Meeting_Body
FINANCE, BUDGET, & AUDIT COMMITTEE
APRIL 19, 2017
Subject/Action
SUBJECT: FISCAL YEAR 2018 (FY18) BUDGET DEVELOPMENT STATUS
ACTION: RECEIVE AND FILE
Heading
RECOMMENDATION
Title
RECEIVE AND FILE report on FY 2018 Budget Development Status.
Issue
ISSUE
Prior FY18 Budget Development Status updates included the major budget planning parameters, such as projected sales tax revenues, changes to the Consumer Price Index (CPI), and expected transit service levels. The FY18 Capital Program, which represents the budget for transit construction and state of good repair multi-year projects, has also been presented in previous updates.
This monthly status report provides a preliminary summary of expenditures for the agency, detailing the remaining FY18 program budgets.
Discussion
DISCUSSION
The preliminary FY18 budget is $6.11 billion, an increase of $83.8 million in total agency expenditures from the $6.03 billion FY17 budget. This increase of only 1.4 percent demonstrates the agency's commitment to fiscal discipline, tight budget controls, and continued emphasis on accountability. As we continue delivering the promises of Measure R and now Measure M, it is Metro's duty to exercise careful planning and to responsibly spend every dollar the voting public has entrusted us with.
Figure 1 shows the $6.11 billion preliminary agency budget amount by program.
Figure 1:
Metro Operations
The FY18 $1.7 billion Transit Operations budget represents a $98.2 million increase, or 6.1 percent, over the FY17 budget. Figure 2 shows the preliminary Metro Operations budget by mode.
Figure 2:
This variance is due largely to a $47.7 million increase in costs as a direct result of recent changes to the FTA-approved Allocation Plan, as well as $16.9 million in additional labor costs as a result of planned bus bridges for Blue Line signal system upgrades and Silver Line service interruptions due to construction of the Regional Connector. In addition, purchased transporta...
Click here for full text