BART Board adopts Alternative Service Plan outlining budget balancing details

On Thursday, Feb. 26, the BART Board of Directors adopted an Alternative Service Plan outlining specific budget balancing details to solve a $367M deficit for the next fiscal year if no new funds become available to BART. BART is facing a structural deficit of $350M to $400M because ridership is still down 50% compared to pre-pandemic levels and BART's current funding model relies heavily on passenger fares.

The plan includes specific cuts and financial strategies needed to balance both the FY27 (July 1, 2026-June 30, 2027) and FY28 (July 1, 2027-June 30, 2028) budgets. The plan includes service cuts, station closures, fare increases, a 40% reduction in system support services, laying off 1,200 employees, and a series of deferrals and one-time resources. The plan does not name specific stations to be closed and makes clear the BART Board will be responsible for all decisions on station closures.

BART has already made budget cuts across all departments and instituted a series of cost controls, including rightsizing service, labor savings, operational efficiencies, and reducing BART's office space footprint. At the same time, BART has also worked to increase revenue by installing new fare gates, leasing out BART parking lots, and offering new fare products such as Clipper BayPass. View a detailed list of cost savings implement by BART at bart.gov/fiscalcliff.

Alternative Service Plan Details

To take place in January 2027:

• 3-line service (Yellow, Blue, and Orange line service only, with limited peak service in only the peak commute direction on the Red and Green lines).
• 30-minute frequencies on every line.
• Closing at 9pm seven days a week.
• This service plan represents a 63% reduction in train hours.
• 30% fare and parking fee increases (the estimated average fare would increase from $4.98 to $6.38).
• Target approximately $30M in savings over 6 months from non-service budget reductions to fleet and non-fleet maintenance, police, cleaning, and administrative support functions.
• Continue deferrals of priority capital allocations and retiree medical contributions.
• Balance remainder of FY27 with one-time resources and financial deferrals.

Following the January 2027 cuts, staff will continuously assess ridership and revenue impacts and the performance of all District functions to determine if further reductions can be safely and legally implemented.

To take place in July 2027 if feasibly safe:

• Target over $175M in annual cost reductions through a cumulative 70% reduction in service hours:
• Maintain 3-line service, 30-minute frequencies on each line, closing at 9pm.
• Close up to 15 stations and/or up to 25% of system track miles.
• The BART Board will be responsible for all decisions on station or line segment closures.
• Increase fares and parking fees up to a cumulative 50%. The estimated average fare would increase to $7.26.
• Target annual operating expense savings of more than a cumulative $130M from non-service budget reductions to fleet and non-fleet maintenance, police, cleaning, and administrative support functions.
• Continue to defer retiree health contributions; defer most remaining capital allocations.

Contingency:

• If at any point it is determined BART can't safely or legally operate with available resources, stop passenger service,
• Use existing District tax revenues to secure system assets.
• Work to determine system's future.

Use of the State Loan

BART can't use state loan money to avoid station closures and service cuts if no new revenue becomes available because without new revenue, there is no way to pay the loan back. The state loan primarily helps with cash flow if a November 2026 transit funding measure is successful. It is a bridge loan that gives BART reassurances money will be available to continue to deliver the best service possible until the sales tax dollars from the successful ballot measure become available for BART's use. This is projected to happen in July 2027 but could take longer. If a funding measure succeeds, BART will use $97M in loan funds to help balance the FY27 budget.