Page 413 - FY 2021-22 Blue Book Volume 2

PROPOSITION A LOCAL TRANSIT ASSISTANCE FUND

BASIS FOR THE PROPOSED BUDGET

The 2021-22 Proposed Budget for the Proposition A Local Transit Assistance (Proposition A) Fund relates to the
current year funding as follows:

Amount % Change

2020-21 Adopted Budget $ 241,562,122

2021-22 Proposed Budget $ 296,185,510

Change from 2020-21 Budget $ 54,623,388 22.6%

Approved by the voters in November 1980, the Proposition A Fund revenue is allocated by the County of Los
Angeles based on population and provides for the use of the one-half cent sales tax revenues for the planning,
administration, and operation of Citywide public transportation programs. Proposed appropriations comply with the
Proposition A Local Return Program Guidelines adopted by the Los Angeles County Metropolitan Transportation
Authority (Metro), which administers this Program. The Metro-approved guidelines for Proposition A funds reflect a
distribution of funding as follows: 40 percent for discretionary and incentive projects, 35 percent for rail transit, and
25 percent for local jurisdictions. The City appropriates its portion of the local return as described below.

BUDGET HIGHLIGHTS

• Funding for Transit Operations consolidates appropriations for Commuter Express, DASH, and Cityride
transit and includes partial funding for various proposed transit options.

• A Transit Services Analysis (TSA) Study was completed and approved by the Mayor and Council in October
2018. A number of funding recommendations from the TSA Study are incorporated into the 2021-22
Proposed Budget. Ongoing funding for multi-phased projects will require additional policy discussion and
are subject to further approval by the Mayor and Council.

• Funding is provided to leverage grant funding to support the purchase of electric buses and facility upgrades
at the transit yards.

• Funding is provided for the City’s 2021-22 payment of the City Three Percent Measure R Match contribution
for Metro projects in the City of Los Angeles. The 15-year funding agreement with Metro (C.F. 13-0337)
approved on April 23, 2014, instructs the City to ensure that future City budgets include these payments.

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