 In the late 1950s and 60s, Santa Barbara Transit was losing revenue, and repeatedly threatened to go out of business.Strikes were also a problem, as the company could not afford to pay its employees.At first, the City of Santa Barbara considered subsidizing the transit company, but since service was needed to Carpinteria and Goleta as well, a transit district was thought to be a better choice, because it would also be able to levy taxes on separately.