Board Cancels “Fiscal Emergency” Public Hearing
In light of new analyses of the District’s finances, the AC Transit Board of Directors cancelled a public hearing next week to consider declaring a “fiscal emergency.”
The public hearing had been scheduled for Wednesday May 25, 2011. It was planned in anticipation of a substantial shortfall in the agency’s working capital for the fiscal year ending June 30, 2012. The “fiscal emergency” declaration would have exempted the District from complying with the provisions of the California Environmental Quality Act (CEQA), allowing for quicker operational adjustments to cope with the forecasted deficit.
But “after a comprehensive review of all aspects of the District’s operations, including support and other non-core activities, the District has developed a biennial budget that incorporates major reduction of expenses…and provides for significant revenue solutions,” the agency’s Chief Financial Officer wrote in a memo to the Board.
Consequently, with re-organizations and other cost efficiencies, the District is now projected to have a modest revenue surplus for fiscal year 2011-12 and fiscal year 2012-13 “in light of the new reality of funding.”
The new analyses stave off the need for a public hearing for purposes of considering or declaring a fiscal emergency.
More details on the District’s updated financial projections are available online at www.actransit.org. Click on “Find a GM Memo” and then click again on GM Memo 11-112.