"The ATN, operating since 2002, had been facing significant budget shortfalls in recent years and was struggling to maintain solvency. In her preface to the ATN fiscal year 2025-2026 budget transmittal, CEO Diana Kotler listed significant challenges to the network, including "stagnant revenues and rising day-to-day operational costs." "ATN continues to challenge the often-unrealistic expectation that a transit agency can simply identify new 'revenue sources' to resolve its economic difficulties," she added."
"The ATN had been relying on funding from the Anaheim Tourism Improvement District, which derives income from hotel taxes. On Jan. 16, ATN interim Executive Director Linda Johnson wrote a letter to the Anaheim Tourism Improvement District requesting an additional $2.5 million to "address projected budget shortfalls during the months of February and March, 2026." Despite the decision to shutter the service, the Improvement District also approved that $2.5 million in funding to keep the buses running for the next two months."
ATN, which has operated since 2002, will wind down operations after prolonged budget shortfalls and solvency struggles. The network faced stagnant revenues and rising operational costs, according to its fiscal transmittal and leadership statements. ATN sought additional funding from the Anaheim Tourism Improvement District, requesting $2.5 million to cover projected shortfalls for February and March 2026. The Improvement District approved $2.5 million to sustain bus service for two months despite the closure decision. The suspension of ATN services will reduce transit options for resort employees, budget-minded guests, and tourism-focused businesses, which are now seeking alternatives.
Read at SFGATE
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