advertisement

---

The state of California has eliminated transit funding for the coming fiscal year, sales tax revenues are plunging and ridership is beginning to dip. That's why Bay Area Rapid Transit (BART) is facing a $54 million budget deficit in FY2010.

To make up a portion of the shortfall, the agency has proposed cutting expenses by $15.5 million through service modifications and budget adjustments. BART also hopes to generate $14.5 million in additional revenue through a 10 percent fare increase to take effect July 1 (which would replace a  6.1 fare increase already scheduled to take effect Jan. 1, 2010) and parking fee increases.

The budget also calls for wage freezes for union workers, whose labor contracts expire June 30.

However, the budget still would have a deficit and require "additional difficult decisions to close the remaining gap," BART officials said in a prepared statement.

The board currently is discussing the preliminary operating budget and is expected to approve a spending plan in June. BART's next fiscal year begins on July 1.