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BERKELEY -- A property tax initiative to bail out AC Transit was on the cusp of a remarkable victory tonight in a tight vote, with more than three-quarters of the ballots counted in Alameda and Contra Costa counties. Updated: Nov 6, 1:20 am
Since it concerns California property tax, the measure requires two-thirds -- 66.6 percent -- of the vote to pass. It had received 68.1 percent approval in Alameda County, with 78 percent of the county's 719 precincts reporting. In Contra Costa County, the initiative was favored by 65.9 percent, with 121 of 137 precincts counted.
All told, the measure received 107,365 votes for approval in both counties, or 68 percent, and 51,071 votes against, or 32 percent. Throughout the night, the percentage in favor continued to grow.
AC Transit officials have warned that unless the measure passes, the agency will be forced to cut back on service.
The measure was just one of many tax initiatives around the region that were in a tough fight for passage Tuesday night, and appeared to be one of few heading to victory.
"We've got a shot," said Jim Gleich, the AC Transit deputy general manager, in a telephone interview Tuesday night. "There is hope."
The Property Tax for Transportation, or Measure AA, would levy $24 per year on residential and business land parcels during the next five years. AC Transit estimates that the tax, if approved, could generate as much as $37.5 million, which the agency would use to keep services running as usual in the two counties.
AC Transit officials said that if the measure doesn't pass, the company will be $25 million to $30 million in deficit next year, forcing the agency to cut back on the least-used routes and bus service frequency. The agency's youth program, which provides free transit for low-income middle school and high school students, "would most likely be cut altogether," said Gleitch.
The agency's anticipated deficit is due to a downturn in the economy, said Gleich. He said that since 40 percent of the company's budget comes from sales tax, much of the agency's funds are connected to the economy, which recently has been in poor shape.
Voters interviewed today expressed a range of opinions about the measure. Tom De Simone, a 20 year-old University of California at Berkeley student and president of the Cal Berkeley Democrats, said he voted yes because he considers public transportation a social service that reduces traffic and helps people who don't have cars. But it's not just the environmentalists and the carless who win, he said.
"People who own homes should be happy," De Simone said. "Less cars means a cleaner environment, which means property values go up."
No formal opposition was organized against the measure. However, groups such as the Contra Costa Taxpayers Association urged their members to vote no. John Wolfe, the executive vice president of the association, doesn't think a slump in the economy justifies AC Transit's attempt to get property owners to cover its deficit. He criticizes the agency for not getting its income from more stable sources.
"I believe it's well-known that our economy runs in cycles," said Wolfe. "And they should take that into account when planning."
Partrick Rosenthol, a 33-year-old El Cerrito resident and Albany realtor, also planned to vote no on the measure before polls closed today. He thinks AC Transit should have prepared for the economic downturn. But the reality, Rosenthol said, is that "people who take the bus are going to continue to take the bus," whether or not the measure passes.
Emeryville resident Sylvia Scherzer, a retired Berkeley teacher and property owner of two houses in Alameda County, disagreed, saying she voted to approve the measure.
"People shouldn't be so narrow," she said. "We're all going to benefit. I'm for whatever will get people out of cars and into mass transportation."
Scherzer said she believes that buses are efficient, and that they help reduce traffic and air pollution. Scherzer also has a personal reason to support AC Transit: it allows her disabled son to travel independently around the city. The measure will help give people like her son the freedom to get from one place to another without depending on one person for a ride, she said.
AC Transit provides bus service to Alameda and Contra Costa counties, including the unincorporated areas of Ashland, Castro Valley, Cherryland, El Sobrante, Fairview, Kensington, Irvington, North Richmond, and San Lorenzo. On weekdays, AC Transit serves an average of 230,000 riders, of which 60,000 are school children and 14,000 are transbay commuters. If passed, the measure would restrict the tax money to bus operation and maintenance within Alameda and Contra Costa counties.
Property taxes are stable and predictable, and the measure is an AC Transit attempt to try to tap into a more secure funding source than sales taxes, at least temporarily.
"We are looking for one-time funding (to help defer any deficits over the next five years)," said Gleich. After that, AC Transit is banking on the economy improving in order to support its more than $224 million annual budget.