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AC Transit Board To Consider Declaring Fiscal Emergency

ac_transit_rider.jpgFlickr photo: pbo31

The MTA Board did it this week, and now AC Transit may become the second transit agency in the Bay Area to declare a fiscal emergency. Such a declaration allows the agencies to bypass environmental review in order to implement service cuts.

The AC Transit Board of Directors voted yesterday to hold a public hearing on the issue next month. From the press release:

The projected drop in resources will force the District to deplete itsfinancial reserves, leaving the District with a shortfall in “net workingcapital” of $9.74 million during the next fiscal year (2009-2010.)  Thedeficit is expected to worsen by the end of fiscal year 2010, ballooning to asmuch as $57 million.

Fare increases are already scheduled to take effect July 1st. The agency has also instituted a hiring freeze, among other things.

The public hearing will be held Wednesday May 27th, in the second floor Board Room, 1600 Franklin Street, in Oakland.

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