California Code, Public Utilities Code - PUC § 99268.19

If fare revenues are insufficient to meet the applicable ratio of fare revenues to operating cost required by this article, an operator may satisfy that requirement by supplementing its fare revenues with local funds and calculating all free and reduced transit fares at their current full retail value. As used in this section, “local funds” means any nonstate grant funds or other revenues generated by, earned by, or distributed to an operator.