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East Bay bus agency wants
parcel tax on November ballot 

This November, East Bay residents will likely be asked to approve a five-year parcel tax for cash-strapped AC Transit. 

The tax revenues, estimated to be $7.5 million, would help offset the bus agency’s $30 million budget shortfall, transit officials said. The money would not go toward the expansion of any services, but merely help avoid service cuts, officials explained. 

Under the proposed parcel tax, property owners in northern Alameda and Contra Costa counties from Richmond to Hayward would pay an additional $24 per year. 

The agency currently runs more than a dozen routes through Berkeley and serves approximately 235,000 East Bay riders. Other than a slight dip in ridership last December, AC Transit officials say ridership has been steady this year and may be on the rise. Their problem is lack of funding. 

The proposed parcel tax is vital for preventing service cuts and maintaining the flow of traffic in Berkeley, confirmed Peter Hillier, Berkeley’s assistant city manager for transportation. 

AC Transit board members are scheduled to vote tonight on whether to put the tax initiative on the ballot. Approval is expected. 

News of the parcel tax follows fare increases for AC Transit riders approved this spring. Single fares for one-way bus rides will rise from $1.35 to $1.50 starting Sept. 1. 

Many residents in transportation-conscious Berkeley say paying a bit more for mass transit is worth it. 

“I would be willing to pay a little bit extra for the convenience,” said Amartya De, a junior at UC Berkeley. 

Others, though, say AC Transit should have foreseen the shortcoming in revenue and planned accordingly. 

Transit officials say the reason for their financial straits is unexpectedly low sales tax revenues which fund much of their operation. More than $304 in sales tax revenue was expected after Measure B passed in the 2000 general election. But with the economic slowdown, officials say the sales tax revenue simply hasn’t materialized. 

“What drove us to recommend the tax was our current revenue shortfall due to reduced tax revenues,” said Jim Gleich, deputy general manager of AC Transit. 

The agency collects 20 percent of its revenue through bus fares, with the remainder coming through government subsidies.  

Officials at the agency see the proposed parcel tax as only a short-term fix. Gleich said the agency will cover its budget for the current fiscal year but “beyond that we’re in serious trouble financially.” 

Instead of cutting services during the recent economic slowdown, as many other transit agencies have done, AC Transit opted for creative financing plans and trying to reduce expenditures. 

AC Transit is currently considering two route changes in Berkeley to make services more efficient: The agency may cut a portion of the number 9 line servicing north Berkeley and could add a number 19 line running from El Cerrito’s BART plaza to west Berkeley, city transportation officials said. 

Given the size of next year’s deficit, however, AC Transit may be forced to make some service cuts. “We can’t avoid it in perpetuity,” said Gleich. 

Berkeley’s Hillier says that AC Transit should not only get more money from locals, but from sources outside the region as well. 

“[AC Transit] should be at the top of the list for receiving financial support from the state and federal government,” he said. “It’s sad that we don’t support them more.” 

Today’s public hearing is scheduled for 5 p.m. at 1600 Franklin Street, 2nd floor, in Oakland. 

Contact reporter at chris@berkeleydailyplanet.net