AC Transit facing possible fiscal emergency
Dwindling financial resources and rising costs has forced AC Transit’s board of directors to call for a public hearing on May 25 in what could be a precursor to possibly declaring a “financial emergency.” The move would exempt the Oakland, CA-based agency from complying with the provisions of the California Environmental Quality Act, allowing for quicker operational adjustments to counter what is expected to be a financial crisis.
According to the predicted economic environment over the next two years, the agency is expected to see a shortfall of $14.9 million in working capital for the fiscal year ending June 30, 2012. To ease the financial strain, AC Transit has adoped fare increases, reviewed expenditures, instituted a hiring freeze and reduced bus hours by 13 percent since October. For more, visit www.actransit.org.