Tehama County panel reprograms SB 125 funds to shore up transit operations amid $1.3M shortfall

The Tehama County Transportation Commission on a voice vote adopted a resolution to amend its SB 125 program allocation, shifting part of a previously capital‑focused block of state funds into transit operations to address a projected $1.3 million operating shortfall in fiscal year 2026.

The amendment, moved by Commissioner Hansen and seconded by Commissioner Walker, authorizes staff to submit an updated program to the California State Transportation Agency (CalSTA). Staff said the change reallocates some formula funds that were originally programmed entirely for zero‑emission fleet and facility conversion so the county can “maintain services, at the current level” after CARES, CRRSSA and ARPA funding were exhausted.

Why it matters: Staff said COVID‑era and other one‑time grants that previously covered operating costs have run out, creating a recurring gap. The amendment is intended as a multi‑year adjustment—moving funds year over year across the next four years—so agencies can sustain service while continuing to pursue competitive capital grants for electrification and facility work.

Staff presentation and discussion: A staff member told the commission the SB 125 formula allocation was originally placed in zero‑emission planning, fleet conversion and facility electrification, but that the county now faces persisting operating shortfalls. Staff identified an FY2026 gap of about $1,300,000 and said the county had already shifted roughly $600,000 per year of State Transit Assistance toward operations in an earlier step. The staff member said the amendment will not exhaust competitive SB 125 opportunities: “This is just the formula chunk that came to Tehama County originally when the program adopted SB125… competitive funds are still available under this program,” the staff member said.

Commissioners asked about alternatives including restoring fares; staff estimated farebox revenue at about $100,000 per year and said fare reinstatement could be considered in the next fiscal year but would not fully close the shortfall.

Vote and next steps: The commission adopted resolution number 22026 and separately authorized the deputy director to process and submit required documentation to CalSTA and other agencies to implement the amendment. Staff will prepare the updated program submission and continue to seek competitive capital grants to support future electrification and facility work.

Implementation note: The amendment reprograms the SB125 formula funds only; staff emphasized that competitive program components remain available for capital projects and that the county intends to continue pursuing those funds.