AC Transit, the transit agency serving Alameda and Contra Costa counties, has recently approved a budget that seeks to maintain 85% of bus services compared to pre-pandemic levels, according to an announcement by the Board of Directors. The operating budget set for the Fiscal Year 2025-26 is balanced, adopted without necessitating cuts or layoffs among the frontline workforce, and it's a result of substantial cost reductions across all of AC Transit's departments. "Reaching this milestone balanced budget included significant belt-tightening measures," said Board President Diane Shaw, per AC Transit.
While the budget avoids immediate service reductions, the Board knows that the upcoming fiscal year will no longer benefit from the emergency relief funds provided in response to COVID-19. With the reserves expected to be depleted by Fiscal Year 2026-27, a daunting $72 million shortfall is projected, as stated in the AC Transit press release. To counteract the limited financial runway, this year's budget utilized $41.5 million in reserves, avoiding the need for immediate cuts or layoffs.
The Board of Directors has also approved a fare increase to help balance the budget beginning July 1, with local adult cash fares rising by 25 cents, from $2.50 to $2.75, and Transbay cash fares from $6.00 to $6.50. A subsequent increase will see local cash fares rise to $3.00 a year later. "The fare adjustments will roll out in two phases," informed AC Transit, emphasizing the availability of the Clipper® START program that offers fare discounts to eligible low-income riders, youth, seniors, and riders with disabilities.
To buoy ridership numbers that remain at 85% of pre-pandemic levels, AC Transit is also launching the all-new Realign Bus Network on August 10, aiming to adapt to current ridership patterns and pandemic-related changes. While the past fiscal year saw an increase in boardings, the agency acknowledges the need for long-term financial stability as fare revenue growth slows. "After two years of careful planning, extensive community engagement, and a strong commitment to equity, Realign is set to launch on August 10," noted AC Transit.
