Metro - File #: 2022-0153

• File #: 2022-0153
• Type: Informational Report
• Status: Filed
• File created: 3/8/2022
• In control: Finance, Budget and Audit Committee
• On agenda: 4/20/2022
• Final action: 4/21/2022
• Title: RECEIVE AND FILE the Fiscal Year 2023 (FY23) Budget Development Status Update.
• Sponsors: Finance, Budget and Audit Committee
• Indexes: Board approved a Motion, Budget, Budgeting, Coronavirus Disease 2019 (COVID-19), Crenshaw/LAX Transit Corridor Project, Fareless System Initiative, Informational Report, Light rail transit, Los Angeles International Airport, Low-Income Fare is Easy (LIFE), Metro Rail A Line, Metro Rail E Line, Metro Rail K Line, Metro Rail L Line, Mitigation, Motion / Motion Response, Outreach, Plan, Program, Quality control, Regional Connector Transit Corridor Project, Ridership, Safety, Students, Transfers, Transit Pass

Date	Action By	Action	Result
4/21/2022	Operations, Safety, and Customer Experience Committee
4/20/2022	Finance, Budget and Audit Committee

Meeting_Body
FINANCE, BUDGET, AND AUDIT COMMITTEE
APRIL 20, 2022
OPERATIONS, SAFETY, AND CUSTOMER EXPERIENCE COMMITTEE
APRIL 21, 2022

Subject
SUBJECT: FISCAL YEAR 2023 BUDGET DEVELOPMENT STATUS UPDATE
Action
ACTION: RECEIVE AND FILE

Heading
RECOMMENDATION

Title
RECEIVE AND FILE the Fiscal Year 2023 (FY23) Budget Development Status Update.

Issue
ISSUE

This is the third in a series of monthly updates to the Board on the FY23 Budget development process, culminating in a planned May 2022 Board Adoption.

Background
BACKGROUND

This update highlights the following:
A. Equitable Zero-Based Budgeting (EZBB) Cost Control
B. People First: Quality Investments
C. Metro Transit Program (Service Plan, Boardings, Fare, and Budget)
D. Budget for Congestion Management, General Planning & Programming and Oversight & Admin Programs
E. Early, Improved & Expanded Public Engagement Update

Discussion
DISCUSSION

A. Equitable Zero-Based Budgeting (EZBB) Cost Control

As Los Angeles County emerges from the COVID-19 pandemic and Metro Operations gears up to welcome back riders, we are preparing to open two new rail services as well as restoring bus service back to pre-pandemic levels. Funding for FY23 Metro Transit Operation program preliminary budget relies heavily on the last of one-time Federal Stimulus Funds, American Rescue Plan Act (ARPA).

Recent inflationary cost trends impact on Metro's expense continues to grow as Metro starts to operate new rail lines, addresses labor shortage, and absorbs supply chain logistic issues in operations. Additionally, new and improved initiatives implemented during the pandemic such as cleaning, public safety outreach, Metro Micro, expanded Low Income Fare is Easy (LIFE) enrollment, and Fareless System Initiative (FSI) programs will continue and add more operating cost. The disparity between the loss of ARPA funding and the slower growth pace of local sales tax and fare revenues results in a projected affordability gap sta...