TO: AC Transit Board of Directors
FROM: Salvador Llamas, General Manager/Chief Executive Officer
SUBJECT: Economic Impact of AC Transit Spending
BRIEFING ITEM
AGENDA PLANNING REQUEST: ?
RECOMMENDED ACTION(S):
Title
Consider receiving a report on the economic impact of AC Transit spending. [Requested by Director Shaw - 4/9/25]
Staff Contact:
Chris Andrichak, Chief Financial Officer
Claudia Burgos, Interim Executive Director of External Affairs Marketing & Communications
Body
STRATEGIC IMPORTANCE:
Goal - Strong Public and Policymaker Support
Initiative - Financial Efficiency and Revenue Maximization
Informing the public, riders, and policymakers where AC Transit's funding ultimately flows to - and what the District's economic impact is - helps to garner support for District initiatives and funding measures.
BUDGETARY/FISCAL IMPACT:
There is no fiscal impact associated with this report.
BACKGROUND/RATIONALE:
With an FY 2024-25 operating budget of $606 million and capital budget of $267 million, AC Transit spends a significant amount of money each year purchasing goods and services across the region, state and country. The "economic impact" of the District includes not only those purchases, but also the wages and benefits that are paid out to employees. This report includes two different analyses:
1. Payments (excluding wages) to vendors and contractors for the period of May 2023 to May 2025
2. Economic impact based on the economic impact model developed by the American Public Transit Association (APTA) for Fiscal Year 23-24.
Staff notes the data in this staff report is for two different timeframes (May 2023 - May 2025 and FY 23-24). The reason for this is that the APTA economic impact tool uses National Transit Database (NTD) information for a single fiscal year. Staff used the FY 23-24 District data, which has been submitted to NTD but is not yet published.
Spending - Goods and Services
Staff analyzed the prior two years of vendor pay...
Click here for full text