OCTA Study Contemplates ’97 Staff Cuts, Bus Fare Hike

Orange County bus riders are not likely to see increases in fares or a reduction of service in 1996, despite fears that the county’s bankruptcy would force cutbacks.

The Orange County Transportation Authority, on the other hand, may dismiss 40 administrators to help reduce costs, and fares could go up in 1997.

“We think this is the best option we have available,” said Lisa Mills, the agency’s assistant chief operating officer. “The Legislature asked us to maintain adequate public transportation, and we don’t want the bus riders to suffer any loss of service.”

The projections are contained in a staff report to be sent to the OCTA Board of Directors on Monday. The document outlines options for the agency in light of the bankruptcy bailout plan which, among other things, calls for the transportation agency to turn over $38 million annually to the county beginning next year. Beginning in 1997, according to the plan, the agency will receive $23 million back each year from gas tax revenues.

In addition to the planned layoffs, the staff report recommends reallocating various resources and eliminating the funding for two major projects: the proposed Anaheim Intermodal Center--a $223-million transportation center envisioned as a joint venture involving OCTA, Anaheim and the Walt Disney Co.--and the $12-million Route 57 Extension, a private toll road planned along the Santa Ana River.

The report also calls for taking the $1.6 million spent annually on bus shuttle service for commuter rail riders from a special endowment fund, rather than the bus operating budget. About $4.5 million would be saved by postponing for at least two years the replacement of several buses that have been in service for 12 years.

Even with these moves, OCTA still may need to raise fares in 1997, when the projects that it will start having a $2.6-million annual shortfall. “If we raise fares by 10 cents,” she said, “that would generate an additional $1.6 million. Twenty cents would raise $3.3 million. Those are options that will be available for the board to consider next year.”

Other options that will probably be considered then, she said, include transferring $68 million from the operation of Orange County’s two commuter rail lines into the bus operations budget. The agency would then seek to amend Measure M--the 1990 transportation tax initiative--to free up $89 million in surplus funds to keep the rail lines running.

“That would keep the commuter rail lines running until the year 2011,” Mills said.

Next year’s layoffs, she said, will be done in phases beginning July 1, and spread over six months.

About 10 positions will probably be eliminated through attrition, according to Mills. The other 30 administrators will be given notice about mid-January “so that they can find other jobs outside the organization” or be transferred to positions elsewhere in the agency.

The measures could be somewhat mitigated should the agency receive the $221 million it has claimed in litigation stemming from the county’s bankruptcy.