Feb. 23, 2009

OCTA Responds To
Bleak Budget Situation

OCTA staff members made a presentation to the Board of Directors today outlining the current financial picture for bus transit operations. As has been widely discussed, the situation is bleak – declining sales tax and a cut in state funds have left OCTA with a significant budget shortfall over the next year and a half.

If the situation remains unchanged, OCTA will need to reduce expenses by 30 percent through June 2010.  The presentation included a forecast of potential service reductions and corresponding personnel reductions for each of the next five service changes.  The current scenario would result in personnel reductions of 339 coach operators and 81 maintenance employees through June 2010.   We are hopeful this terrible situation can be avoided as we work together with our union representatives to seek additional resources to help protect jobs and provide vital bus service for our customers.

We have launched a page on the OCTA Web site – www.octa.net/budget – to provide employees and the public with the latest information.  We will continue to keep you updated on our efforts to deliver a balanced budget during these uncertain times.

Sincerely,

Arthur T. Leahy

OCTA Chief Executive Officer