Could result in reduced service
The Antelope Valley Transit Agency faces a projected $4.26 million deficit in fiscal year 2024-25, which could result in cuts to service.
The transit agency’s operating budget for the new fiscal year that starts July 1 is about $44 million. The agency has a projected $14.1 million in capital projects for a combined projected budget of $58.17 million. The agency’s projected 2025 operating revenues are about $39.81 million, with an estimated $44 million in operating expenditures.
“I’m using the ‘D’ word here in big red bold letters; there is in fact a deficit,” Chief Financial Officer Judy Vaccaro-Fry said during a presentation at Tuesday’s AVTA board of director’s meeting.
She added the agency will be able to cover the deficit with AVTA cash and resources.
The agency’s operating expenses increased about 26% from fiscal year 2023-24 to 2024-25. The 2024 operating expense was approximately $34.87 million. The agency’s capital expenses decreased about 62% from fiscal year 2024 to fiscal year 2025. The capital expenses for the current fiscal year are about $37.89 million compared to a projected $14.1 million for the new fiscal year that starts July 1.
“We are noticing a little bit of a decrease in the fare revenues that we are projecting,” Vaccaro-Fry said. “We haven’t seen the ridership bounce back on all the modes that we would like to increase that number.”
The fare revenue for fiscal year 2024-25 is approximately $2.5 million; the projected fare revenue for the proposed 2024-25 budget is $2.26 million, a deficit of about $236,000.
The proposed 2024-25 budget includes a projected $3.52 million in jurisdictional contributions from the cities of Lancaster and Palmdale and Los Angeles County.
LA County accounts for 39% of miles driven, vs. 31% for Lancaster and 30% for Palmdale, according to a breakdown presented three years ago when the agency was trying to get the county to contribute more.
“It’s not fair to the other two jurisdictions that we’re not getting the fair share from the county,” AVTA Chairman Marvin Crist said. “Now that we have a deficit of $4 million, what are we going to do about it? Because we need to ask each jurisdiction for more money and the county for far more money.”
