AC Transit Facing Possible “Fiscal Emergency”
News Articles
05/18/2011
Faced with rising costs and dwindling financial resources, the AC Transit Board of Directors has called for a public hearing on May 25, 2011, a precursor to possibly declaring a “fiscal emergency.” A declared “fiscal emergency” exempts the District from complying with the provisions of the California Environmental Quality Act (CEQA), allowing for quicker operational adjustments to counter what is projected to be a vexing financial crisis.
The May 25th public hearing will be held at 5 p.m. in the Second Floor Board Room at AC Transit’s offices, 1600 Franklin Street, Oakland.
Based on the forecasted economic environment over the next two years, the District is expected to realize a significant shortfall in working capital. Along with rising costs, there has been a steady decline in funding from traditional sources, including local sales and property taxes as well as state subsidies.
The decline in resources and the anticipated ongoing erosion of the local economy will cause the District to deplete its financial reserves, leaving a $14.9 million shortfall in working capital for the fiscal year ending on June 30, 2012. Although other financial resources are being pursued, the operating deficit is likely to worsen by the end of fiscal year 2012.
If a fiscal emergency is declared it will be the third consecutive year the District has been forced to do such. To help cope with the loss of revenues and the lingering economic downturn, AC Transit has already:
- Adopted a fare increases
- Scrutinized all expenditures and eliminated all but those deemed to be essential
- Instituted a hiring freeze for all positions unless critical to maintaining operations
- Mandated staff to achieve operating/service efficiencies of 15 percent of the budget
- Adjusted service, reducing operational bus hours by 13 percent as of October last year.
Public comment is invited either in writing or at the public hearings. The public is urged to submit written comments by letter, facsimile, or e-mail, but these must be received no later than the close of the hearing on Wednesday, May 25, 2011. Written comments also may be submitted up to the close of the hearing. Address written comment to AC Transit, Board of Directors, 1600 Franklin Street, Oakland, CA 94612; by email to districtsecretary@actransit.org, or by fax to (510) 891-7157. Suggestions may also be provided by voicemail at (510) 891-4868.
The meeting site is wheelchair accessible. Upon request, a sign language interpreter will be present at the hearing. Foreign language interpreters can be provided, if needed. Please contact the District Secretary’s Office at (510) 891-4868 by Friday, May 20, 2011, at 5:00 p.m., to make arrangements. For TDD for hearing impaired, call 711, California Relay Service, and specify (510) 891-4700.
Wearing perfumes and other scented products to the public hearing are discouraged.