Public Gives Input at Last Community Forum

Press Releases
05/12/2009

Hoping to share information about the looming financial crisis, AC Transit has held the first in a series of five public forums to solicit input on ways to preserve service for as many people as possible. And so far, the public response has been both enlightening and plentiful.

More than 100 people showed up for forums in San Leandro, Newark and Berkeley,  and agency officials anticipate even larger turnouts for the final two workshops scheduled in San Pablo and Oakland.

Based on the forecasted economic environment over the next two years, the District is expected to suffer significant declines in its main revenue sources. There has been a steady decline in revenues from sales taxes. But especially aggravating has been Governor Schwarzenegger’s decision to eliminate State Transit Assistance (STA) funding for the next five years, redirecting more than $100 million that could be used to help balance the District’s budget.

As is, the District will drain its financial reserves and face a deficit of as much as $57 million by the end of the 2010 fiscal year.  To cope with the shortfall, the District is forced to reduce its service by at least 15 percent, and organized the workshops to hear from bus riders and the community at-large on how best to do it.

“These are not easy times for any of us,” said General Manager Rick Fernandez. “So, we want to make our dilemma clear to the public and, most of all, hear the community’s concerns and ideas.”

On May 27, 2009, the agency’s Board of Directors will convene a public hearing to consider whether to officially declare a “state of emergency.”

Despite the recent passage of Measure VV, the ongoing weakening of the local economy and the catastrophic loss of STA funding is causing AC Transit to adopt a fare increase, effective July 1, 2009; scrutinize all expenditures; institute a hiring freeze for all but essential positions; direct staff to achieve operating/service efficiencies of 15 percent of the budget; and, as last resort, outline service adjustments that will be enacted later this year.