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Assembly approves AB 117, allowing MTC to borrow up to $590 million to cover Bay Area transit operating costs
Summary
AB 117 passed the Assembly 52–16 after heated debate. The bill permits the Metropolitan Transportation Commission to borrow up to $590 million from funds awarded for transit capital to cover operating costs for BART, SF Muni, AC Transit and Caltrain; supporters call it a bridge to sustain service, critics call it a bailout lacking accountability.
Assemblymember Gabriel presented AB 117 as a budget trailer provision allowing the Metropolitan Transportation Commission (MTC) to borrow up to $590 million from state‑awarded funds (intended for transit capital) to support transit operations for agencies including BART, SF Muni, AC Transit and Caltrain. Gabriel emphasized there would be no net state cost because the loan would be repaid from the same awarded funds over time.
Debate was sharply divided. Assemblymember Tangipa called the measure a "payday loan for BART," arguing BART lacks a credible plan to repay the loan and that Bay Area riders and taxpayers should not be asked to cover the shortfall. Assemblymember Davies and others raised concerns about suspended performance metrics, workforce growth while ridership fell, and the need for accountability language. Supporters, including Assemblymember Arons and Assemblymember Lee, characterized the measure as a necessary bridge to preserve essential transit service for transit‑dependent riders and to protect long‑term projects such as BART Phase 2 to Silicon Valley.
After closing remarks, the Assembly recorded a roll call: Ayes 52, Noes 16. The measure passed and Senate amendments were concurred in; the bill will be transmitted to the Governor.
Why it matters: supporters say the loan preserves transit operations and prevents service cuts that would harm riders who rely on transit; opponents say it reallocates capital funding for operations without sufficient repayment or performance safeguards.
Next steps: AB 117 passed the Assembly and will be sent to the Governor for signature or veto; oversight and repayment mechanics will be matters for the implementing agencies and state finance officials.
