Regional Alliance For Transit
1000 Union Street, Suite 206
San Francisco, California 94133
June 4, 2010
Senator Christine Kehoe, Chair
Senate Appropriations Committee
State Capitol, Room 2206
Sacramento, California 94249
Re: AB 744 (Torrico) OPPOSE
Dear Senator Kehoe:
The Regional Alliance For Transit wrote to the Appropriations Committee
on January 26, 2010 in opposition to AB 744. Our group continues to
oppose the bill.
Since our January letter, the Metropolitan Transportation Commission
has released its 2009 Comprehensive Annual Financial Report. The
interest rate swap strategy’s effect has continued to worsen, with the
termination cost increasing from $158 million to $399 million.
Additional swaps with a notional value of $556 million have been
entered into in an attempt to net out several previously existing
swaps. The estimated termination cost on these is $11 million, bringing
the total termination value of all of the swaps to $411 million—not in
MTC’s favor. The relevant page from the CAFR is enclosed with this
As noted earlier, a review by the state of the stewardship of toll
bridge revenues managed by MTC/BATA is worth consideration before
granting any new powers to it. Drivers crossing the state–owned toll
bridges are paying millions of dollars to cover swap charges resulting
from BATA’s poor financial decisions. This is not a short–term problem,
either, as several of the swaps are in effect until 2047.
A copy of our January letter also is enclosed with this letter.
cc: Assemblymember Torrico