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Budget
Without taxing authority of its own, AC Transit is funded by a variety of sources. Bus fares, the most visible source of income, only represents about 20% of system operating revenues. Most other funds come from federal, local, regional and state sources. Our annual operating budget is over $320 million.
Adopted Biennial Budget FY2009-10 and FY2010-11
This pie chart offers a quick overview of the District's General Fund Adopted Budget revenue and expenses for the current FY 2009-10 fiscal year. Almost 73 percent of the District's General Fund Operating Expenses Budget is committed to the salaries, wages and benefits of our 1,948 employee base projected by the end of FY 2009-10.
National Transit Database Reports
AC Transit's National Transit Database (NTD) reports for FY 1997-2007 are provided below. These include charts summarizing finance, fleet and service information.
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
Notes on Revenue Sources
Federal Sources
FTA Grants. Funds for urban mass transit are available from the Federal Transit Administration (the “FTA”) to qualified transit authorities pursuant to procedures set forth in the Safe Accountable Flexible Efficient Transportation Equity Act A Legacy for Users (“SAFTEA LU”). SAFTEA LU was enacted in 2005 for the purpose, among others, of providing substantial federal assistance through formula based programs under FTA Section 5307 and Section 5309 to enable mass transportation systems to continue providing vital transit service. The process of obtaining federal capital assistance is initiated by a recipient designated by state and local officials, and by publicly owned operators of mass transportation services. The MTC, as the designated recipient for the nine county Bay Area, and prepares and submits a regional program of projects to the FTA for approval. Additionally, the District is required to file an application with the FTA regional office to be eligible for any FTA program grant. Federal operating assistance grants, which are allocable based on population density and bus revenue miles operated, are authorized by FTA Section 5307 (previously known as the Section 9 program) for the reimbursement of up to 80% of the cost of capital programs and a portion of operating expenses to improve or continue mass transportation service. Operating assistance received under Section 5307 includes funding for preventive maintenance and for ADA Complimentary Paratransit Service. The District also receives FTA Section 8 subsidies for planning assistance.
State and Local Sources
State and Local Operating Assistance. The District receives an allocation of sales tax revenue under the California Transportation Development Act of 1971, as amended, (the “TDA”), under which receipts from a 0.25% sales tax, imposed as part of the State’s current 7% sales tax, are reserved for transportation purposes. The TDA provides that revenue for this tax is placed in two funds, the Local Transportation Fund which was established in 1976 and the State Transit Assistance Program (the “STA”) which was established in 1979.
Transportation Development Act Funds. The Local Transportation Fund is used for the deposit of sales tax revenues collected by the State Board of Equalization within each respective county (“TDA Funds”). TDA Funds are apportioned among individual transportation service entities within each county designated as local or regional transportation planning entities. TDA Funds for operating assistance are available in amounts of up to 50% of the operating budget of any individual transportation service entity, after deduction of federal grants; provided that certain TDA criteria are met.
State Transportation Assistance. Pursuant to Proposition 111, a portion of the State sales tax on gas sales are apportioned among the State’s counties on the basis of population and operator revenue based formulas. They are deposited in the Counties’ Public Transportation Account allocated by the MTC. As a consequence of the State of California Budget crisis, the allocations to AC Transit and all other transit agencies in the State were rescinded for 4 years starting in FY 2009-10. Although the California Transit Association won a lawsuit regarding the constitutionality of the STA’s funds diversion, there is significant uncertainty as of the actual eventual ability of California transit agencies to collect the proceedings from the State.
Infrastructure Bond Funds. On November 7, 2006, the voters in the State approved Proposition 1B entitled the “Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006” (“Proposition 1B”). Proposition 1B authorized the sale of $19.9 billion in general obligation bonds to fund State and local transportation projects aimed at relieving congestion, improving movement of goods, improving air quality, and enhancing safety and security of the transportation system.
Local Subsides
A.B. 1107. A 0.5% retail transaction and use tax is imposed within Alameda County, Contra Costa County and the City and County of San Francisco for transit purposes and allocated by the MTC. Pursuant to State legislation, 75% of the proceeds from this tax is allocated to BART and the remaining 25% is allocated among the District and the San Francisco Municipal Railway.
Alameda County Measure B. At the November 1986 general election, the voters of Alameda County enacted Measure B by the required majority vote. Measure B created the Alameda County Transportation Authority (the “Authority”) and authorized the Authority to impose a 0.5% retail transaction and use tax throughout Alameda County for a period of 15 years. On November 4, 2000 Measure B was reauthorized by 81.5% of the voters for an additional 20 years. The reauthorization of Measure B became effective on April 1, 2002 upon the expiration of the prior authorization and expires on March 31, 2022.
Contra Costa County Measure C / Measure J. On November 2, 2004, Measure J, a 25 year extension of the county wide 0.5% retail transaction and use tax was approved by more than 71% of the voters in the County. The authorization of Measure J becomes effective on April 1, 2009 upon the expiration of the prior authorization under Measure C and continues through March 31, 2034.
Property Taxes – General Property Tax on Assessed Valuation and Tax Collection. Taxes are levied by the Counties each Fiscal Year as of the preceding January 1 on taxable real and personal property situated within the District.
Property Taxes – Measure VV. On November 4, 2008, the voters within Special District No. 1 approved Measure VV, which supersedes the Measure BB parcel tax. Measure VV changes the terms of the parcel tax by increasing the amount of the annual tax to $96 per year and by increasing the term of the tax to 10 years from the date of implementation. The tax became effective on July 1, 2009 and terminates on June 30, 2019.
Regional Measure 2. Approved by voters in March 2004. Allocates additional bridge toll revenues for AC Transit to increase transbay bus service and night owl bus service along BART corridors. Also includes funds for increased express bus service and additional subsidies for a new Transbay Terminal in San Francisco. Sixty-five million dollars of Measure 2 funds are earmarked to implement the first phase of a Rapid bus line in Berkeley, Oakland, and San Leandro.
