Exploring BART's Capital Budget

BART has two budgets: operating budget and capital budget.

Operating budget is the $ to run trains, hire cleaners and train operators, and just keep the lights on

Capital budget is the $ allocated to rebuild and maintain BART, such as tracks, equipment and fare gates https://t.co/szNZirJiQI

— BART (@SFBART) March 25, 2023

BART's operating budget is funded primarily through fares, parking, ads (aka operating revenue) plus sales tax, property tax and other financial assistance from local and state funds.

Before the pandemic, i.e. 2018, 69% of operating funds came from fares https://t.co/rr0INu2TDw

— BART (@SFBART) March 25, 2023

BART's capital budget is funded through voter-approved bonds and funds and grants from federal, state and local sources.

FY23 max capital budget of $1.49B:

45% voter-approved bonds (i.e. Measure RR from 2016)
45% federal funds/grants
4% state funds/grants
5% local funds/grants

— BART (@SFBART) March 25, 2023

For example, BART received a $250 million grant from the state of California in January -- but this money is earmarked for a capital project to improve infrastructure to increase the maximum # of trains which can run through the Transbay Tube https://t.co/BQ9vaIUTjn

— BART (@SFBART) March 25, 2023

Capital projects like the fare gate replacement, announced yesterday, are largely paid for by specific pots of money awarded to BART (or approved by voters) from local, state, and federal sources.

— BART (@SFBART) March 25, 2023

Operating funds are used to hire cleaners and train operators. And we have been recruiting heavily to fill our labor shortages for these critical positions.

Cleaners have met near-full staffing levels for the first time since the pandemic https://t.co/olupsZultW

— BART (@SFBART) March 25, 2023

Train operators are critical to ensure we reduce the number of cancelled trains.

We are on pace to reach full-staffing for train operators this year.

We are working to improving reliability and reduce cancelled trains right now.https://t.co/jO05Ulru7h

— BART (@SFBART) March 25, 2023

BART historically has been heavily reliant on passenger fares for its operating funds. With the slow ridership recovery, we are indeed facing a fiscal cliff estimated in 2025 when our one-time federal operating funds run out.

Capital funding is unimpacted by ridership.

— BART (@SFBART) March 25, 2023

It is not allowed for BART and other public transit agencies to pool capital funds, usually earmarked for specific projects, into operating funds.

We have heard murmurs at the federal level to allow this. But at this moment, capital $ -> operating $ is not allowed.

— BART (@SFBART) March 25, 2023

So, yes, BART is in a strange place where we are able to continue our track rebuilding work and other infrastructural improvements thanks to a current robust capital budget -- while being short-strapped on the operating budget with a fiscal cliff possibility.

— BART (@SFBART) March 25, 2023