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City Directs 2nd Look at Transit Funds Share

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Is the Valley getting its mandated share of transportation tax money from the Red Line subway construction project?

The City Council, expressing its doubts, voted unanimously Wednesday to delve further into the question, after the Metropolitan Transportation Authority recently released a report from its auditor showing the Valley has not received the money it deserves.

The council’s action officially directs the city attorney and the Department of Transportation to take a second look at the findings of the MTA’s inspector general, which were released July 7.

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“This is all about due diligence,” said Councilwoman Laura Chick, who sponsored the unanimously passed motion. “We want to absolutely ensure that we are getting our money.”

A state law enacted in 1984 mandated that at least 15% of all nonfederal money spent on the Metro Red Line project be given to the Valley for transportation uses.

But Chick and former Assemblyman Richard Katz, fearing the MTA was not giving the Valley its share of revenue, asked the agency two years ago to do an audit.

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The MTA inspector general’s report found the MTA did not properly direct money to a fund for Valley transportation, as it was legally required to do. The inspector general found the MTA had failed to deposit $82 million into the fund.

The MTA, though, insisted to the auditor that the money it has spent on Valley transportation far exceeds $82 million.

Chick expressed concern the money could have accrued interest had it been placed in a trust fund and said she wants to ensure the Valley isn’t owed more money.

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An official for the MTA said the agency welcomes further review of the audit. “Our books are open, so we will cooperate” with the city’s wishes, said Ed Scannel, an MTA spokesman.

The MTA’s use of funds has been used as an issue by Valley secessionists who believe the area would be better served if it had its own transportation agency.

The MTA’s underground Red Line has a total projected cost of about $4.5 billion. Roughly $4 billion has been spent so far on the subway, which now runs from mid-city to Hollywood and will eventually wind up going to North Hollywood by next summer.

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