Valley Transportation Authority’s latest draft budget has raised concerns among community members and local officials. The organization is staring at multi-million dollar deficits and dwindling reserves as ridership sits 40 percent below its 2015 peak. An 18-day strike that recently left hundreds of LAHS students scrambling for rides highlights the pressure of rising labor costs on the agency.
Even with an agency‑wide hiring freeze and a plan to leave 20 percent of office jobs vacant, VTA projects a $900,000 deficit in Fiscal Year 2026 and $14.9 million in 2027 due to the increase in wages and decrease in sales tax revenue.
Over 80 percent of VTA’s revenues come from various sales‑tax measures in Santa Clara County. Wages, pensions, and employee benefits eat away almost its entirety. Since the majority of VTA’s revenue comes from sales tax, some taxpayers are concerned about whether the organization is allocating those funds effectively.
Los Altos High School students already felt the squeeze this spring. When Amalgamated Transit Union Local 265, a local labor union, walked out on March 10, every bus and light‑rail line stopped for 18 days until a court-ordered service restored them on March 28. During that pause, hundreds of students were forced to walk, bike, or ride-share to reach campus.
For now, VTA promises no service cuts. Instead, it will delay projects and keep hiring tight. Expect deeper debates at VTA’s June board meeting.
