Page 459 - 2022-23 Blue Book Vol 2

PROPOSITION A LOCAL TRANSIT ASSISTANCE FUND

BASIS FOR THE PROPOSED BUDGET
The 2022-23 Proposed Budget for the Proposition A Local Transit Assistance (Proposition A) Fund relates to current
year funding as follows:

Amount % Change

2021-2022 Adopted Budget $ 296,185,510

2022-23 Proposed Budget $ 297,689,848

Change from 2021-22 Budget $ 1,504,338 0.51%

Approved by the voters in November 1980, Proposition A imposes a one-half cent sales tax for the planning,
administration, and operation of public transportation programs. Proposition A funds are distributed Countywide as
follows: 40 percent for discretionary and incentive projects, 35 percent for rail transit, and 25 percent for local return.
Local Return revenue is allocated to cities based on population. Proposed appropriations comply with the Proposition A
Local Return Program Guidelines adopted by the Metropolitan Transportation Authority (Metro), which administers this
Program.

BUDGET HIGHLIGHTS
 Funding for Transit Operations consolidates appropriations for Commuter Express, DASH, and Cityride transit
and includes partial funding for various proposed transit options. The 2022-23 increases in Cityride/Dial A Ride
costs are included.

 A Transit Services Analysis (TSA) Study was completed and approved by the Mayor and Council in October
2018. Consistent with the findings of that study, the Proposition A Fund is now experiencing some fiscal
stress. The 2021-22 Adopted Budget had a reserve of $65.6 million. The Proposed 2022-23 Budget has a
projected reserve of $5.8 million (3.3 percent of projected receipts).

 In 2021-22, the Mayor and Council instructed the completion of a new Transit Service Analysis. Completion of
a new TSA during the summer of 2022 will be critical to ensure the ongoing fiscal health of the Proposition A
Fund into 2022-23 and beyond.

 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.

 Farebox revenue was projected at $12 million in the 2021-22 Adopted Budget but is only projected to reach
$545,000 due to the impact of the coronavirus pandemic. Due to the uncertain nature of the pandemic and
policy discussions on going fare free, the Proposed 2022-23 Budget only assumes current level farebox
revenue of $545,000.

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