AC Transit Holds Public Hearing June 11 on Bus Service Cuts, Fare Changes

News Articles
06/09/2003

AC Transit will hold public hearings at 3pm and 6 pm, Wednesday, June 11, at Oakland’s Scottish Rite Center, located at 1547 Lakeside Drive in downtown Oakland, on fare increases and service reductions proposed to help offset an anticipated $50 million reduction in revenues in fiscal year 2003-2004.

The continuing decline in the nation’s economy has severely reduced AC Transit’s sales tax receipts and investment income, making fare increases and service reductions necessary to balance the $250 million annual budget. The District is expecting to generate from $6 to $8 million in additional fares and save up to $20 million in costs associated with service reductions. These actions will match $25 million in non-service cost reductions and revenue enhancements the District has already taken to balance its budget.

The decline in the economy follows a period of growing ridership – 3 to 6 percent annually over the last several years – and numerous requests from transit riders and local communities to add more service throughout the District.

AC Transit General Manager Rick Fernandez acknowledges the extremely difficult circumstances the District now faces. We have carefully managed our resources over the last five years, and the public has given us tremendous support at the ballot box, first in support of Alameda County’s Measure B, which doubled our share of transit dollars from a ½ cent sales tax for transportation, and more recently, the Measure AA Parcel Tax. Each measure passed with overwhelming majorities. In spite of these results, and our best efforts to run a lean and fiscally sound operation, the severe decline in the economy leaves us no choice but to raise fares and reduce service.

AC Transit is not alone in facing this fiscal challenge. Transit systems throughout the Bay Area are struggling with similar financial problems, some of which are larger in scale with more severe impacts on fares and service.

Since 2001, AC Transit has initiated a number of cost control measures to help guard against an expected decline in revenues and to avoid fare increases and service cuts. These included elimination of 147 non-driver positions; deferral of non-bus capital expenditures; reductions in outside consulting services and temporary help, as well as overtime; and stringent controls on discretionary expenses, including travel and training.

In 2002, the District floated a successful parcel tax referendum to voters, which will generate $7.5 million per year of new revenue. While Measure B’s reauthorization doubled the District’s transit share, anticipated receipts from this measure have been far below conservative estimates prepared by the County Tax Auditor. In combination, both measures serve to help minimize the severity of service cuts, but do not generate enough revenue to avoid these cuts and raise fares.

While the District has begun taking delivery of new buses purchased in 2001 with the aid of bus capital grant funds, to replace 18-to-19-year-old buses, more than $40 million in additional capital funds to replace 12-to-15-year-old buses during the next two fiscal years will be deferred to help balance the operating budget. Also, the District has entered into an agreement with financial institutions for the sale and lease-back of its new bus fleet in order to generate $2.3 million in new revenue.

To guard against fiscal emergencies, the District has historically maintained a reserve fund equal to approximately 15% of its operating budget. A transfer of the full amount of this accrued fund – $32.9 million – has been made to the operating fund to help balance revenue losses sustained in current fiscal year which ends June 30.

The proposed service reductions, which would go into effect in December if approved, focus on bus routes serving Richmond to Hayward. Targeting primarily bus lines and scheduled trips with light patronage, the proposals would reduce service by more than 16% or approximately 240,000 hours per year. Listed below are the bus service proposals, plus summaries of two options for fare adjustments. This information is detailed on this  Web site and can also be found in printed form on buses and local libraries and city halls

FARE PROPOSALS

Fare options, which could be introduced in September, include one proposal (Option One) that would reduce cash fares to $1 (instead of $1.50) per local ride for adults (ages 18-64), and 50¢ (rather than 75¢) for youth (ages 5-17), seniors (65 and older), and passengers with certified disabilities. Transbay cash fares would be $2 (rather than $3) per ride for adults and $1 (instead of $1.50) for other rider categories, and the current long-distance transbay fares and rates would be eliminated.

Under this proposal, which would be tested for one-year beginning this summer, a fare would be paid with each boarding – eliminating the 25-cent bus-to-bus transfer and the one-day, ten-ride and 31-day passes. The BART Plus pass would no longer be accepted on AC Transit. The Bus-to-BART transfer would be continued at a 25-cent value credited against the new $1 cash fare.

A second proposed option would retain today’s cash fares – except long-distance transbay fares, which would be eliminated, and the $1.50 Intercity Express cash fare, which would go up to match the current $3 transbay fare. In this proposal, the valid period for 25-cent bus-to-bus transfers would be reduced from two hours to one hour, and only one use would be permitted.

In this option, today’s ten-ride and 31-day passes would be replaced by a new 15-day bus pass, costing $30 for adult and $10 for youth local trips, and $50 for adult transbay rides. The transbay long-distance pass would be eliminated. Day passes and other discounted fare media would also be eliminated. The monthly pass for seniors and passengers with certified disabilities would cost $20. The BART Plus flash-pass would no longer be accepted on AC Transit.

Under both proposed fare options a $4 million pilot program providing free passes to 32,000 secondary school students would be discontinued at the end of the current school year.

SERVICE ADJUSTMENTS:

In North Alameda County (Oakland-Berkeley-Piedmont-Alameda): Discontinue Lines 1, 2 and 5 (retaining school service), 17, 35X, 36X, 44, 47, 49 (including 49M and 49X), 58X and 60 (retaining school service), 315, 345 and 354. Replace Lines 3 and 4 with new Line 41. Change or reduce service on Lines 9, 46/46A, 48, 50, 53, 56, 57, 62 and 63. Introduce a new Line 61 connecting the Oakland Airport and BayFair BART via 73rd Ave. and MacArthur Blvd. Add service on Line 57. Change or eliminate Line 58. Match Welfare-to-Work service-levels to available revenues by reducing Line 56 (four evening trips in each direction) and discontinuing Lines 315, 345 and 354.

In Central Alameda County (Hayward-San Leandro-Castro Valley): Discontinue Lines 87 and 89. Reroute Line 90 to serve Jackson and Amador streets (discontinuing service on Santa Clara St. south of West Winton Ave.). Restructure Line 91-Castro Valley-Hayward-South Hayward (discontinuing service west of Tennyson Rd. and Huntwood Ave.). Change Line 92 to operate on Hesperian Blvd. to Chabot College or Kaiser Hospital (discontinuing service on Turner Ct. and Calaroga Ave.)

Other possible changes in Central and Northern Alameda County: Reduce or entirely discontinue Lines 21, 55, 56, 59, 64, 65, 66, 67, 77, 80, 81, 84, 87, 90, 93, 94 and 95.

In West Contra Costa County (Richmond-San Pablo-El Cerrito) Discontinue Lines 68, 73, 75 and 78 (retaining school service). Serve Macdonald Ave. on weekdays with Golden Gate Transit Line 42, on weekends by AC Transit. Extend Line 69 to Orinda BART via San Pablo Dam Rd.

Transbay: Restructure MacArthur corridor service, incorporating Line RCV in a new Line N-series of peak period freeway expresses entering I-580 at Fruitvale, Ave., High St., Dutton Ave. and Benedict Dr. Change Lines N/NL to operate as Rapid Bus service between Eastmont and S.F. via downtown Oakland (20th St. and Broadway). Discontinue Lines B, K, KH, LB, LC, LD, OX1, WA and Y. Extend Line L to operate (from S.F.) via BART El Cerrito del Norte, continuing to El Portal and I-80 (replacing existing Lines LB/LC). Reduce some trips on Lines O, OX and W.