AC Transit balances budget
New performance and management strategies have taken hold over the past year, cutting expenses, boosting workforce efficiency and winning approval from the AC Transit board of directors.
For the second consecutive year, Oakland, Calif.-based AC Transit is on track to end the 2012-13 Fiscal Year with a balanced budget, resulting from a series of new initiatives and performance strategies.
The ongoing recovery of the local economy has led to a more stable, reliable stream of subsidies primarily from sales and parcel taxes. But, new performance and management strategies have taken hold over the past year, cutting expenses, boosting workforce efficiency and winning approval from the AC Transit board of directors.
Key among the budgetary success has been the hiring and training of dozens of new bus operators. By increasing the availability of operators, the agency simultaneously enhanced its on-time performance while reducing the need for costly overtime.
Last year, the agency’s budget was balanced with deft but austere adjustments that included layoffs, service reductions and the closing of the Richmond bus yard. This year, balancing the agency’s $314 operating budget has been largely the product of new management techniques.
“Our focus now is on a variety of new initiatives to improve efficiency as way to both upgrade our customer service and lower our expenses,” said GM David Armijo. “As an example, we are buying new, better-performing buses — phasing out older, less reliable vehicles that routinely require expensive repairs.”
In addition:
Operating revenues have been slightly higher that projected.
Operating expenses have been slightly lower than projected.
Subsidies overall, were slightly more than originally budgeted.
Property taxes are expected to provide increased funding.
More Bus

Biz Briefs: Endera Delivers to California, Safety Vision Teams with San Antonio's VIA, and More
From manufacturers and suppliers to transit agencies and motorcoach operators, these updates offer a snapshot of the projects, partnerships and business moves driving the industry forward.
Read More →
VIA's Silver Line Clears Environmental Review, Advances Toward Construction
The VIA Rapid Green Line is currently under construction, with service expected to begin in April 2028.
Read More →
Modernizing Mobility with CharterUP CEO Armir Harris
From digital transformation to evolving customer demands, CharterUP's Armir Harris offers his perspective on the transportation industry's next chapter.
Read More →
CTTC Enhances Transit Workforce Pipeline Through New Partnerships and Leadership
The group's latest initiatives focus on developing talent, expanding training opportunities and addressing workforce needs across the transit sector.
Read More →
Biz Briefs: Montréal Debuts Nova Electric Buses and More
In this edition of Biz Briefs, we spotlight the latest developments shaping the future of mobility.
Read More →
The Hidden Cost of Fuel Data Inaccuracy in Public Transit Fleets
In today's transit environment, accurate fuel and mileage data are critical to reducing costs, minimizing downtime, and improving fleet performance.
Read More →
Virginia's $28.5B Transportation Plan Targets Transit and Rail
Approved by the Commonwealth Transportation Board, the program supports ongoing infrastructure projects while providing new investments in transit, state of good repair and transportation alternatives.
Read More →
Bipartisan BUSES Act Seeks Changes to New York City's Bus Idling Enforcement Program
Backed by motorcoach operators, the legislation seeks to balance emissions goals with passenger safety by allowing limited idling for inspections, accessibility needs and extreme weather conditions.
Read More →
D Line Expansion Fuels Growth Across LA Metro's Rail System
Weekend rail ridership was especially strong, soaring 18% as riders embraced expanded access to jobs, entertainment, dining, and cultural destinations, said the agency. Total system ridership for May, including bus and rail, was 26,966,657.
Read More →
ENC to Deliver Three Clean Diesel Buses to Canada's York Region Transit
Since 2005, City View and ENC have supplied nearly 90 E-Z Rider II buses to YRT.
Read More →