Date: Wed, 23 Jun 2004 16:40:21 -0000
========== REPORT ==========


2003-2004 SANTA CLARA COUNTY CIVIL GRAND JURY
INQUIRY INTO THE BOARD STRUCTURE AND FINANCIAL MANAGEMENT OF THE
VALLEY TRANSPORTATION AUTHORITY

Summary

The Valley Transportation Authority (VTA) faces significant financial
challenges. Some are outside of the control of the VTA Board (Board),
such as the recent short-term shortfalls of sales tax revenue due to
the economic downturn and a less-than-efficient public transportation
system due to widely dispersed housing and centers of commerce. Other
challenges are the result of decisions made or accepted by the Board,
some as a consequence of the structure of the Board itself. These
include: low recovery of transit costs from fares; high employee
costs per service rendered; over-promising of programs to voters;
inefficient timing of expenditures; financial forecasts designed to
support program plans rather than evaluate options (and as a
consequence not identifying more optimal approaches); and decisions
influenced by benefits to local districts rather than to the regional
Santa Clara County (County) transportation system. The Grand Jury
recommends changes in the size and composition of the Board to
provide better governance of VTA finances in the future.

The overriding financial problem facing VTA at present is that it
cannot afford the cost to build and operate a BART system to San
Jose. Spending limited resources on BART could squander an
opportunity to build, maintain, and operate a far larger network of
transit options throughout the county as enabled by voters approving
the þÿ