Meeting_Body
FINANCE, BUDGET, AND AUDIT COMMITTEE
NOVEMBER 21, 2024
Subject
SUBJECT: PREPARATION FOR INITIATING THE FY26 BUDGET DEVELOPMENT PROCESS
Action
ACTION: ORAL REPORT
Heading
RECOMMENDATION
Title
RECEIVE oral report on the preparation for initiating the FY26 budget development process.
Issue
ISSUE
This report will give an assessment on the key developments in the cost growth drivers for Metro Transit since the March 2024 Special Board Workshop. This, along with an assessment of sales tax revenues, will be incorporated in the near-term outlook in January as Metro advances its preparations in developing the FY26 Budget.
This year’s annual budget development process will aim to address some of the critical challenges raised during the workshop and lay the foundation for the implementation of the Equitable Zero-Based Budgeting (EZBB) process.
Equity_Platform
EQUITY PLATFORM
As we move forward with the development of the FY26 Budget, our commitment to equity will continue to guide our approach and decisions. While addressing public safety, cleanliness, system expansion, labor equity, and environmental sustainability, we strive to create a transit system that is not only efficient and safe but also inclusive and equitable for all Los Angeles residents and riders. In the coming months, as we look at our seven cost drivers, we will make sure to consider impacts, especially to riders and marginalized communities, and seek options that maximize benefits for them.
Additionally, Metro’s EZBB processes will undergo enhancements following the recent awarding of a contract for an Agency-wide Budget Equity Assessment. The assessment will refine Metro’s budget tools and process to better incorporate both procedural and distributional equity considerations, extending beyond the analysis of impact or proximity to Equity Focus Communities (EFCs).
Prepared_by
Prepared by: Irene Fine, Senior Executive Officer (213) 922-4420
Michelle Navarro, Senior Executive Officer Finance, (213) 922-3056
Reviewed_By
Reviewed by: Nalini Ahuja, Chief Financial Officer, (213) 922-3088
