TO: AC Transit Board of Directors
FROM: Salvador Llamas, General Manager/Chief Executive Officer
SUBJECT: Proposed FY 2026-27 Operating and Capital Budgets
ACTION ITEM
AGENDA PLANNING REQUEST: ?
RECOMMENDED ACTION(S):
Title
Consider receiving a report on the FY 2026-27 Proposed Operating and Capital Budgets and provide direction to staff to advance the Funded and Contingency (Unfunded) Budget scenario as the basis for the Recommended Budget to be presented for adoption at the June 10th Board Meeting.
Staff Contact:
Chris Andrichak, Chief Financial Officer
Body
STRATEGIC IMPORTANCE:
Goal - Financial Stability and Resiliency
Initiative - Financial Efficiency and Revenue Maximization
The FY 2026-27 Proposed Budget represents staff's final revenue and expense projections. It is presented to the Board for information and direction. Staff plans to return with a Recommended Budget in June for final approval. The FY 2026-27 fiscal year begins on July 1, 2026.
BUDGETARY/FISCAL IMPACT:
Two potential budgets are presented in this staff report: Funded and Unfunded (or Contingency), along with the work product previously requested by the Board.
The Funded and Unfunded budgets are presented together due to the uncertainty of ongoing funding to cover projected deficits in FY 27-28 and after. These two budgets are the same for the first half of the fiscal year, with the Unfunded budget triggered based on the outcome of the potential regional funding measure in November. The Board requested work product was developed in response to the Board request to create a budget that has expenses matched as closely as possible to the current fiscal year budget, FY 2025-26.
Normally, the staff report created for the Proposed budget includes, as an attachment, the first rendition of the budget book, which would be a limited overview of revenues and expenses, including Labor and Non-Labor budgets by department. Due to changing parameters and multiple budget versions i...
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