The approved budget ensures the 15-minute Trolley frequencies enacted in January remain in place, MTS said. (Download budget document below; Item 20, p. 731.)
The FY26 total budgeted revenue is projected at $473.1 million, and total expenses are projected at $473.1 million, resulting in a balanced budget for FY26. “This was achieved through short-term solutions as the agency prioritizes long-term financial sustainability in the face of a structural deficit,” the transit agency reported.
The Board also approved a contract with San Diego County-based transportation consulting firm Transportation Management & Design, Inc. (TMD) to conduct a Comprehensive Operational Analysis (COA) to evaluate the bus and Trolley system and recommend “changes in routes, additions or deletions of services, and overall improvements to enhance service efficiency and effectiveness,” according to MTS.
TMD and MTS staff are slated to analyze two scenarios over the next 18 months:
- Transit service expansion if new funding sources are found.
- Service reductions if no new funding sources are found.
While the current budget is balanced, MTS said it is expecting a budget deficit of more than $120 million beginning in FY29, so “conducting a COA now is a strategic, forward-thinking action to address it within that time frame.”
According to MTS, its $163.3 million Capital Improvement Program for FY 2026 will fund 40 projects such as bus and rail state of good repair initiatives and station upgrades.
MTS said it reallocated $25 million in non-critical capital funds to support operations in FY26, with additional reallocations anticipated in FY27 and FY28. The FY26 operating budget includes usage of $62 million in operating deficit reserves, excess stimulus funds that were drawn in prior years based on eligible expenses and saved specifically for balancing future operating budget deficits.
“This year’s budget demonstrates our dedication to delivering dependable, affordable transit while planning for future needs,” MTS Board Chair and San Diego City Councilmember Stephen Whitburn said. “Through strong collaboration, we’ve approved a balanced budget that meets the needs of today’s riders and lays the groundwork for a more sustainable transit system.”
In other developments, results from the MTS 2024 Customer Satisfaction Survey show the agency “continues to exceed public transportation industry benchmarks in several key areas of service, including on-time performance, customer satisfaction, community value and safety”; also, a total of 78 Variable-Message Signs (VMS) will be added by the end of the spring to 19 stations along the Trolley’s Orange Line from the Arnele Ave. Trolley Station to the Courthouse Trolley Station.
