Temptation and Big Pots of Money : Diversion of transportation funds could prove shortsighted

The fiscal troubles of Los Angeles and Orange counties, and the political imperative of doing something about them in Sacramento, prompted the Legislature over the weekend to hasten approval of a huge transfer in transportation tax revenue.

The big pots of transportation money are tempting, and the delivery of $75 million annually to Los Angeles County and $70 million to Orange County would be welcome, of course. L.A. County, with a $1.2-billion deficit, is facing dire cuts in services and Orange County is in bankruptcy.

But the Legislature’s action, which authorized the transfer of a quarter-cent from the sales tax that now pays for bus service, was hasty and has the earmarks of a political quick fix. It also raised larger questions about meeting commitments to the mass transportation needs of Southern California. The Orange County Transportation Agency might be able to find revenue to protect bus service, but that is yet to be determined. If it cannot, the diverted money might be lost for worthy transportation projects.

The Legislature’s new action also faces uncertainty at the governor’s desk on other grounds--its connection to a follow-up bill that would authorize the appointment of a state trustee for Orange County. Wilson previously vetoed separate legislation to appoint a trustee but hasn’t ruled one out.

It is possible that to keep buses running in Orange County, diverting money for bankruptcy-related debts might even mean mining a transportation sales tax passed in 1990. At this point it’s not really clear. Such a transfer could pose legal obstacles and take money approved by voters who were fed up with some of the worst traffic in the state. Having limited its recovery options by rejecting a sales tax in the June election, the county hopes it can find extra cash lying around, but it may have to find the revenue through some combination of new fees and budget cuts that will not retreat on prior obligations.

Los Angeles, facing an immediate crisis, naturally is tempted to take money from the unpopular Metropolitan Transportation Authority in order to temporarily stave off hospital closures and other Draconian cuts. That’s why the Board of Supervisors last week endorsed the $75-million raid on the MTA. That strategy would yield some short-term relief, but it does nothing to address L.A. County’s fundamental structural bind: too much demand, not enough revenue. The hastily drawn proposal leaves a lot of unanswered questions.

Public transportation funds are related to quality of life, and to economic well-being. Those monies, while attractive for the numbers crunchers, shouldn’t be taken without full consideration of the consequences.