Projected $15-million budget deficit looms over Valley Transportation Authority

(KRON) — The Santa Clara Valley Transportation Authority faces an operating deficit close to $900,000 in 2026 and a ballooning deficit of nearly $15 million by 2027, the agency says.

The VTA is currently looking at a number of options to fix its budget issues, including a hiring freeze, VTA spokesperson Stacey Hendler Ross told KRON4.

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VTA is unique in that 80% of its budget comes from sales tax, Ross said. When sales drop in Santa Clara County, so does the agency’s funding.

“We’re trying to avoid layoffs,” Ross said. “We’re trying to avoid service cuts, and there are ways we can do that, and that’s what we’re pursuing now.”

Watch KRON4 reporter Jack Molmud’s full report in the video above.