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File #: 2020-0726   
Type: Informational Report Status: Consent Calendar
File created: 10/15/2020 In control: Board of Directors - Regular Board Meeting
On agenda: 1/28/2021 Final action:
Title: CONSIDER: A. AMENDING the FY21 Budget by $765 million from $6.23 billion annual consolidated expenditures to $6.99 billion to achieve goals and objectives set forth by the Board adopted Metro Vision 2028 strategic plan; and B. AMENDING an increase of 5 Non-Represented FTEs from FY21 Adopted Budget authorized levels: 3 for Equity and Race and 2 for Customer Experience
Sponsors: Finance, Budget and Audit Committee
Indexes: Coronavirus Aid, Relief, and Economic Security Act, Coronavirus Disease 2019 (COVID-19), Customer Experience Plan, Debt, Demand responsive transportation, Government funding, Grant Aid, Informational Report, Maintenance, Metro Equity Platform, Metro Exposition Line, Metro Gold Line, Metro Rail A Line, Metro Rail E Line, Metro Rail L Line, Metro Vision 2028 Plan, NextGen Bus Study, Operating revenues, Payment, Race, Regional Connector Transit Corridor Project, Rolling stock, Safety, State Of Good Repair, Strategic planning, Subsidies
Attachments: 1. Presentation, 2. Staff Report
Related files: 2021-0022, 2021-0012, 2021-0010
Meeting_Body
REVISED
FINANCE, BUDGET AND AUDIT COMMITTEE
JANUARY 20, 2021

Subject
SUBJECT: FISCAL YEAR 2021 (FY21) MID-YEAR BUDGET

Action
ACTION: APPROVE RECOMMENDATIONS

Heading
RECOMMENDATION

Title
CONSIDER:

A. AMENDING the FY21 Budget by $765 million from $6.23 billion annual consolidated expenditures to $6.99 billion to achieve goals and objectives set forth by the Board adopted Metro Vision 2028 strategic plan; and

B. AMENDING an increase of 5 Non-Represented FTEs from FY21 Adopted Budget authorized levels: 3 for Equity and Race and 2 for Customer Experience

Issue
ISSUE

This report provides an update for revenues and expenses related to the FY21 Budget and request board approval to amend the FY21 Budget to the eligible Metro programs while maximizing the available financial resources. The increase to the FY21 Budget, during this mid-year update, is the result of our current economic conditions, reforecast of sales tax revenues, and effective cost control practices.

Discussion
DISCUSSION

Revenue Reforecast Update

Staff have been closely monitoring Metro's revenues as they relate to, and deviate from, historical patterns. We have been tracking current social and economic trends for potential impacts to Metro's revenue sources. The FY21 Mid-Year reforecast resource summary by type is in the following table.


NOTE: Totals may not add up because of rounding

To date, sales tax revenues have not declined as much as projected in the Adopted Budget. There was a significant bounce back in the Spring quarter, largely due to the broad economic stimulus of the Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act. The Federal legislation helped Metro two ways: First, directly through the transportation allocations in the law; Second, indirectly through individual and business stimulus payments and loans, which created additional sales tax receipts in Los Angeles (LA) County.

This recovery stalled over the sum...

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