Published Thursday, November 8, 2001, by San Jose Business Journal

Breaking News

Higher taxes may be needed for San Jose BART line

San Jose Mayor Ron Gonzales says it would be a last resort but he's
not ruling out the need for higher taxes to pay for operating the
$3.7 billion 21-mile extension of BART into San Jose from Fremont.

Negotiators for BART and the Santa Clara County Valley Transportation
Authority this week reached tentative agreement for the extension.
The terms call for VTA to pay $48 million a year to BART to cover
operational costs.

Not all of that would be a cash payment; a portion would be offset by
in-county ticket sales, according to a VTA spokesman.

A year ago Santa Clara County voters overwhelmingly okayed a half-
cent increase in the local sales tax to help pay for the extension of
the rapid transit system as well as other transportation projects.

But the Bay Area Transportation and Land Use Coalition, a transit
advocacy group, warns that VTA might have to cut money now used for
its bus and light rail operations to make the BART payments.

"This very expensive project will likely result in severe cuts to
transit service for the people who need it most," the group predicts.

Mayor Gonzales says VTA expects it will be able to cover the annual
payment without using the money now allocated to light rail and bus
service.

The VTA board votes on the agreement at a meeting tomorrow. The BART
board votes on it next week. If approved by both boards it will go to
the regional transit agency and eventually be used in seeking federal
money to begin construction.