Ride-Share Funding Request Questioned

Orange County put a halt to giving extra ride-share money to the Southern California Assn. of Governments until the regional planning agency documents that it is financially stable.

Six Southern California counties pay SCAG to promote ride-sharing, the use of fuel-efficient buses and other ways to keep air clean in the region.

The Orange County Transportation Authority had been asked to pay $72,000 in ride-share costs above the $450,000 budgeted for this year, in order to pay for “higher staffing and support costs.” But SCAG, responsible for transportation planning for 16 million residents in Orange, Los Angeles, Riverside, San Bernardino, Ventura, Riverside and Imperial counties, has been under scrutiny since October, when an examination turned up widespread financial, accounting and contracting problems.

“I’m not voting to give SCAG one dime more until I know they have a strategic financial plan in place that has been approved by their board,” said board member Todd Spitzer, an Orange County supervisor. “I need to know that we aren’t just stopping the bleeding for them on a temporary basis.”

Spitzer said he was concerned that SCAG is turning to local agencies to make up a multimillion-dollar budget shortfall, instead of tightening its own belt.

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Mark Pisano, SCAG’s executive director, said his agency is addressing such concerns and plans to take a new financial strategy to its board April 7. Pisano said the additional funds requested for the ride-share program are needed for expanded services, not to make up other budget shortfalls.

Still, he said he’s not surprised the issue was raised.

“I never question when someone feels they need more budget information,” Pisano said. “When there are questions, you need to provide answers on budgets.”

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A team of finance experts culled from member agencies did a comprehensive review of SCAG finances and management practices, making about 200 recommendations for change, Pisano said. Most significantly, he said the agency has moved to dramatically reduce its reimbursement turnaround time on projects it is billing to other organizations.

On the ride-share issue, Orange County transit planners had suggested the agency hold firm to the $900,000 already committed over the next two fiscal years, despite the willingness of other regional agencies to approve the increase.

A staff report on the matter says OCTA staff recommended SCAG make up the difference by using carry-over funds from previous years and implementing “a reduction to SCAG’s overhead rate.”