Moody's Investment Services has placed 15 California transit agencies under review for a downgrade due to a potential lack of federal funding.
The transit agencies have and will continue to lose federal grants unless California can negotiate pension benefits with its transit workers.
The 2012 California Public Employees Pension Reform Act increased employee pension contributions along with an increase to the retirement age, among other things. Unions representing the transit employees have protested the law, invoking the Federal Transit Act, which allows the Department of Labor to withhold federal transit funding if it appears that collective bargaining rights are obstructed.
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