Bus Riders Could See Service Cuts
By Edward Carpenter
AC Transit bus lines could be cut in the near future as part of the fallout from California's economic slump.
To avoid the cuts, AC Transit will ask voters on the Nov. 5 ballot to approve bond Measure AA, worth $7.5 million annually. The parcel tax, which would expire in June 2008, amounts to about $24 per person per year for each parcel of property owned. In a proposal dated Oct. 3, low-ridership lines in Piedmont, Montclair and the Hiller Highlands would be hardest hit if cuts are approved. Among the lines that could be eliminated are 2,3 and 4, which run through the Piedmont Hills.
To pass, Measure AA requires 2/3-majority approval from residents in Alameda and Contra Costa counties.
The AC Transit governing board hopes the tax will "help mitigate impacts that substantial projected budget deficits would have on the District's bus service," Mills said. Mills didn't know what size deficit is projected for next year.
So far, AC Transit has managed to stave off any significant cuts in service by raising fares and not hiring for numerous non-vital vacancies.
"No appreciable level of service (has been) cut yet. But, if the economy doesn't recover very soon, you can count on seeing cuts," Mills said. Mills went on to warn the cuts could start as early as June.
By increasing fares from $1.35 to $1.50 for adults and 65 cents to 75 cents for students and seniors at the beginning of September, AC Transit increased its fare-box revenues by about 4 percent, or $2.5 million, compared with last year. The bad news is that despite increased fares and revenues, AC Transit riders won't come any closer to helping the service pay for itself.
"That's a difference, but not a material one in my mind," Mills said, referring to the $2.5 million increase in fare-box revenues.
For each of the past two fiscal years, AC Transit fares made up about 20 percent of the total budget.
"The money ($2.5 million) would be used to fund the operation and maintenance of bus service," Mills said, which includes salaries and repairs.
AC Transit's rate of return on fares pales in comparison to Samtrans, the San Mateo County bus service, which estimates its fares pay for more than 27 percent of its budget. BART fares, in comparison, pay for about 58 percent of its budget.
Mills said AC Transit is different in nature and can't be compared to BART of a smaller bus agency like Samtrans.
"We operate one of the nation's largest all-bus fleets. And buses, by their nature, are labor intensive," Mills said.
Besides the expense of buses, drivers, mechanics and engineers, AC Transit intentionally incurs some costs each year for "providing a high level of service throughout the day and operating relatively low-productivity lines into the evening hours… to provide mobility for those with no option other than transit," Mills said.
While AC Transit has so far avoided serious bus line cuts this year, other areas have been put under stringent spending controls, Mills said.
"Old desktop computers remain in service, some data processing systems and software is not being updated, requests to update other equipment are being tabled and some contracts for professional services are being allowed to expire," Mills said.
The company has also dipped into its reserves to the tune of about $9 million while some major construction projects, too, have been eliminated or delayed.
"The biggest single delay I'm aware of is in our administrative offices in downtown Oakland, which are more than 15 years old," Mills said, referring to renovation work that was scheduled for this year. Minor damage, not structurally related, also remains from the 1989 Loma Prieta earthquake at several AC Transit office locations, including the customer service office at 1600 Franklin St. in Oakland.