Fleischman: Afternoon Hot Take: Is Bay Area Public Transit In A Death Spiral?

In the term run, this is very good news.  Yes, it will take a few more years to completely shut down the money sucking, dirty, diseased and crime ridden government transportation systems.  Next year the Bay Area will have some bond measures to save the unions controlled, corporate systems.  Vote them down, start the process of saving money, saving the environment, ending the union and corporate payoffs.

“The Bay Area’s transit systems are hurtling toward financial collapse. Agencies like BART, Muni, and Caltrain project deficits of $500–$800 million annually by 2026, which threatens severe cuts, including reduced BART service to every 60 minutes, no weekend service, and fewer bus routes. A contemplated 2026 ballot measure, the Connect Bay Area Act, looks to ask voters to kick in more of their money — $440–$550 million annually in higher sales taxes. According to an article in Politico today. The article warns, “The Bay Area’s big transit systems are threatening a death spiral.” However, new taxes without reform.

Say NO to these massive boondoggles.  Use your power of the vote.

Afternoon Hot Take: Is Bay Area Public Transit In A Death Spiral?

Progressive policies emanating from the State Capitol and Bay Area cities render these systems unsustainable without massive public subsidies.

Jon Fleischman, Flashreport/substact.  5/13/25   https://theflashreport.substack.com/p/afternoon-hot-take-is-bay-area-public?utm_source=post-email-title&publication_id=4841705&post_id=163497696&utm_campaign=email-post-title&isFreemail=true&r=x9o3&triedRedirect=true&utm_medium=email

The Bay Area’s transit systems are hurtling toward financial collapse. Agencies like BART, Muni, and Caltrain project deficits of $500–$800 million annually by 2026, which threatens severe cuts, including reduced BART service to every 60 minutes, no weekend service, and fewer bus routes. A contemplated 2026 ballot measure, the Connect Bay Area Act, looks to ask voters to kick in more of their money — $440–$550 million annually in higher sales taxes. According to an article in Politico today. The article warns, “The Bay Area’s big transit systems are threatening a death spiral.” However, new taxes without reform.

A Regional Failure to Adapt

Ridership, which is 79% of pre-pandemic levels, defies the agencies’ inability to rein in. The fares paid by riders cover only 11% of BART expenses, and riders must endure an irregular and often unsafe system. Union-scented labor expenses—pensionable pay, pensions, and overtime—absorb budgets. BART’s blocking of its inspector general is a defiance of oversight. The cost-generating impact of mandates on improvements and projects, such as the $13 billion BART extension to San Jose, encourages flashy schemes at the expense of frugality in appropriations.

Reflections of Urban Public Transit Distress

This crisis is reflected elsewhere. Boston’s MBTA also has a $700 million gap, with its proposed 2026 budget proposing a 7% increase in spending. Raises in fares won’t cover the gap, and precarious state financing hangs over reduced service. Chicago’s CTA is staring into a $770 million fiscal hole, potentially shuttering four out of eight rail lines and 74 out of 127 buses without state relief.

Is Urban Transit Worth Saving?

There is value in urban transit systems, offering alternatives to car travel, easing congestion, and providing mobility to those who don’t have cars. However, the current model—fares that cover little—is not sustainable. Remote work altered commuting, yet agencies cling to old systems. A 2025 Pew poll reveals that 28% of Americans anticipate their finances will suffer over the next year, an increase from 16% in 2024, with Democrats being especially gloomy, at 47%. During lean economic times, will voters—most of whom ride transit infrequently—oppose increased taxes to rescue failing systems? Transit continues to be a fiscal sink without reforms such as increased fares, more efficient operations, or privatization. A sound, effective system is worth preserving, but not by saddling taxpayers with increasingly large subsidies.

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