Another Fiscal Emergency for AC Transit?

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AC Transit will hold a public hearing on May 25 at 5:00 pm at the offices at 1600 Franklin Street in Downtown Oakland to discuss declaring a fiscal emergency for the third consecutive year.

According to California Beat:

Calling a fiscal emergency would allow AC Transit to cut costs by eliminating service, implementing hiring freezes and reorganize administrative expenses without undergoing environmental reviews that would delay the process.

The agency is facing a $14.9 million shortfall in the coming fiscal year and warns it will face a steeper funding shortage by the end of 2012.

In October, the agency cut 13 percent of bus service to nearly all East Bay communities and hiked fares for riders. This month, the Board approved a ten-year fare increase plan that will increase the base fare incrementally to meet inflation rates.

You can read the entire story here.

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The AC Transit Board voted last week to raise basic bus fares from $2.00 to $2.10, to take effect August 1.

According to Mercury News:

The increase, however, is a tiny fraction of what is needed, district officials said. It will raise just $2.4 million annually to reduce a projected deficit of $21 million in the next fiscal year, according to a district staff report.

As a result, another round of service cuts are likely to be needed within the next 12 to 18 months, King said. AC Transit cut service twice last year.

You can read the entire story here.

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One comment on “Another Fiscal Emergency for AC Transit?

  1. […] Another Fiscal Emergency for AC Transit? […]

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