Meeting_Body
FINANCE, BUDGET AND AUDIT COMMITTEE
JULY 16, 2026
Subject
SUBJECT: FY27 TRANSPORTATION DEVELOPMENT ACT (TDA) ARTICLE 8 FUND PROGRAM
Action
ACTION: APPROVE RECOMMENDATION
Heading
RECOMMENDATION
Title
ADOPT:
A. FINDINGS and RECOMMENDATIONS (Attachment A) for allocating Fiscal Year 2027 (FY27) Transportation Development Act (TDA) Article 8 funds (Attachment B) estimated at $35,546,436 as follows:
1. In the City of Avalon, there are no unmet transit needs that are reasonable to meet. Therefore, TDA Article 8 funds in the amount of $167,800 may be used for street and road projects or transit projects;
2. In the Cities of Lancaster and Palmdale, there are no unmet transit needs that are reasonable to meet; in the Cities of Lancaster and Palmdale, and the unincorporated portions of the Antelope Valley, transit needs can be met by using other existing fund sources. Therefore, TDA Article 8 funds in the amount of $8,817,477 for Lancaster and $8,288,185 for Palmdale may be used for street and road projects or transit projects, if transit needs continue to be met;
3. In the City of Santa Clarita, there are no unmet transit needs that are reasonable to meet; in the City of Santa Clarita and the unincorporated portions of the Santa Clarita Valley, existing transit needs can be met through the recommended actions using other fund sources. Therefore, $11,526,141 in TDA Article 8 funds for the City of Santa Clarita may be used for street and road projects or transit projects, if transit needs continue to be met;
4. In the Los Angeles County Unincorporated areas of North County, the areas encompassing both the Antelope Valley and the Santa Clarita Valley, transit needs are met with other fund sources such as Proposition A and Proposition C Local Return. Therefore, TDA Article 8 funds in the amount of $6,746,833 may be used for street and road projects or transit projects, if transit needs continue to be met; and
B. A RESOLUTION (Attachment C) making a determination of unmet public transportation needs in the areas of Los Angeles County outside the Metro service area.
Issue
ISSUE
State law requires that the Los Angeles County Metropolitan Transportation Authority (Metro) make findings regarding unmet transit needs in areas outside of Metro’s service area. If any unmet transit needs are identified as reasonable to meet, they must be met before TDA Article 8 funds can be allocated for street and road purposes.
Background
BACKGROUND
Under the State of California TDA Article 8 statute, state transportation funds are allocated to the portions of Los Angeles County outside Metro’s service area. These funds are for “unmet transit needs that may be reasonable to meet.” However, if no such needs exist, the funds can be spent for street and road purposes. See Attachment D for a summary of the history of TDA Article 8 and definitions of unmet transit needs.
Before allocating TDA Article 8 funds, the Act requires Metro to conduct a public hearing process (Attachment E). If there are determinations that unmet transit needs exist, which are reasonable to meet and Metro adopts such a finding, then these transit needs must be met before TDA Article 8 funds can be used for street and road purposes. By law, Metro must adopt a resolution annually that states the findings regarding unmet transit needs. Attachment C presents the FY27 Resolution. The proposed findings and recommendations are based on the results of the public hearing process and the recommendations of the Social Service Transportation Advisory Council (SSTAC) and the Hearing Board.
Antelope Valley Transit Authority Transit Service Updates
Over the past year, Antelope Valley Transportation Authority (AVTA) achieved several important milestones, including installing new media boards at the South Valley Transit Center, adding Automatic Passenger Counters with full FTA certification for the commuter fleet, graffiti film replacement at Owen Memorial Park shelters. The agency also completed quarterly audits of commuter bus stops, and a late-2025 fare evasion campaign that helped improve farebox recovery.
AVTA also finalized planning and scheduling for AV ALTA home games for the 2025 season and continues focusing on service reliability, safety, and rider experience. The agency is exploring an off-the-grid charging solution using a solar farm paired with battery storage, aiming to create a more sustainable and resilient energy source for its fleet, in collaboration with the City of Lancaster and the Federal Transit Administration.
For 2027 proposed service changes, AVTA is conducting community outreach through meetings, town councils, local events, and transit center popups to gather feedback, refine routes, improve efficiency, and support growing residential areas. AVTA continues to promote the LA Metro GoPass program. Participating institutions include Antelope Valley Union High School District, Antelope Valley College, and Palmdale Academy Charter School for the 25/26 year. Middle schools are also being encouraged to participate. During the 24/25 GoPass year, 1,690 students registered, generating 45,647 boardings across the AVTA system.
