BART Board of Directors approves two-year budget
On June 8th, the BART Board of Directors approved a two-year budget that addresses the agency’s highly uncertain, challenging financial outlook. Although the budget is balanced for FY24, which begins July 1st, a $93 million deficit looms for FY25.
“Despite our best efforts to hold the line on expenses and grow revenues with modest fare increases, we are still facing a structural, ongoing budget gap,” said BART Board General Manager Bob Powers. “It’s a stark reminder that BART alone cannot solve the financial crisis created by the pandemic. Right now, BART needs temporary state funding to bridge the gap while we pursue a sustainable source of operating funds to help advance the Bay Area and California’s economic, climate, and equity goals.”
Federal emergency funds have sustained BART operations since the outset of the pandemic, but BART expects to run out of that funding around March 2025. After that, BART could face deficits of $300 million a year without temporary state funding.
Highlights of the budget and other Board actions:
Clipper START discount increase
The Board voted to change the means-based transit fare discount to 50% beginning in January 2024. Known as Clipper START, the Metropolitan Transportation Commission pilot program offers discounts for Bay Area residents aged 19-64 earning under 200% of the federal poverty level. Current enrollees get a 20% discount on all BART fares. Clipper START is accepted on more than 20 regional transit operators.
Fare Increase
The Board also approved two increases in fares rather than following current policy, which would dictate a single increase of 11.4% in January. Instead, the Board voted to increase fares twice over two years, by 5.5% each. The increases are tied to the rate of inflation minus a half-percentage point.
When the first increase takes effect in January, the average fare of $4.20 will increase by 23 cents. For a 12-mile trip from Downtown Berkeley to Embarcadero, a full fare will increase by 25 cents to $4.75. For a 45-mile trip from Antioch to Montgomery Street, the fare will increase by 40 cents to $8.60.
The fare increases are expected to bring in an additional $26 million in operating funds through FY25.
Budget Notes
This is the second year in which the BART Board adopted a two-year budget that combines operating and capital financial plans. The shift to a two-year cycle reflects a more strategic approach to long-term financial planning.
The total FY24 operating and capital budget is $2.6 billion, with capital funding dedicated to important rider improvements such as the Next Generation Fare Gate program, escalator replacement, Fleet of the Future train cars and Measure RR rebuilding projects.
The FY24 operating budget fully funds the September reimagined schedule to increase ridership in response to post-pandemic commute patterns and the ongoing redeployment of police personnel and cleaning staff in response to customers’ concerns.
Parking Policy
In a separate action, the Board voted to approve a new parking pricing policy that replaces an outdated policy from 2013. The new policy would allow staff to vary parking prices within a defined range depending on whether parking lots are full.
Currently, BART has plenty of parking for patrons, and fees are not expected to increase at most stations. If lots are not full, as is the case at most stations, Daily Fee prices will remain at $3.00 until 2025 and then be gradually adjusted for inflation. At stations with full lots, Daily Fee prices could be increased over several years up to a maximum of $8.00 to improve parking availability.
The new policy will bring in a modest amount of new revenue to help offset BART’s parking operating cost deficit – BART currently spends about $30M a year for parking operations and maintenance but takes in only $14M. The revenue will also help support BART’s recent investments in expanding policing and improving safety throughout the system, including in parking areas.