The original suit was filed after $1.19 billion was taken from the Public Transportation Account (PTA) to close a budget gap during 2007-08. The suit argued that the taking of the funds was unconstitutional and violated a number of voter enacted measures including Prop 116 and Prop 1A. The suit also argued that the PTA was a trust fund for mass transit money and, as a result, the money could only be spent on mass transit.
The State countered saying that they were spending the money on transit, just different forms of transit like repayment of Prop 42 loans and Prop 116 bond debt service. The Appellate Court denied the argument and ruled that the takings were unconstitutional. In response, the State appealed to the State Supreme Court, which denied the appeal on September 30. (If you want more detailed information on this case which is reliable and readable, California Transit Association has information on their site.)
What does this mean for transit riders and OCTA? This ruling opens up possibilities of money trickling back sometime in the future, but not immediately. In a big case like this, there will be other moves, both legal and legislative, to keep the money in the State's bank account and not released to transit agencies. If you have ever won a judgment in court, you find out getting the judgment is only the first battle. Actually collecting the money is the second battle, and often takes you back to court again.
Then, when the money does start coming back, there is the question of how much and how it will be divided. OCTA could see some funds coming their way, but it's too early to tell when and how much.
In the meantime, OCTA still needs to figure out how to keep a workable bus system in Orange County. There is a possibility that other funding sources could be tapped or could "loan money" to the bus system for a few years to get over the current crisis. There is still the shrinking sales tax revenue problem to deal with. Other transit funds have been raided or cut since the taking of funds which led to the court case. There are multiple funding issues to be understood and dealt with.
OCTA, like all other transit agencies in the state, has to figure out how to maintain service with a diminishing budget. The Supreme Court action is a step in the right direction and does bring hope to the rather difficult bus transit situation in the area.
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