Creative Commons/Monica's Dad

An AC Transit bus in Berkeley

When AC Transit begins wrestling with its budget in December, it will face a $13 million deficit, according to board member Chris Peeples. That could mean more cuts and more battles with unions come 2011.

The struggling East Bay bus agency has whittled down service and barely averted more draconian cuts in December after an arbitrator settled a labor dispute with the bus drivers' union. Peeples suggested that more cuts could be on the way to close the budget gap.

“Part of it is negotiating with AFSCME,” said Peeples, referring to the managers' union. “We’ve got to look at some more service adjustments, but this time we’ll be able to do it with a scalpel instead of an axe.”

AC Transit cut deeply into bus service this year to close its budget deficit: 7.8 percent in March, 7.2 percent in October and another 6 percent that was scheduled for mid-December. The December cuts would have meant a 50 percent reduction in weekend service.

Those cuts were averted earlier this month when an arbitrator settled a labor dispute with the bus drivers union, Amalgamated Transit Union Local 192. Following a nasty court battle, the arbitrator ruled that union members must make contributions to their health care plans – and ordered some work-rule changes.

The new agreement with the bus drivers will save AC Transit $38 million over the next few years, but the district still faces the problem that it's not bringing in enough money through local taxes or outside funding.

“This budget that we’re going to do is going to assume that funding from the feds and the state is completely dry,” said Greg Harper, another AC Transit board member, and that sales tax revenues, bridge toll revenues and property tax revenues aren’t going to be there.”

Alameda County voters approved a measure in the November election that would give some funding to AC Transit. Measure F will tack on $10 to vehicle registration fees, raising about $11 million a year for fixing roads and public transit. Harper said that $2.5-$3 million could come to AC Transit from the measure, which may be held up in court.

AC Transit will begin working on the budget in December. The board will have one new member, the young Mark Williams, who was elected in November.