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    1. Management

    BART outlines 7-point plan for responding to budget crisis

    Oct. 21, 2020
    The 7-point plan provides concrete steps to reduce costs annually and maximize efficiencies to address anticipates short-term and long-term deficits.
    Related To: Bay Area Rapid Transit (BART)

    Bob Powers, Bay Area Rapid Transit (BART) general manager, has developed a 7-point plan with concrete steps to reduce costs annually and maximize efficiencies to address anticipates short-term and long-term deficits quickly, equitably and strategically. 

    While BART’s daily weekday ridership has been increasing steadily for several weeks, the path to regaining ridership will be a slow climb and the COVID-19 pandemic has had a devastating impact on BART's short- and long-term operating budget shortfalls.

    As of mid-October, BART ridership hovers at 13 percent of pre-COVID levels and may not exceed 40 percent by the end of FY21. Ridership drives the operating budget because BART relies on fare revenue more than most transit agencies. About 70 percent of operating revenue comes from fares. 

    So, the 7-point plan aims to ensure BART is on the strongest fiscal footing possible.

    “The 7-point plan is a critical part of our effort to keep cost reductions as far from the riders as possible and to support our workforce,” said BART General Manager Bob Powers.

    The 7-point plan includes steps BART will take to maximize efficiency and find savings before cutting service: 

    Pursue efficiencies around contracting and other reductions to BART’s non-labor budget. 

    Continue hiring freeze; eliminate most current vacancies .

    Seek board approval to negotiate a retirement incentive program with union leadership .

    Re-assign or re-train staff wherever possible to fill critical gaps created by departures .

    Fill critical capital budget vacancies with operating staff wherever possible.

    Load shed service dependent staff to capital projects to accelerate capital program delivery .

    Explore additional cost savings measures with labor partners and non-represented employees .

    The 7-point plan will be reviewed during the Oct. 22 board of directors meeting. 

    BART’s current fiscal year funding gap is $33 million. Federal CARES Act funding, in addition to the immediate cost cutting measures BART implemented at the onset of the pandemic, has helped stabilize cashflow through Q3 of FY21.

    The savings from the 7-point plan will help BART close the current year gap and become leaner in future years, but says it must have contingency plans in case there is no more help from the federal government or other emergency aid. BART also must address long-term budget shortfalls because ridership will be impacted possibly for years to come.

    Five priorities to balance tradeoffs in service changes

    As part of BART's contingency plans, it is considering a number of scenarios and options. Some include closing some stations and closing on the weekend. This is something BART says it will fight to prevent and will continue to advocate for emergency funds and work with labor partners to find cost savings to prevent cutting service.

    The five priorities to balance tradeoffs in service changes include:

    • Ridership: How can BART maximize resources to attract more riders as people return to work and make transportation decisions?
    • Financial: What service is the most cost effective for BART’s limited budget while minimizing impacts to labor?
    • Equity: How can BART minimize impacts to protected populations?
    • Capacity recovery How responsive is the service plan in preserving the capability and expertise necessary to scale-up to assist in the economic recovery of the Bay Area as counties re-open and ridership potential grows?
    • Health Guidance How well do service levels meet public health guidelines and aid in regaining confidence from riders and employers contemplating bringing workers back into the office?

    BART says it has consistently taken a data-driven, transparent approach to service changes in response to the COVID-19 pandemic. Over the coming weeks, BART staff will continue to cost out savings achieved from the 7-point plan and various service scenarios. Staff will provide an update to the board of directors on Nov. 19 when staff will review a preferred service plan that would take effect in February 2021.