MTA Breakup in Valley Viable, Report Finds

The MTA could break off a piece of itself to operate transit in the San Fernando Valley and still remain viable, according to a report issued Tuesday by the state auditor’s office.

What’s more, the proposed Valley authority, which would take over about 20% of the Metropolitan Transportation Authority’s debt, could end up with a $38.6-million annual surplus, the report said.

In the state’s analysis, however, the Valley authority would not assume any debt from the almost $186-million financing of MTA’s Gateway Center headquarters because the building “is enjoyed mainly by the employees of the MTA.” The new agency would have its own employees.

State auditors also didn’t calculate the Valley authority’s share of MTA debt incurred from borrowing to pay workers’ compensation claims and lease buses. The Valley’s share, the report said, would have to negotiated with the MTA if the new agency is established.

The MTA, which lobbied heavily against a state Senate bill that would have established such a Valley agency, conceded that the report’s findings were reasonable, in a written response.