AC Transit facing possible fiscal emergency

Faced with rising costs and dwindling financial resources, the AC Transit Board of Directors has called for public hearings on May 26, 2010, as a prelude to possibly declaring a "fiscal emergency." A declared "fiscal emergency" would provide the District with the ability to make ongoing adjustments in service and operations to counter what is projected to be a debilitating financial crisis.

The May 26th public hearings will be held at 2pm and 6pm 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 shortfall in "net working capital" of $4.132 million during the next fiscal year (2010-2011.) Although other financial resources are being pursued, the operating deficit is expected to worsen by the end of fiscal year 2011, ballooning to more than $56 million.

If a fiscal emergency is declared it will be the second 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 increase, effective July 1, 2009
• 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
• Instituted service adjustments that have reduced operational bus hours by 8.4 percent as of March 28, 2010.

Suggestions are invited either in writing or at the public hearings. The public is urged to submit written suggestions by letter, facsimile, or e-mail until the close of the public hearings on May 26, 2010.

Written suggestions also may be submitted up to the close of the hearings. Address written suggestions to AC Transit, Board of Directors, 1600 Franklin Street, Oakland, CA 94612, send it by facsimile to 510-891-7157 or send it by e-mail to districtsecretaryactransit.org. For voicemail messages call (510) 891-4868.

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The meeting site is wheelchair accessible. Upon request, a sign language interpreter will be present at the hearing. Also foreign language interpreters can be provided, if needed. Please contact the District Secretary's Office at (510) 891-4851, by noon, Friday, May 21, 2010, to make arrangements. Hearing-impaired only, call: TDD-ONLY 1 800 448-9790.

Please do not wear scented products to the public hearings.