City of Santa Clarita Transit Service Updates
Over the past year, the City of Santa Clarita has continued advancing public transportation by strengthening its partnership with Los Angeles County and enhancing transit infrastructure throughout the Santa Clarita Valley. Even without requests for new service, the City expanded on-demand service, improved fixed route operations, and experienced ridership growth across local routes, on-demand trips, and dial-a-ride services.
Since March 2025, the City has made significant progress, including improving fixed route service to the Five Point development, ordering additional zero emission fuel cell buses, beginning construction of a hydrogen electrolyzer and fueling station, and adding new electric vehicles for Go! Santa Clarita. The City also received new CNG dial-a-ride buses, upgraded 26 bus stops with new amenities, and launched a unified dispatching and scheduling system for multiple transit services. Looking ahead, Santa Clarita Transit will continue pursuing funding opportunities and collaborating with regional partners to implement its Transit Development Plan and deliver efficient, high-quality service for all Santa Clarita Valley residents.
Discussion
DISCUSSION
Metro has complied with state law by conducting public hearings and obtaining input from the Social Service Transportation Advisory Council (SSTAC) regarding unmet transit needs. The SSTAC is comprised of riders representing seniors, individuals with disabilities, social service providers, and other interested parties from the North County areas.
• Attachment A presents the proposed FY27 SSTAC recommendations.
• Attachment G summarizes the recommendations made and actions taken by area transit agencies during FY2026
On May 5, 2026, the TDA Article 8 Hearing Board convened on behalf of the Metro Board of Directors to conduct the required public hearing process. The Hearing Board developed findings and made recommendations for the use of TDA Article 8 funds based on input from the SSTAC and the public hearing process.
Funds will be released to eligible jurisdictions upon:
1. Transmittal of the Metro Board-adopted findings and recommendations,
2. Transmittal of public hearing documentation to Caltrans, and
3. Caltrans approval
A delay in adopting the findings, recommendations, and the resolution contained in Attachments A and C would delay the allocation of $35,546,436 in TDA Article 8 funds to the recipient local jurisdictions.
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
Approval of this project will have no impact on Safety.
Financial_Impact
FINANCIAL IMPACT
The TDA Article 8 funds for FY27 are estimated at $35,546,436 (Attachment B). Funding for this action is included in the FY27 Adopted Budget in cost center 0443, project number 410059 TDA Subsides - Article 8. TDA Article 8 funds are state sales tax revenues designated by law for use by Los Angeles County local jurisdictions outside Metro’s service area. Metro allocates these funds based on population and disburses them monthly, once each jurisdiction’s claim form is received, reviewed, and approved.
Impact to Budget
These funds are not eligible for Metro bus and rail operations.
Equity_Platform
EQUITY PLATFORM
This State-established process requires Caltrans approval before funds can be released. Funds are allocated based on jurisdiction population, while local agencies retain control over eligible expenditure decisions. Projects funded through the TDA Article 8 program serve Metro-defined Equity Focus Communities (EFC). For FY27 approximately 67 percent of program allocations will benefit EFCs in the Antelope Valley, including the cities of Palmdale, Lancaster and unincorporated Los Angeles County. While participating jurisdictions did not identify unmet transit needs that could reasonably be met, TDA Article 8 funds support locally identified transportation improvements that help residents access employment, education, healthcare, transit services, and other essential destinations.
Public hearings were held on March 3, 2026, in Palmdale/Lancaster and Santa Clarita in both in-person and virtual formats, and on March 17, 2026, in the City of Avalon during its city council meeting. Public hearing notices were published in the Daily News, La Opinión, and local newspapers serving Antelope Valley, Santa Clarita, San Fernando Valley, Catalina Island, and Long Beach. Spanish interpreters were available if requested at all hearings, and all public hearing spaces were accessible in compliance with the American with Disabilities Act (ADA).
Outreach efforts included e-blasts, LACMTA Calendar postings, emailed flyers to North County Town Councils, mailed notices to local businesses, and outreach at the I-5 North Enhancement community meeting. A dedicated TDA Article 8 webpage and QR code linked to the online comment form were also created to improve public access and participation. Comments were accepted online, by email, and by mail.
The outreach strategy was intended to reach as many residents and transit riders as possible. The e-blast alone reached approximately 6,928 registered TAP card users in the participating regions, of which 4,029 were riders in EFCs. As a result of these outreach efforts, comment submissions increased compared to the previous year. Metro's goal is to ensure all residents in participating regions are informed of the opportunity to make their voices heard.
