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AC Transit cancels 'Fiscal Emergency' hearing

Posted on May 23, 2011

In light of new analyses of its finances, Oakland, Calif.-based AC Transit's board of directors cancelled a public hearing this week to consider declaring a "fiscal emergency."

The public hearing was planned in anticipation of a substantial shortfall in the agency's working capital for the fiscal year ending June 30, 2012. The "fiscal emergency" declaration would have exempted AC Transit from complying with the provisions of the California Environmental Quality Act (CEQA), allowing for quicker operational adjustments to cope with the forecasted deficit.

But, "after a comprehensive review of all aspects of the District's operations, including support and other non-core activities, the District has developed a biennial budget that incorporates major reduction of expenses...and provides for significant revenue solutions," the agency's chief financial officer wrote in a memo to the board.

Consequently, with re-organizations and other cost efficiencies, AC Transit is now projected to have a modest revenue surplus for fiscal year 2011-12 and fiscal year 2012-13 "in light of the new reality of funding."

The new analyses stave off the need for a public hearing for purposes of considering or declaring a fiscal emergency.

 

 

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