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Budget setbacks have ESTA running on fumes |
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Saturday, 16 August 2008 |
 Public transportation is considered a vital resource in the sparsely populated Owens Valley, particularly by those who have no other means of getting around. The Eastern Sierra Transit Authority is in dire financial straits this summer due to state budget woes and rising energy costs and is asking local government for help. Photo by Mike Bodine By Mike Bodine
Register Staff 8-14-2008
Public transportation in the Eastern Sierra is in peril. With a predicted 59 percent funding cut from the state, the Eastern Sierra Transit Authority, ESTA, is reportedly having trouble just trying to make payroll. This is on top of the unrelated reduction in services that went into affect in June, due to increased operating costs, like the price of gas.
There will also be a fare increase averaging 20 percent effective Sept. 1 and possible further reductions in service and other modifications to reduce expenses and increase efficiency.
ESTA is asking its member agencies, Mono County, Inyo County, the Town of Mammoth Lakes and the City of Bishop, to establish a “short-term line of credit” to help ESTA meet immediate operating costs during the state budget impasse and subsequent delay of financing. The line of credit requested is $325,000, roughly the amount given quarterly by the state, according to ESTA Executive Director John Helm. One-hundred-thousand dollars is being requested from the City of Bishop.
Helm said that the number came from the Aug. 7 ESTA meeting in which board members decided to make requests from their respective agencies at future meetings. ESTA representatives from the Inyo County Board Supervisors said that they were not planning to request a line of credit from the county, saying they were not sure if the other supervisors would support the request, according to Helm. So, the request was split between the three member agencies that would be asked for support. The Town of Mammoth Lakes was asked for $125,000 and $100,000 each was requested from the City of Bishop and Mono County.
The first move by ESTA to request the line of credit was at the Monday, Aug. 11, meeting of the Bishop City Council. During a report presented by ESTA representative and City Council member Jeff Griffiths, the City Council was briefed about the transit service’s grave financial state. Griffiths noted the state budget woes as well as the revenue reduction of 59 percent from the California State Transit Authority, or STA.
“Being a short-lived entity, the agency does not have the reserves to weather this kind of set back,” Griffiths said of ESTA, which celebrated its first anniversary July 1.
He asked the council to review a request for a short-term line of credit, or revolving loan account for $100,000 that would be paid back with interest, to help ESTA make payroll. The $100,000 is the City of Bishop’s portion of the $325,000 being requested from all four member agencies. This in spite of the “long-term structural problems” the agency may encounter with future state budget cuts and rising energy costs.
City Administrator Rick Pucci said the city had received no formal request from ESTA. Pucci said he wanted to hear from all the other member agencies to see who was willing to participate. He explained his concerns that if one of the other member agencies decides it does not want to participate, the balance of the requested line of credit would be asked of the remaining members agencies.
The request for $100,000 is not an equal amount split among four entities, Pucci explained; $325,000 between the four member agencies is roughly $81,000 each.
Pucci said he was also cautious about this line of credit, because it would be a non-collateralized loan, meaning if ESTA were to go under there could be difficulty in getting any of the loan back.
“As one member of the ESTA board I will make sure ESTA doesn’t go bankrupt,” Griffiths countered.
Councilmember Bruce Dishion said he’d be happy to help them this one time, once a formal request has been made, but was also concerned whether this line of credit would do the trick.
Griffiths said that if ESTA comes back with requests a second or third time, they’ll know the loan wasn’t very effective.
These loans are a way for ESTA to make it through the state budget crisis, then when ESTA funds are more solid, money will be paid back to member agencies with interest, Helm explained by phone Wednesday.
In addition to asking for the line of credit and increasing fares, the ESTA board is also considering further expense reductions such as subleasing part of the CREST station, reducing Bishop Dial-A-Ride by 1-8 hours a day, and using a dispatcher to operate a second vehicle for the Dial-A-Ride service during peak periods in Mammoth.
ESTA will also request reserve funds from Inyo County ($100,000) and Mono County ($50,000) to be allocated to the Local Transportation Commissions to allow ESTA to minimize reductions to service while additional funding sources are pursued.
There are many sources for additional revenue, but none are certain. It is possible the state budget will increase transit funding, although unlikely. There are several grants available; some offset the spike in fuel prices, some will directly support the CREST route specifically and others could help with coordination efforts in the region.
“A lot of people depend on this public transportation, it is their life-line, many have hung up their keys for the last time. I am personally dedicated to maintaining a level of service for the core clientele,” Griffths said.
Council members agreed not to take any action until a formal request from ESTA had been received and the views of the other member agencies had been voiced.
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Last Updated ( Saturday, 13 September 2008 )
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