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A - Memo from AC Transit to City Council

San Leandro City Council
July 13, 2026

Document
A - Memo from AC Transit to City Council
Meeting
July 13, 2026
Body
San Leandro City Council
Original file
97 KB
Text extracted from the city's file for reading and search. Open the original on legistar1.granicus.com. That file is the official record.

Alameda-Contra Costa Transit District
1600 Franklin Street  Oakland, CA 94612  www.actransit.org DATE: July 1, 2026
TO: San Leandro City Council
Mayor Juan González, III; Vice Mayor Sbeydeh Viveros-Walton; Councilmembers James Aguilar, Victor Aguilar, Jr., Fred Simon, Xouhua Bowen, Dylan Boldt; and City Manager Janelle Cameron
FROM: Diann Castleberry, AC Transit Legislative Affairs & Community Relations Department
SUBJECT: AC Transit Budget & Service Update: Receive a presentation from AC Transit on agency deficit projections and potential service and workforce reductions.

Background
The Alameda-Contra Costa Transit District (AC Transit) is the largest public bus-only transit system in California. For 65 years, AC Transit has connected East Bay residents to jobs, schools, healthcare, and community life. However, rising costs have outpaced available funding, leaving the agency at a historic financial crossroads, facing a four-year, $200 million deficit beginning in Fiscal Year 2027-28.

The emergency relief funding that sustained service through the pandemic is now gone. At the same time, costs of operating transit are rising – including wages and benefits, fuel, parts, and bus production – these increases are outpacing the revenues we rely on.

A recent State of California bridge loan provides temporary relief but does not solve the ongoing lack of funding. The passage of a proposed ballot measure in November could provide funding for AC Transit to continue full service. However, without sustainable, longterm funding by December 2026, our 65-year-old transit district faces unavoidable service cuts of up to 16% and potential layoffs, impacting as many as 300 employees.

Current Status
This is an informational presentation. AC Transit representatives will provide an update on the agency’s financial outlook, including projected deficits, and possible service and workforce reductions, and will invite public input.

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