Meeting_Body
MEASURE M INDEPENDENT TAXPAYER OVERSIGHT COMMITTEE
JUNE 4, 2025
Subject
SUBJECT: ORAL REPORT ON THE FY26 BUDGET
Action
ACTION: RECEIVE ORAL REPORT
Heading
RECOMMENDATION
Title
RECEIVE oral report on review of the FY26 Budget to support discussion on the effective and efficient use of funds.
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 April 30, 2025, the FY26 Proposed Budget was made available to the public on the Metro website, through the Records Management Center and on the plaza level of the Gateway building. On April 15, 2025, advanced public notifications of the Budget Public Hearing were issued through advertisements posted in more than ten news publications and in various languages. The Board approved the FY26 Budget at the public hearing held on May 15, 2025.
Equity Platform
EQUITY PLATFORM
Metro’s commitment to equity is embedded in the FY26 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 that 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 FY26 Budget exceeds this baseline with EFC Benefits of 79.2% 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 who are most reliant on the service.
Attachments
ATTACHMENTS
Attachment A - FY26 Budget Presentation
Prepared_by
Prepared by: Cosette Stark, Executive Officer, Local Programming, (213) 922-2822
Michelle Navarro, Senior Executive Officer, Finance, (213) 922-3056
Reviewed_By
Reviewed by: Nalini Ahuja, Chief Financial Officer, (213) 922-3088