TO: AC Transit Board of Directors
FROM: Salvador Llamas, General Manager/Chief Executive Officer
SUBJECT: Draft FY 2026-27 Operating and Capital Budgets
BRIEFING ITEM
AGENDA PLANNING REQUEST: ?
RECOMMENDED ACTION(S):
Title
Consider receiving a report on the Draft FY 2026-27 Operating and Capital Budgets.
Staff Contact:
Chris Andrichak, Chief Financial Officer
Body
STRATEGIC IMPORTANCE:
Goal - Financial Stability and Resiliency
Initiative - Financial Efficiency and Revenue Maximization
Presenting to the Board a Draft Funded and Draft Unfunded budgets for operating and capital needs in fiscal year 2026-27 allows for an early picture of what the District's financial state will be for the coming fiscal year.
BUDGETARY/FISCAL IMPACT:
Two draft budget scenarios are presented and used interchangeably in this staff report: Funded (or Baseline) and Unfunded (or Alternative). The Draft Funded/Baseline assumes the Regional Measure will pass and no extraordinary cost-cutting measures are necessary to maintain current 85% service levels. The Draft Unfunded/Alternative assumes the regional measure fails and the District will be forced to reduce service levels as well as other associated costs.
The total revenue budgets for the Draft Funded and Unfunded are $634.9 million and $623.4 million, respectively. The primary difference is the amount of State loan funds used to meet the budgeted expense level. If the potential regional funding measure does not pass, the cost reductions in the unfunded budget will allow the District to use less State loan funds, $54.5 million for the Funded and $43.3 million for the Unfunded. The Unfunded budget starts a gradual ramping down of expenses through reductions in labor and non-labor followed by a reduction in service. If the funding measure does not pass, in addition to the direct changes that will happen to the District, there will likely be a number of regional effects of changes in ridership and commuting patterns s...
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