Transit Funding Mechanism and SB 63 legislation on May 20, 2025.
Current SB 63 Legislation (STATUS)
At time of agenda preparation, the proposed SB 63 legislation passed the Senate Appropriations Committee as of May 23, 2025, and then proceeded to its third reading in the State Senate on May 27, 2025, and was subsequently sent to the State Assembly. As of June 3, 2025, the State Assembly completed its first reading of the legislation.
FISCAL IMPACT
None associated with this item.
ATTACHMENTS:
1). Proposed Resolution
2). SB 63 (Wiener/Arreguin) Proposed Legislation
3). SB 63 (Wiener/Arreguin) Bill Analysis