Keeping the East Bay
Moving
Presentation to the Alameda City Council
Sarah Syed, AC Transit Board Director, Ward 3
Salvador Llamas, General Manager/CEO
09/15/2026
2 AC Transit At a Glance
• California’s largest
public bus-only system
• 2023 Outstanding Public
Transportation System
Award
Serving the East Bay
since 1960
$606.3M
operating budget
364
miles
6 facilities in 4 cities:
• Oakland (3)
• Emeryville
• Hayward
• Richmond 2,266 Employees
13 cities and 8 unincorporated
communities in Alameda
and Contra Costa counties
Serving 3+
million riders
monthly
Connecting to
16 transit systems
Service area:
65% of riders:
low-income
75% of riders:
people of color
3 Current Ridership
141,000 Weekday
162,559 Saturday & Sunday
9,538 Daily Weekday Transbay
30,000 Student Trips Every
School Day
Providing 40 Million
Annual Rides
(April 2026 data)
4 Driving the East Bay Economy
Source: The American Public Transportation Association (APTA) A Workforce-First
Employer
Investments in
service, maintenance,
and capital projects
support over
5,100 Jobs
$604
million
in local wages
fuel the region’s
economy
An East Bay
Economic Engine
$1 billion
Local Business Sales
5 National Leader in Clean Transit
25 Years of Zero Emission Leadership
Investing in
communities
that depend
on transit
58 zero emission
buses (ZEBs)
(28 battery electric +
30 hydrogen fuel cell)
The nation’s first Zero
Emission Bus University
(ZEBU): the future of
workforce development
Awarded $40M in
federal grants to
help make ZEBU – in
Hayward – a reality
ZEBU Workforce Partnership
A first-of-its-kind transit-college
collaboration with Chabot
College & union (ATU Local 192)
6 Investing In Our Communities
Programs that put riders first
EasyPass
• Unlimited rides, one pass
• 4.7M Annual Trips
Deeply discounted annual passes for
employers, colleges, and residential
communities.
Clipper START
Half-price fares for riders who
need it most
50% off every trip for income-eligible
adults across Bay Area transit.
Regional Network Management
Coordinating transit priority across
the Bay Area
Working with regional partners to make
buses faster and more reliable across major
corridors.
Realign
Right-Sizing Our Bus System
Redesigned 104 lines to match
today’s ridership, improve
connectivity, and boost efficiency.
Onboard camera technology
encourages safer driving
around buses.
Bus Only Lanes & Bus
Stop Enforcement
Safety Tech
AC Transit Riders Depend on Us More Than Ever
7 Sources: S.F. Chronicle, June 29, 2026; MTC 2023–2024 Transit Passenger Snapshot Survey. • Higher-income commuters are riding transit less often. • Lower-income riders still rely heavily on transit for daily needs.
• Over 60% of AC Transit riders earn under $50,000.
• 70% of Bay Area transit riders earn under $100,000.
• 65% of Bay Area transit riders had no household vehicle available for their trip.
East Bay riders with the fewest transportation options
would bear the brunt of possible service cuts.
Strengthening Fare Compliance
Every fare supports service
Following the first fare increase in six years, a
second arrives July 1, 2026, paired with a
campaign on the importance of paying the fare
and reducing evasion through fare compliance.
2026 State Audit Report
Validated by California’s State Auditor
AC Transit and five other East Bay transit agencies
are already working together well across the
region. The real problem is mounting fiscal deficits
that threaten service.
SB 63 Financial Efficiency Review
Independent review confirms
we’re controlling costs
Independent review confirms average annual
savings of $33 million since FY20.
Disciplined Financial Management.
Strong Credit Rating.
S&P Global Ratings: AA+
One of the highest credit ratings, demonstrating
a very strong ability to meet financial obligations.
8 Accountability and Oversight
Making every taxpayer dollar count
• Emergency relief funding that sustained service
through the pandemic is now gone
• Operating costs — wages and benefits, fuel,
parts, and bus production — are rising faster
than revenues
• Flat regional sales tax revenues
Structural Deficit & Mitigations
9 Financial Outlook
What’s Behind Our Budget Deficit?
