Six-hundred million dollar bridge loan for Bay Area transit agencies

Governor Gavin Newsom announced that state and local officials have agreed to make a nearly $600 million bridge loan to prop up Bay Area transit agencies until voters decide in November on a sales tax to bolster the system.

The Metropolitan Transportation Authority said in a statement that without the loan, the system could face a deficit of about $800 million the next fiscal year.

The move staves off possible cuts in service to BART, AC Transit, Caltrain and Muni.A regional initiative will appear on the ballot in Alameda, Contra Costa, San Francisco, Santa Clara and San Mateo counties.

If it qualifies for the ballot and is approved by voters, the tax measure would allow increases from a half-percent to one percent to be collected in nine counties, increasing revenues by about a billion dollars.