Meeting_Body
FINANCE, BUDGET, AND AUDIT COMMITTEE
APRIL 16, 2026
Subject
SUBJECT: FISCAL YEAR 2027 BUDGET DEVELOPMENT STATUS UPDATE
Action
ACTION: RECEIVE AND FILE
Heading
RECOMMENDATION
Title
RECEIVE AND FILE the Fiscal Year 2027 (FY27) Budget Development Status Update.
Issue
ISSUE
This report continues a series of monthly updates on the FY27 Budget development process, culminating in a planned May 2026 Board Adoption. The report focuses on the key areas of Metro's Transit Operations and Maintenance (O&M) Program and Transit Capital Improvement Program (CIP) to maintain transit infrastructure in a state of good repair. These two programs combined make up 37% of Metro's total budget.
Additionally, an overview of Congestion Management, General Planning and Programs, and Oversight and Administration, which make up about 5% of Metro's total budget are included to complete the program budget discussions for the FY27 Budget development process.
A recap of the latest update regarding Metro's comprehensive budget outreach efforts is also included in this report.
Background
BACKGROUND
This preliminary budget serves as the annual expenditures required to advance Transit Operations' plans, fulfill O&M needs, repairs and upgrades through the CIP, and enhance customer experience. While the O&M and CIP budgets reflect the annual cash flow needs, CIP is controlled at a Life of Project (LOP) budget level.
Discussion
DISCUSSION
In alignment with the CEO's Equitable Zero-Based Budget (EZBB) and cost-efficiency focus, Metro identified cost saving measures in the FY27 budget request. As shown in Figure 1 below, the programs covered in this board report reflect a -$126.2 M (-5.8%) reduction in controllable costs (expenses excluding labor and allocations) compared to the FY26 budget for the programs covered in this month's report. The total budget for these programs totals $4.04 B ($2.07 B in controllable costs and $1.97 B in labor and allocations).
M...
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