SANTA CLARA VTA RIDERS UNION P. O. Box 390069 Mountain View, CA 94039-0069 http://www.vtaridersunion.org/ NEWS RELEASE TO: Editor, News Assignment Desk, Transportation Reporter * FOR IMMEDIATE RELEASE * Press Contacts (in alphabetical order): Eugene Bradley 24 hr. cell/pager (408)888-2208 Stuart Cohen cell (510) 543-7419 work (510)740-3150 SOUTH BAY TRANSIT WATCHDOG GROUP FOUNDER SENDS REPORT ON SAN JOSE BART EXTENSION COST OVERRUNS TO U.S. CONGRESS AND SENATORS BART To San Jose's $2 Billion Overruns Threaten South Bay Transit SUNNYVALE, CA (July 22, 2003) – The Santa Clara VTA Riders Union (SCVTARU – www.vtaridersunion.org), a transit advocacy and watchdog group for the South Bay, announces that its founder, Eugene Bradley, has sent a letter of concern and a report to the United States House of Representatives' House Appropriations Committee and the United States Senate's Environment and Public Works Committee. The letter – which can be found on our web site at the “Letter From Our Founder to Congress” link – expresses concern with cost overruns with the San Jose BART extension that have not been addressed to federal officials nor to the voting public, and how it has already affected transit service in the South Bay. The 29-page report, "Transportation Injustice," prepared by our sister organization, the Transportation and Land Use Coalition (TALC – www.transcoalition.org), details the cost overruns with the San Jose BART extension and highlights solutions to ensure BART goes into San Jose without sacrificing Santa Clara County's core bus and light rail services. San Jose Mayor Ron Gonzales and Carl Guardino, CEO of the Silicon Valley Manufacturing Group (SVMG), have been making trips to Washington, DC to lobby for $494 million to $894 million in federal funding for the San Jose BART Extension. Specifically, they are lobbying to have the BART Extension included as part of the reauthorization of the Transportation Equity Act For the 21st Century (TEA-21) due for vote in the U.S. Senate in the next few months. Sources revealed to Mr. Bradley revealed, however, that neither Mr. Gonzales nor Mr. Guardino mentioned cost overruns of the San Jose BART extension to the members of the House Appropriations Committee. These cost overruns currently total $2 billion more than the $3.8 billion both gentlemen and the Santa Clara Valley Transportation Authority (VTA) stated the San Jose BART extension will cost Santa Clara County taxpayers. Worse, neither gentleman nor the VTA have yet to publicly disclosed the cost overruns of the San Jose BART extension. "It is this kind of non-disclosure to the voting public – especially during a budget crisis at all levels of government - that creates cynicism and ultimately mistrust in government," said SCVTARU founder and CEO Eugene Bradley. The report “Transportation Injustice,” prepared by TALC, details the cost overruns to the San Jose BART extension, as well as its impact on Santa Clara County's bus and light rail services. The report notes how the VTA failed to account for over $700 million in bond financing for the San Jose BART extension in 2001. The report also mentions how VTA underestimated the subsidy needed to run the San Jose BART extension. When negotiations with BART for the extension ended in 2001, VTA had to pay $48 million per year for the operating subsidy – twice what they originally budgeted. That subsidy would increase to $73 million per year when Measure A – also known as the “BART Tax” - expires in 2036. VTA also failed to account for capital costs for the San Jose BART extension back in 2001. The cost of the extension rose to $4.3 billion - $500 million more than what VTA and the SVMG claimed the extension would cost. These cost overruns to the San Jose BART extension, combined with the impact of the continuing economic recession, are why VTA faces a $50 million deficit this fiscal year, and a $6 billion shortfall over the next 20 years. The shortfall has resulted in three rounds of service cuts since November 2000, and as of August 1, three fare increases. Clearly, this is not what voters approved in November 2000 when they voted for more bus and light rail service in addition to the San Jose BART extension. The rest of the report – and solutions to the issue – can be viewed at either www.vtaridersunion.org/regional or at www.transcoalition.org and clicking on the "Transportation Injustice" link. (The report requires the Adobe Acrobat reader for viewing.) SCVTARU agrees with many of the solutions featured in the report. Specifically, we agree with TALC's solution using bonds against 2000 Measure A funding to prevent up to 21% service cuts in January 2004 should a County Superior Court judge approve the bonding. For the sake of the public trust and transit riders in Silicon Valley, SCVTARU formally calls upon the VTA and the SVMG to publicly disclose all cost overruns of the San Jose BART extension – and their impact on transit service - NOW. We also call upon the VTA – and Mayor Gonzales – to publicly release information on how much money can be saved by phasing in or delaying the BART extension. SCVTARU also calls upon the VTA's Board of Directors vote on delaying or phasing in the San Jose BART extension to save revenue in the long term, as soon as possible. Finally, Mr. Bradley calls upon the Federal Transit Administration (FTA) to reevaluate the San Jose BART extension as part of TEA-21 reauthorization to allow decision makers to fully address its impacts on local transit service. ### About the Santa Clara VTA Riders Union -------------------------------------- Founded in October 2000 by Eugene Bradley, the Santa Clara VTA Riders Union is a grassroots-based organization dedicated to ensuring that elected officials improve and implement cost-effective, frequent, and reliable mass transit in Santa Clara County. Our web site is at www.vtaridersunion.org. We are based in Sunnyvale, CA. Our organization has absolutely no affiliation with, nor is endorsed by, the Santa Clara Valley Transportation Authority (VTA) in any way whatsoever. About the Transportation and Land Use Coalition ----------------------------------------------- Formerly known as the Bay Area Transportation and Land Use Coalition (BATLUC), the Transportation and Land Use Coalition is a ground-breaking partnership of more than 90 organizations working to maintain the region’s renowned high quality of life, achieve greater social equity, and protect our natural environment. We are based in Oakland, CA and our web site is at www.transcoalition.org.