February 10, 2009


Dear Fellow Employee,

During this global economic crisis, we all know the grim news – record job losses across our nation and state. In Orange County, we too are experiencing dramatic financial impacts.

There simply isn’t an easy way to say it, but the outlook is getting worse. America’s unemployment rate skyrocketed to 7.6 percent – the highest level in more than 16 years. The U.S. Labor Department reports that Orange County – with 41,400 eliminated positions – ranks fifth in total job losses last year among the nation’s 32 metropolitan areas.

At the Orange County Transportation Authority (OCTA), we continue making necessary cuts and exploring all options to deliver a balanced budget and still try to avoid layoffs. I plan to recommend to the OCTA Board of Directors that we eliminate salary increases and special performance awards for all administrative employees starting July 1, 2009.

The current federal economic stimulus bill contains funds for bus operations to help offset cuts from state funds. The Board of Directors also could authorize the use of OCTA reserves to help fund bus operations. These actions will certainly help, but will not solve the gaping budget shortfall.

As you know, we asked leaders of our two unions to come to the table to discuss different options to help us protect jobs. Unfortunately, the union that represents most of our employees declined our offer. We will continue to urge union leaders to join us as we roll up our sleeves to help prevent job losses at OCTA. I am confident we can overcome these mounting financial challenges if we work together to come up with common-sense solutions with a single purpose – to balance the budget while protecting jobs.

I know many are concerned about their future at OCTA, and I have heard some express fears about potential layoffs. Many are willing to make sacrifices – even suggesting ways to cut costs and stretch tax dollars while still providing quality service that our customers need. I appreciate your concern and care for your fellow employees and your willingness to make sacrifices for the good of all in order to protect jobs.

I will do everything in my power to get us through these troubling times. But we must work together. We are evaluating your many cost-cutting suggestions, and we urge you to continue to provide us with your ideas and thoughts.

Please continue to share your comments with your union representative or administrative manager and ask them to join us in working together through these grave challenges.

I have included a letter to the Teamsters Local No. 952, encouraging them to work with us to protect jobs. As this issue develops, I will continue to honor my promise to provide you with updates and to keep you informed as we confront these challenges together.

Sincerely,

Arthur T. Leahy
Chief Executive Officer