The outlook of public transport initiatives, such as the San Diego Association of Governments (SANDAG), has never looked bleaker. Currently, the amount of money allocated to SANDAG to pay for regional transportation projects is running low and only worsening.
SANDAG entered into many risky side deals in bonds in 2008 in hopes of paying for TransNet projects. It was a wager on rising interest rates, doomed by the economic crash to stay at a historic low, and liability now comes with a price tag. The swaps resulted in a deficit of $77.6 million in June, which has since plummeted further to an $85.1 billion deficit.
Despite these swap deals costing the agency almost $25.8 million dollars, SANDAG has chosen to bury its head in the proverbial sand, claiming that these deals are working “as intended.” Sure, if you intend to drive California’s economy into the ground.
As if we haven’t received enough proof that SANDAG Executive Director Hasan Ikhrata and his other officials have zero financial responsibility, the state of these bond deals should serve as the nail in the coffin for SANDAG.
Sadly, the aspiration of a public transportation powered future seems to trump all else in the eyes of SANDAG officials. Their ridiculous practices will only carry forward to future projects. We cannot trust this institution with our public finances for any longer.
