☆ VTA doesn't really need a bailout
Bay Area voters are being asked to pass a half-cent sales tax increase this November to keep transit agencies like VTA on the rails. But what if VTA doesn’t need a rescue? Mark Joffe of CocoTax explains. An Opp Now exclusive.
A lot to ask for a non-crisis
In a post on X last week, Marc Joffe says VTA is running even in the near term. We asked him why the agency needs an extra $264 million a year.
“For Santa Clara County, the tax is too large for the problem it is supposed to address: operating deficits. VTA already receives a large amount of local tax revenue, and there would be no need to slash service if the tax doesn’t pass,” says Joffe.
Where will the revenue go?
“I expect VTA to use the revenue to fund the BART extension. To get federal funding, VTA has to fully lock down the local share of funding. Right now, they are short. Revenue from the SB 63 tax would close the gap,” says Joffe.
How could he suggest such a thing?
“Transit bros are upset with me saying that the Bay Area transit tax is a bailout for the BART to San Jose boondoggle,” said Joffe in another X post last night. “They should read the SCC Civil Grand Jury report which says ‘the funding strategy assumes $375 million from the yet-to-be-approved regional sales tax measure.’”
Joffe also points us to a finding from the report: “The BSVII project currently requires voter approval of additional sales tax measures to address gaps in construction and operations funding.”
From boondoggle to a taxpayer boon?
He tells us the solution might be to route money in the opposite direction:
“The BART to San Jose project and the Portal (the Caltrain extension to Salesforce Transit Center) should both be cancelled and the local funds now dedicated to these projects should be reallocated to support operations,” says Joffe.
To keep up with news on the SB 63 transit tax, follow Marc Joffe on X and subscribe to the CoCoTax newsletter here.
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