Feds Owe California Mass Transit Agencies $2 Billion

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(Sacramento, CA)
Tuesday, August 13, 2013

Sacramento Regional Transit says the federal government is holding back $60 million in owed matching funds and the amount could more than double by the end of the year. 

Two billion dollars have already been delayed statewide since California’s new pension reform law took effect in January.   

“It’s Governor Brown’s effort to bring in line public employee pensions –make them more sustainable," says Elk Grove City Councilman Pat Hume.  He chairs the Sacramento RT Board of Directors. "That is apparently at the state level in conflict with the federal level Department of Labor, which safeguards the bargaining power for transit unions.”

Hume says the board voted Monday night to borrow $5 million from its reserve to help pay bills. 

Several unions have filed grievances with the federal government. 

A bill that would exempt 20,000 California transportation workers from the state’s new pension rules stalled at the State Capitol earlier this year.

A decision on money owed to the Los Angeles County Metropolitan Transportation Authority could come as soon as this week.

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