Transportation costs place a disproportionate financial burden on low-income households. Families in the lowest income quintile spend roughly 32 percent of their household income on transportation, which combined with housing costs, can consume nearly all their available budget. Transit affordability is typically addressed by providing discounted public transit fares. But transit alone cannot meet every trip need, and without access to a car or other affordable alternatives low-income travelers may forgo trips — reducing social connections, limiting employment opportunities, and eroding their well-being.
Public transit systems in California sit at a financial crossroads. Ridership has recovered slowly and unevenly since the pandemic, with commuter-focused transit services to and from downtowns continuing to struggle the most. While other sources of transit funding such as sales taxes have recovered, fare revenues have not. As one-time federal relief funding is spent down, some transit agencies in California and across the U.S. sit at the edge of a fiscal cliff. To better understand the scale of this challenge and how agencies are responding, researchers at the UC Institute of Transportation Studies analyzed financial data from transit agencies, examined federal databases, and conducted surveys and interviews with agency staff. This work provides a clearer picture of current conditions and the strategies agencies are considering to stabilize their budgets.
“Major transit stop”—how these three words are defined determines what can be built where, throughout much of California. To address housing shortages and reduce reliance on driving, California has enacted a number of laws that streamline housing approvals and remove zoning constraints in areas near high-quality transit. Many of these laws allow for greater density, less parking, and faster permitting within half a mile of a “major transit stop,” defined in California Public Resources Code § 21064.3 as “an existing rail or bus rapid transit station, a ferry terminal served by either a bus or rail transit service,” or “the intersection of two or more major bus routes with a frequency of service interval of 20 minutes or less during the morning and afternoon peak commute periods.” In some cases, planned future transit stops included in long-range regional transportation plans may also qualify.
