Redwood Coast Transit Authority flags $200,000 structural deficit, approves keeping winter schedule

The Redwood Coast Transit Authority on Monday reviewed its preliminary fiscal year 2026–27 budget and identified a near‑term operating shortfall of roughly $200,000 if one‑time pandemic reimbursements are not available.

A staff presenter told the board the agency has benefited from a $2.2 million COVID relief allocation, drawing about $400,000 per year through a federal reimbursement mechanism, but those funds are expected to be claimable for only about two more fiscal years. With that $400,000 included, the preliminary budget shows a modest increase in reserves; without it, staff said the system faces a structural deficit in the low hundreds of thousands.

The staff presenter emphasized that the largest single pressure is a decline in State Transit Assistance (STA) — an excise‑tax‑based revenue tied to diesel sales — which the presenter said has fallen from about $500,000 two years ago to roughly $254,000 in the current projection.

Board members pressed staff on whether proposed staffing consolidations with the contractor would result in layoffs; staff said the details are to be determined and would be reported at a future meeting. The board also asked whether the state has a plan to replace STA revenue; staff said discussions have occurred in Sacramento but no concrete replacement plan was identified.

To reduce costs, staff proposed rolling over the winter schedule through the summer — deferring the customary summer service enhancement that adds a third daily trip on Route 20 and extra midday trips on Route 199 — which staff estimated would save about $70,000. The presenter said further modest cuts identified in the short‑range transit plan could yield an additional $75,000 or more if needed.

The board voted to approve continuing the winter schedule through the summer period as presented. City Alternate Tinkler, Director Short and Chairman Alman recorded “yes” votes.

The presenter noted capital activity remains robust: multiple new buses have arrived recently and the authority continues to pursue dedicated capital grants and a charging‑infrastructure project at the yard. Still, several recent bus invoices and required local matches for vehicle purchases will draw on reserves when recorded.

Staff said no fare increases are baked into the current preliminary budget. The presenter said staff will return with more detailed options for balancing operations and protecting capital reserves at an upcoming meeting.

The board did not take additional action on budget items at the meeting; staff will bring further proposals for board consideration before adopting the final budget in time for the July 1 fiscal year start.