Audit Finds Regional Coordination Across California's East Bay Transit Agencies
The State Auditor further concluded that while collaboration among transit agencies is functioning, the Bay Area’s public transportation systems face mounting structural fiscal pressures that threaten future service levels if sustainable funding solutions are not secured.

As part of the review, California’s State Auditor examined how well AC Transit, County Connection, Wheels, Tri Delta Transit, Union City Transit, and WestCAT work together, the financial pressures they face, and whether consolidating transit agencies would improve efficiency or reduce costs.
CTE/AC Transit
- The State Auditor has found that collaboration among transit agencies in California's East Bay region is operational.
- Bay Area public transportation systems are experiencing increasing structural fiscal pressures.
- Without sustainable funding solutions, future service levels of the transit systems are at risk.
*Summarized by AI
Oakland, California’s Alameda-Contra Costa Transit District (AC Transit) highlighted the findings of a newly completed state audit examining six East Bay transit agencies and the Metropolitan Transportation Commission (MTC), which concluded the agencies have established regional coordination efforts and outlined recommendations for additional collaboration.
The State Auditor further concluded that while collaboration among transit agencies is functioning, the Bay Area’s public transportation systems face mounting structural fiscal pressures that threaten future service levels if sustainable funding solutions are not secured.
The State Audit’s Findings
Commissioned by the Joint Legislative Audit Committee after a formal April 2025 request from State Senator Aisha Wahab, the audit was launched in response to concerns that East Bay transit systems were too fragmented, duplicated some services, created challenges for riders transferring between agencies, and faced long-term financial instability.
As part of the review, California’s State Auditor examined how well AC Transit, County Connection, Wheels, Tri Delta Transit, Union City Transit, and WestCAT work together, the financial pressures they face, and whether consolidating transit agencies would improve efficiency or reduce costs.
According to AC Transit officials, the findings make one point clear: East Bay transit agencies are already coordinating in meaningful ways. The greater challenge is not a lack of collaboration but the need for long-term, sustainable funding to ensure future service.
Among the audit’s most significant findings:
- Transit coordination across the East Bay is already strong: Auditors took 12 real-world commute trips that everyday riders could reasonably make across East Bay service areas, covering about 25% of routes that cross agency boundaries. They conclude that riders did not face significant barriers or major problems transferring between agencies.
- MTC regional integration initiatives continue to lag behind schedule: Although MTC has launched multiple initiatives intended to improve the rider experience across the Bay Area, auditors found that none of the nine reviewed initiatives were completed within their preliminary timelines. The finding raises concerns about the pace of regional transit modernization efforts.
- Five of the six transit agencies face serious fiscal risks: Apart from Tri Delta Transit, the selected East Bay transit agencies have adequate short-term financial reserves. However, all but Union City Transit are at risk of depleting those reserves without new funding — some as soon as fiscal year 2026–27. As a result, agencies may be forced to reduce service levels, further impacting mobility, economic access, and regional connectivity.
- Zero-emission bus mandates present major financial hurdles: Transit agencies reported significant concerns about the cost of purchasing and deploying zero-emission buses required under California mandates. The report identifies the transition as a growing operational and fiscal challenge for public transit providers.
- Transit agency consolidation is unlikely to solve financial problems: Auditors examined whether combining agencies could improve financial sustainability and found that consolidation alone would not resolve structural deficits. Combined agencies would still face negative unrestricted net positions and long-term financial pressures.
- Legal and labor-related barriers could complicate consolidation efforts: The report notes that federal protections governing private contractors, along with differing labor agreements, would pose substantial challenges to consolidation. Additionally, standardizing wages and benefits across merged agencies could significantly increase costs, as AC Transit currently has substantially higher labor costs than neighboring operators.
More Audit Takeaways
The audit presents a balanced view of how East Bay transit agencies are working together effectively for riders, but the region’s transit network remains financially vulnerable, AC Transit officials said.
The report also makes clear that consolidation alone will not solve the problem. Long-term sustainability will depend on “stable funding, careful management of rising operating costs, and the ability to meet ambitious state climate goals while navigating real fiscal constraints.”
Quick Answers
The State Auditor concluded that collaboration among transit agencies in California's East Bay is functioning.
*Summarized by AI
More Management

Joshua Schank on Transportation Innovation, Risk, and the Future of Mobility
In this edition of METROspectives, Joshua Schank discusses lessons from launching LA Metro’s Office of Extraordinary Innovation, the challenges of advancing new mobility technologies, and much more.
Read More →
Reinventing Fleet Maintenance with Real-time Visibility and AI
Transit leaders need to know what needs fixing, where to look, who is responsible, when work is completed, and what it costs without having to chase information across disconnected systems.
Read More →
Alstom Acquires Delaware Site to Support Amtrak NextGen Acela Fleet
The company is investing more than $55 million to acquire and improve the property and will employ approximately 100 people at this site once it is operational.
Read More →
SamTrans Sets Priorities for Potential Connect Bay Area Revenue
The board-approved framework allocates future funding to maintaining service, rider improvements, equity initiatives, and infrastructure repairs.
Read More →
Federal Transit Officials Launch MARTA Safety Probe
FTA has given MARTA 15 days to provide records on crime prevention, fare evasion enforcement, and security funding as part of a broader safety investigation.
Read More →
ABA's Ferguson Testifies in Support of BUS Act, National Standards for Bus Operators
The BUSES Act would create a nationwide framework preventing state and local governments from enforcing bus idling restrictions of less than 15 minutes, a threshold consistent with existing Environmental Protection Agency guidance.
Read More →
When Routine Fails: How Public Transit Must Adapt for the World Cup
The 2026 FIFA World Cup will test transit agencies’ ability to manage unpredictable travel patterns, making real-time data and operational flexibility critical to moving millions of visitors efficiently.
Read More →
Florida’s JTA Puts Innovation in Motion Ahead of America250
The agency unveiled a commemorative America250 bus during a visit from U.S. DOT's Seval Oz and showcased its autonomous mobility programs.
Read More →
California Selects Team for Nation’s First True High-Speed Rail Track and Systems Contract
The board action follows completion of track installation at the 150-acre southern railhead in Kern County, which will serve as the staging and distribution hub for high-speed track and systems installation.
Read More →
IndyGo, Cleveland RTA Expand Digital Fare Payment Options with Masabi
The new systems combine mobile apps, smart cards, and automatic fare capping to simplify payments, expand flexibility, and help riders access the lowest available fares.
Read More →