As DASH Bus reels from a $3.3 million overspending error in the last fiscal year, the Alexandria transit agency is considering service changes to mitigate current budget challenges.
On Wednesday (Oct. 14), the DASH Board of Directors pre-authorized a package of service cuts. The changes are intended to address a $2.4 million shortfall in the current operating budget.
If the board gives final approval on Nov. 12, changes would take effect on Jan. 31, 2027.
The package under consideration would remove an Old Town segment from Line 31, remove a West End segment from Line 30, realign Lines 33 and 34 with 60-minute off-peak service, and remove midday service on Line 102.
The second scenario not advanced by the board would have covered the shortfall and a $1 million repayment to the city to cover part of the budget overrun. That scenario would have made all of those changes plus eliminating Lines 102, 103 and 104 plus reducing weekday frequency on Line 30.
The board’s motion did, however, direct DASH to pursue other funding opportunities combined with cost-cutting measures that could support the $1 million repayment to the city.
DASH had ended the 2026 fiscal year with a $40.57 million budget — $3.3 million more than the $37.25 million budget. DASH CEO Josh Baker told the transit agency’s board a spreadsheet error in its Munis data system had “understated the expenditures and hid the overspending earlier in the year.”
“That should not have happened, and we have corrected it,” Baker said. “We now reconcile the Munis every month with independent review and monthly meetings with the city’s finance team.”
The city paid for the overspending with $3.3 million from a transit funding surplus. At a Sept. 23 work session, City Manager Jim Parajon asked DASH to repay the city $1 million in this year’s budget, while the remaining $2.3 million would be repaid in a to-be-determined schedule.
Maintenance accounted for the largest share of overspending — $1.38 million — followed by $700,000 for operations, $650,000 for capital equipment and $580,000 in administration and transitwide spending.
Increased diesel fuel prices also put pressure on the DASH budget. Baker said the 2027 fiscal year budget faces a $2.49 million shortfall even after $3.45 million in cost savings before considering service cuts. The cost savings largely came from labor costs such as a hiring freeze, as well as deferring capital equipment and facility projects and outsourcing bus repairs.
With the $1 million repayment to the city, that shortfall increases to $3.49 million.
“I will confess that this is probably one of the most consequential and challenging board meetings that I’ve ever prepared for in my nine years at DASH,” Baker said.
The budget troubles come as DASH posted a record 6.9 million riders in the 2026 fiscal year. DASH, which has been fare free since September 2021, saw ridership increase 52.3% from the 2023 to 2026 fiscal years.
With the board pre-authorizing the proposed service cuts, a public feedback period runs through Nov. 10. The board will hold a public hearing for final approval on Nov. 12.
