SacRT trims budget; avoids service cuts planned for 2017

Written by Jenifer Nunez, assistant editor
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SacRT

A revised budget and potential operating fund source has allowed the Sacramento Regional Transit District (SacRT) to shelve plans for service cuts in 2017.

 

In April 2016, SacRT began the process and development of a plan for service changes, effective January 1, 2017, which would potentially include the reduction, realignment or discontinuation of bus routes and light-rail service totaling $1 million in annualized savings to address a budget deficit for FY 2017.

During the past 45 days, SacRT staff conducted open house discussions and received many appeals from customers imploring SacRT to not cut service. SacRT staff also carefully analyzed the feedback from board members and community stakeholders and continued to look for any potential funding sources to determine if the service reductions could be delayed or canceled.

In the past week, SacRT staff has worked closely with its funding agencies and has identified a $1 million potential operating fund source.

In addition, based on the latest operating revenue estimates, staff revised the operating budget down by $2 million. To address this structural budget deficit issue, the management team has taken the following three actions: a $270,000 decrease in all non-personnel-related cost categories, a reduction of 20 administrative employee positions and a significant decrease in annual salary adjustments for certain labor groups totaling a savings of $2 million.

Through these actions, SacRT has achieved the required amount of savings to close the budget gap and avoid major service cuts planned for January 2017.

“Our customers are our first priority,” Henry Li, SacRT’s current assistant general manager of administration and new general manager and chief executive officer, effective July 1, stated. “The resulting actions were made to minimize the impact to our riders and employees, as well as improve service quality.”

 

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