Meeting_Body
INDEPENDENT CITIZEN’S ADVISORY AND OVERSIGHT COMMITTEE
JUNE 3, 2026
Subject
SUBJECT: ORAL REPORT ON THE FY27 BUDGET
Action
ACTION: RECEIVE ORAL REPORT
Heading
RECOMMENDATION
Title
RECEIVE oral report on review of the FY27 Budget.
Issue
ISSUE
California Public Utilities Code Section 130105 requires Metro to adopt an annual budget to manage the revenues and expenses of the Agency’s projects and programs. The budget is the legal authorization to obligate and spend funds and to implement Board policy. It includes all operating, capital, planning and programming, subsidy funds, debt service requirements, and general fund activities for the fiscal year. The legal level of control is at the fund level. Total annual expenditures cannot exceed the final appropriation by the Board at the fund level except for capital expenditures, which are authorized on a life-of-project basis.
On May 5, 2026, the FY27 Proposed Budget was made available to the public on the Metro website, through the Records Management Center located on the plaza level of the Gateway building. Advanced public notification of the Budget Public Hearing was issued 30 days and 15 days prior to the scheduled date through advertisements posted in more than ten news publications in various languages. A public hearing of the proposed FY27 Budget was held on May 21, 2026. The Board adopted the FY27 Budget on May 28, 2026.
Equity Platform
EQUITY PLATFORM
Metro’s commitment to equity is embedded in the FY27 Budget development process through the continued application of Equity Zero-Based Budgeting (EZBB). Guided by the pillars of 'Listen and Learn' and 'Focus and Deliver,' Metro is ensuring that resource allocation directly addresses the diverse needs of riders and results in meaningful outcomes that improve access to opportunity. These pillars are acted on by continuously learning from stakeholders and using needs-based analyses to develop targeted solutions to improve mobility in Los Angeles County and the surrounding region. Public feedback is meticulously documented and integrated into the budget, shaping priorities that reflect our community's values. The Office of Management and Budget will continue to assess the budget’s impact on equity, sustainability, safety, and ADA accessibility, ensuring our system serves all residents effectively.
Leveraging the Equity Focus Communities (EFC) map, Metro has been able to understand regional equity needs and impact for low-income and zero-vehicle households and respond to them with first-last mile and community employment initiatives. Per Board Direction, the EFC Budget Assessment was introduced with the FY23 Budget. It is a geographic equity analysis to identify the extent to which Metro’s budget invests in EFCs, which comprise approximately 40% of Los Angeles County’s population. The FY23 Budget established a baseline of 67.3% EFC Benefits. The FY27 Budget exceeds this baseline with EFC Benefits of 80.4% of the budget. The budget will continue to prioritize investments that maintain essential service levels and ensure that funds will be distributed in a way that prioritizes the needs of the communities that are most reliant on the service.
Prepared_by
Prepared by: Giovanna Gogreve, Senior Director, Finance, (213) 922-2835
Cosette Stark, Executive Officer, Local Programming, (213) 922-2822
Reviewed_By
Reviewed by: Michelle Navarro, Chief Financial Officer (Interim), (213) 922-3056