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After handing out a proverbial carrot to student riders this August – in the form of lower bus rates for youth – AC Transit swung its stick at the rest of its estimated 235,000 patrons. 

System-wide fare hikes, including the 12 bus lines that traverse Berkeley, went into effect Sunday to help offset the transit agency’s $17.6 million budget deficit. The price of an adult fare, for ages 18 to 64, increased 15 cents to $1.50. Fares for seniors went up from 65 cents to 75 cents.  

The new rates make AC Transit buses some of the most expensive in the state. The national average adult rate for a one-way city bus trip is $1.09, according to the American Public Transit Association. 

“I knew it was changing today,” said Maria who was waiting for a bus on San Pablo Avenue. “I’m not happy about it, but at least I won’t be dropping any more dimes.” 

Subscribers to AC Transit’s 10-ride book and 31-day pass will experience less severe fare hikes. The price of a 10-ride book, now an electronic pass, will increase from $11.50 to $13. 

The discount rate will go up from $5.50 to $6.50. The 31-day pass for adults will increase just a dollar, from $49 to $50, while the same pass for seniors and the disabled will go up two dollars to $15. 

Commuters taking the bus across the bay are the most adversely affected. A single transbay ticket now costs $3, up from $2.50 and more expensive than a comparable BART ride which ranges from $2.50 to $2.70. The new 10-ride transbay pass is set at $26 for adults, while the 31-day pass costs $85. 

In addition, AC Transit rolled out its new one-day pass Sunday. Priced at $5 for adults and $2.50 for youth and seniors, the pass provides unlimited rides for any one day and is good from the time of purchase until 3 a.m. the following morning. 

Students, ages 5 to 17, who make up approximately a quarter of AC Transit riders are the big winners in the recent fare changes. A single student fare dropped from $1.35 to 75 cents Sunday. 

In August, AC Transit reduced the price of the student 31-day pass from $27 to $15. In addition, after months of pressure from student advocates, the agency offered free passes to the roughly 33,000 disadvantaged students who qualify for free lunch programs in Berkeley and other cities served by the transit agency. About 2,000 Berkeley students are expected to qualify for the two-year pilot program.  

The student fare reductions are a gamble for the agency in the throes of a budget crisis. Transit officials hope the reduced student monthly pass will entice 8,900 new riders, increasing revenues and subsidizing the free passes provided to disadvantaged students. 

A combination of declining sales tax revenues, state funding and fare returns during the recent economic downturn has landed the agency in a $17.6 million budget shortfall. 

To offset the deficit, AC Transit has also initiated a November ballot measure, which if passed, will net approximately $7.5 million for the agency by slapping a $24 tax on property holders from Richmond to Hayward. The ballot initiative must be approved by two-thirds of the electorate to take effect. 

If the ballot measure fails, transit officials warn that a service reduction is likely. The agency will cover its budget for the current fiscal year but “beyond that we’re in serious trouble financially,” said Jim Gleich, deputy general manager of AC Transit during an earlier interview. 

In 2000, voters passed Measure B, a sales tax hike to help fund the agency, but according to transit officials the expected $304 million in increased funding hasn’t materialized. 

“The economy, being stalled as it is, has caused sales tax revenues to be lower than what was projected a year or two ago,” said AC Transit spokesperson Mike Mills last July.