The BART Board of Directors met Thursday to consider ways to head off a looming $375 million operating deficit expected by fiscal year 2027.<\/p>\n
BART staff presented a preliminary fiscal year 2027 budget that included spending cuts and new revenue streams – contingent on voter approval of a regional sales tax measure in November.<\/p>\n
BART is estimating a $375.4 million operating deficit for fiscal year 2027. Despite strong year-over-year ridership recovery – up 11.3% in 2025 over the prior year – the agency continues to lag behind 2019 levels.<\/p>\n
The proposed budget was created with the assumption that the agency would continue with current service levels, continued ridership growth, and the successful passage of Senate Bill 63 — a regional sales tax measure that would bring in additional operating revenue for Bay Area public transit agencies.<\/p>\n
BART Budget Director Christopher Sims said the agency is working to balance the budget through $233 million in new revenues and $142 million in expense reductions. Key actions include eliminating 63 vacant positions and non-labor cuts totaling $21.6 million, deferring capital funding and Retiree Health Benefit Trust contributions without impacting individual benefits, and a one-time $97.9 million borrowing to bridge costs until new consistent revenue flows.<\/p>\n
Sims said an estimated $74.4 million would be made available if the sales tax is passed but would not arrive until April 2027.<\/p>\n
BART is facing a budget deficit after pandemic-era federal grants are set to expire this summer. Without new sources of operating revenue, the agency is facing a yearly $350-400 million shortfall.<\/p>\n
If left unaddressed, the budget deficit could force BART to slash services and close stations across the Bay Area.<\/p>\n
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