Meeting_Body
FINANCE, BUDGET, AND AUDIT COMMITTEE
SEPTEMBER 18, 2025
Subject
SUBJECT: ADDRESSING THE FISCAL CLIFF - WORKPLAN FOCUS AREA: REVENUE GENERATING OPPORTUNITIES
Action
ACTION: RECEIVE AND FILE
Heading
RECOMMENDATION
Title
RECEIVE AND FILE report on Workplan Focus Area: Revenue Generating Opportunities
Issue
ISSUE
At the April 2025 meeting, the Chair of the Finance, Budget, and Audit Committee, Director Sandoval, asked staff to develop a workplan for addressing the fiscal cliff. This report is one of the deep dives to help inform the Board of some Revenue Generating Opportunities that can help mitigate the projected fiscal cliff in FY27.
Background
BACKGROUND
Metro's prior year near-term forecast signals financial challenges in Metro Transit operations with a cumulative financial gap in Metro Transit of $100 million by FY27, that grows to $2.3 billion by FY30 due to major cost drivers projected to outpace sales tax revenue growth under current economic assumptions. Metro will be updating the Near-Term Forecast in January 2026. In addition, Metro is faced with large increasing capital project costs which further aggravate the financial challenges ahead.
Discussion
DISCUSSION
Metro has various programs to enhance mobility within Los Angeles County by offering travelers various options for their daily commute. In addition, Metro has assets that have the potential to generate additional revenues to support our system. As Metro faces projected deficits, it is evaluating opportunities to leverage assets and generate revenues. This report covers the following revenue-generating opportunities that could yield additional revenues for our system, such as:
* Congestion Pricing
* Real Estate & Joint Development
* Advertising
* Fares
* ExpressLanes
* Parking Management
Congestion Pricing
A form of road pricing has been in operation in LA County since 2012 with Metro's ExpressLanes network. The Vision 2028 Strategic Plan calls for Metro to ...
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