MTS Passes $473.1M Balanced Budget, Faces Possible Future Shortfalls

SAN DIEGO, CA — The Metropolitan Transit System's Board of Directors Thursday approved a $473.1 million budget for the next fiscal year, fully funding current service levels on all four trolley lines and 92 bus routes.

The approved budget continues scheduled 15-minute trolley frequencies enacted in January 2025.

"This year's budget demonstrates our dedication to delivering dependable, affordable transit while planning for future needs," said MTS Board Chair and San Diego City Councilman Stephen Whitburn. "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."

According to the transit agency, the balanced budget was achieved by using short-term solutions to try to prioritize long-term financial sustainability. These solutions include using $62 million in reserves and reallocating non-critical funds.

The MTS Board also approved a contract with San Diego County-based transportation consulting firm Transportation Management & Design to conduct a comprehensive operational analysis -- a thorough evaluation of the bus and trolley system to analyze efficiency.

Over the next 18 months, the company and MTS will either look for expanding transit service if new sources of funding are found, or service reductions if they are not found.

"While the current budget is balanced, MTS is expecting a budget deficit of more than $120 million beginning in FY 2029," a statement from the transit agency read. "Conducting a COA now is a strategic, forward-thinking action to address it within that time frame."

In Fiscal Year 2026, MTS' $163.3 million Capital Improvement Program will fund 40 projects, including standard use bus and rail repairs, station upgrades and more.

— City News Service