Report: Bay Area Overspends On Transit

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    NEWSLETTERS

    TK
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    A symbolic start, but a start nonetheless on a five year plan to connect San Jose via BART.

    A new report finds Bay Area transit agencies are spending way too much on administrative costs when compared to other large cities in the nation.

    A report published in the San Francisco Examiner says if some of the region's 28 transit operators merged functions, they could save $2 billion collectively.

    The report was put together by the Metropolitan Transportation Commission. It finds that local transit agencies spend nearly 20% of their budgets on administrative functions, while the average large city spends just 15%.

    Slashing that 5% could make a huge difference to transit agencies that are doing everything they can to make ends meet.

    The MTC believes many of the agencies are duplicating administrative costs. Merging things like maintenance yards, grant and planning offices, marketing teams and purchasing offices could do away with some of those duplications.