It's a bit less than what was promised last year, but Governor Gavin Newsom has signed off on a $590 million loan package for Bay Area transit agencies, which have been facing serious budget problems since the pandemic.

Ridership is not back nearly where it was, and BART continues to grapple with potential station closures and service cuts as a result of the revenue blow. But the state has come through with a $590 million loan fund that BART says it will tap into only if Bay Area voters approve a sales tax measure in June that is mean to help close BART's budget gap in the long term.

Governor Newsom announced the loan approval Thursday, saying, "California is stepping up to support Bay Area transit—this agreement will help protect transit service for more than three million monthly riders. The benefits of a strong transit system are clear: growing ridership, cleaner air, and less congested roads."

The funds, which will also be shared by Muni, AC Transit, and Caltrain, will be disbursed by the Metropolitan Transportation Commission.

The $590 million is $160 million shy of the $750 million loan number that was promised when the state legislature passed the budget last June, but officials say it will help stanch the bleeding, especially for BART. And, as state Senator Scott Wiener said in June, this funding was meant to complement SB 63, the senate bill that put the sales tax measure on the ballot.

In a statement, the BART agency said Thursday, "These loan funds will be used if a November transit funding ballot measure is successful or another reliable source of funding is provided to BART... If it fails, we would not use the loan money because we wouldn’t be able to pay it back."

BART officials have been issuing dire warnings since the start of the new year that seem aimed at scaring voters across all BART-serving counties into voting yes on the ballot measure. Among those warnings is a doomsday proposal to close 15 stations across the system, and to end service each night at 9 pm — both of which would likely result in further ridership and revenue declines.

BART spokesperson Alicia Trost tells KTVU that the agency has already made cuts to service to try to save money. "Service now is not where it was before the pandemic. We're running shorter trains, there's fewer trains running," Trost said.

The measure will appear on ballots in five counties: Alameda, Contra Costa, San Francisco, Santa Clara, and San Mateo.

Wiener, in his social media announcement about the loan approval Thursday, struck a somber note.

"If nothing happens — if inertia sets in — BART will collapse, Muni will reduce up to 50% of all service & AC Transit & Caltrain will enact massive service cuts," Wiener wrote. "This would be horrific for the entire region, including both transit riders & drivers. Everyone will lose."

But, he added, "Transit is essential for the Bay Area’s success... Here’s to a bright transit future."

Previously: As Chronicle Moves on From 'Doom Loop' Headlines, It's Now Calling BART a 'Dying Rail System'

Photo by Derek Zhang