First Blow to Transit Funds Diversion

In a party-line vote, Senate Democrats rejected Arnold's proposal to divert $1.3 billion in public transportation funding. The issue was heard in a Senate subcommittee and is just the first in a series of votes the more controversial pieces of the governor's budget will face. Chron:

Transportation officials and environmental groups have argued that the money should go toward projects to increase bus and rail service that also will help the state's efforts to reduce greenhouse gas emissions by decreasing the number of cars on the road. Bay Area agencies have complained that riders are getting shorted by the governor's plan. Golden Gate Transit, for instance, had planned to use some of the money to help refurbish a berth at the San Francisco Ferry Building. And BART had hoped to use the state money to hire more police officers and boost service on nights and weekends.

Arnold had wanted the money to go to early payments on the transportation bonds and to switch responsibility for school bus funding. The issue now moves on to a conference committee, which will tackle "the most controversial issues in the budget."