On March 16, 2026, staff also convened the Social Services Transportation Advisory Council (SSTAC) with representatives from senior (65 and older), disability, low-income, and community-based organizations. At this meeting, the committee discussed transit needs and suggested that existing transit needs are addressed through current funding and service.
Vehicle_Miles_Traveled _Outcome
VEHICLE MILES TRAVELED OUTCOME
VMT and VMT per capita in Los Angeles County are lower than national averages, the lowest in the SCAG region, and on the lower end of VMT per capita statewide, with these declining VMT trends due in part to Metro’s significant investment in rail and bus transit.* Metro’s Board-adopted VMT reduction targets align with California’s statewide climate goals, including achieving carbon neutrality by 2045. To ensure continued progress, all Board items are assessed for their potential effect on VMT.
The projects result from the funding adjustments presented in this report have mixed outcomes, but on a whole, most of the projects in this report will likely decrease VMT in LA County. Within this suite of projects, Metro seeks to reduce single-occupancy vehicle trips, provide a safe transportation system, and increase accessibility to destinations via transit, cycling, walking, and carpooling. Some of the projects within this status report include items that will ease congestion for cars and trucks, or expand vehicle capacity, resulting in the possibility of increased VMT. However, these projects also provide for carpooling infrastructure and reinvestment of funding towards transit projects. The projects’ multi-modal benefits may contribute to offsetting the possible increase in VMT.
While TDA Article 8 funds are distributed based on population and the outcome of the unmet transit needs process, the investments they support have a meaningful impact on travel behavior. In FY27, the Antelope Valley Transit Authority (AVTA), the City of Santa Clarita, and the City of Avalon are advancing projects that expand access to public transit, improve service quality, and reduce reliance on single-occupancy vehicles. AVTA has also enhanced rider experience and operations by installing media boards at the South Valley Transit Center, along with certifying FTA-compliant Automatic Passenger Counters. Santa Clarita modernized its operations and expanded its network by upgrading local on-demand options and extending fixed-route service to the Five Point development north of Interstate 5. Avalon, where private vehicle use is already limited, continues to enhance mobility options through improved transit access and public engagement. Collectively, these TDA Article 8-funded initiatives align with Metro’s broader VMT reduction strategy by encouraging sustainable travel choices across the county.
*Based on population estimates from the United States Census and VMT estimates from Caltrans’ Highway Performance Monitoring System (HPMS) data between 2001-2019.
Implementation_of_Strategic_Plan_Goals
IMPLEMENTATION OF STRATEGIC PLAN GOALS
The program advances several Strategic Plan Goals including:
• Goal #1: High-quality mobility options that enable people to spend less time traveling
• Goal #2: Deliver outstanding trip experiences for all users of the transportation system
• Goal #4: Transform LA County through collaboration and leadership
Alternatives_Considered
ALTERNATIVES CONSIDERED
The Board of Directors could adopt findings or conditions other than those developed in consultation with the Hearing Board, with input from the state required SSTAC (Attachment A), and through the public hearing process. However, this is not recommended because adopting the proposed findings and recommendations made by the SSTAC and adopted by the Hearing Board has been developed through a public hearing process, as described in Attachment E, and in accordance with the TDA statutory requirements.
Next_Steps
NEXT STEPS
Once Caltrans reviews and approves the Board-adopted resolution and documentation of the hearing process, TDA Article 8 funds will be allocated to the recipient local jurisdictions.
Attachments
ATTACHMENTS
Attachment A - FY27 Proposed Findings and Recommended Actions
Attachment B - FY27 TDA Article 8 Apportionments
Attachment C - FY27 TDA Article 8 Resolution
Attachment D - History of TDA Article 8 and Definitions of Unmet Transit Needs
Attachment E - TDA Article 8 Public Hearing Process
Attachment F - FY27 TDA Article 8 Comment Summary Sheet
Attachment G - Letters from AVTA & Santa Clarita Transit on Actions Taken
Prepared_by
Prepared by: Juan Miranda, Senior Manager, Transportation Planning, (213) 922-2824
Manijeh Ahmadi, Director, Budget, Local Programming (213) 922-3083
Cosette Stark, Executive Officer, Local Programming, (213) 922- 2822
Rodney Johnson, Treasurer, (213) 922-3417
Reviewed_By
Reviewed by: Michelle Navarro, Chief Financial Officer (Interim), (213) 922-3056
