San Diego MTS Board approves FY27 operating budget, maintains transit services, addresses funding challenges

The San Diego Metropolitan Transit System (MTS) Board of Directors approved the agency's fiscal year (FY) 2027 482.5 million operating budget, which maintains core transit services across the system while advancing a long-term strategy to address structural funding challenges, including continued service on all trolley lines and bus routes.

"I am proud the board adopted a budget that continues to prioritize reliable transit service for the San Diego region," said San Diego MTS Board Chair and San Diego City Councilmember Stephen Whitburn. "This budget reflects our commitment to riders while responsibly planning for future financial challenges and identifying solutions that keep public transit strong." 

The agency notes the FY27 budget builds on ongoing efforts to address a structural deficit driven by rising costs and relatively flat revenue growth. Since the onset of the pandemic, San Diego MTS notes it has balanced its budgets using a mix of one-time funds, operational savings and strategic financial adjustments. The adopted budget continues that approach while advancing a longer-term plan to stabilize funding through at least the end of the decade. 

Key elements of the FY27 budget include: 

• Maintaining existing service levels introduced in recent years, consistent with San Diego MTS Board direction to avoid reductions where possible. 

• Implementing targeted operational savings and administrative efficiencies. 

• Continuing to grow non-fare revenue sources such as advertising, energy credits and joint development opportunities. 

• Strategically using one-time funds and capital transfers to help bridge near-term funding needs. 

• Advancing planning for a potential regional transit revenue measure and other funding opportunities. 

The agency says it continues to explore a range of strategies to close projected funding gaps in future years, including pursuing new local, state and federal funding sources, evaluating fare policies and completing a comprehensive operational analysis to identify additional efficiencies.

"Public transit agencies nationwide are facing similar fiscal challenges, and [San Diego] MTS is proactively addressing them," said San Diego MTS CEO Sharon Cooney. "This budget keeps our system running strong today while laying the groundwork for long-term stability and continued investment in our riders and communities." 

In addition to the operating budget, the agency says it will continue investing in capital improvements focused on state of good repair, system reliability and infrastructure enhancements to support a safe and efficient transit network.