Bus cost increase:
2023–2025
+14%
Bus
parts
+35%
Cost of
buses
+28%
Fuel
Structural Deficit & Mitigations
10 Financial Outlook
Smart Cost-Cutting
Every department is tightening spending
$9M+
in savings
delivered in
FY 26
• Hiring limited to critical roles that directly support service • Temporary employees scaled back — saving up to $2M
each year
• Brought outside professional services in house
• Partnered with other agencies to buy goods and services for less
• Temporary pension payment plan reduction approved for FY 2026–27
11 If New Funding Doesn’t Materialize
$200M, Projected Four-Year Deficit
16%
Bus Service
Potential loss of 300
jobs and cuts to 1,500
paratransit trips.
12 Potential New Funding & Use of Bridge Loan
• SB 63 authorizes a 5-county sales tax measure: 0.5% in Alameda, Contra Costa, San Mateo and Santa Clara and
1% in San Francisco
• If the measure is approved by voters, AC Transit receives $52M annually
• Would provide funding for other transit operators and local projects prioritized by each county
• Would preserve current bus service levels
• $590 million loan offers short-term
relief
• AC Transit will receive $55 million
• The loan covers most of our $60
million deficit in FY26-27 allowing
us to maintain current service
levels into the coming fiscal year
Regional Transit Bridge LoanNovember 2026 Ballot Measure 13 Why Plan for
Service Reductions?
• Protect the investments we’ve made
• Continue to use tax dollars wisely
• Deliver the best service we can in the
worst-case scenario
• Protect as much bus service as possible
Guiding Principles
• Maintain the Realign network
• Minimize complete service eliminations
• Focus on span and frequency reductions
• Restructure high-cost services
• Service impacts proportional across
bus network
Protect as Much as Possible
Plan for the worst, hope for the best
14 Proposed Contingency Service Plan
Primary Route Network
The “backbone” of the
network is protected
Lines 1T, 6, 9, 18, 40, 51A, 51B, 52, 57,
shared 72/72M/72L:
• Preserved at 15 minutes or better on weekdays
Most other “backbone” lines:
• Daily service with hours no less than 6:00 a.m.–10:00 p.m. • Every 30 minutes in line with service standards
• 93% of bus lines remain unchanged
15 What This Means For Alameda
Proposed Contingency Service Plan
Line 19: Line eliminated due to low ridership.
Line 30: Frequency reduced to 40 mins. After 7:00 p.m., only operates on Park St/Fruitvale Ave corridor.
Line 31: Frequency reduced to 40 mins. Hours of operation reduced to 6:00 a.m. – 7:30 p.m.
Line 51A: No proposed reductions.
Line 96: Frequency reduced to 40 mins on weekdays and 60 mins on weekends.
Line 851 (Owl): No proposed reductions.
Line O: Operate peak direction service only. Shorten route to run between SF and Bridgeside Shopping Center via Broadway, Santa Clara Ave, and Webster St. Eliminate service on weekends.
Line W: Eliminate one westbound morning trip and four eastbound afternoon trips.
New Alameda East End Line: New line with all-day service every 60 minutes running between Fruitvale BART and South Shore Shopping Center via Fruitvale Ave, Fernside Dr, High St, Encinal Ave, and Park St. 16 The Road Ahead
Date Service Reduction Step
Aug 12, 2026 AC Transit Board Sets Public Hearing
Oct 14, 2026 Public Hearings and Open House
Nov 3, 2026 General Election
Nov 18, 2026
(if needed) AC Transit Regular Board Meeting
Dec 9, 2026
(if needed) AC Transit Board Approval
Jun 13, 2027
(if needed) Implement Service Reductions
17 Share Y our Feedback!
Find us on Social:
actransit.org
Scan the QR Code to learn more about our Proposed Contingency Plan Email: [email protected] Visit: www.actransit.org/contingency-plan