Metro - File #: 2023-0728

• File #: 2023-0728
• Type: Informational Report
• Status: Filed
• File created: 11/28/2023
• In control: Finance, Budget and Audit Committee
• On agenda: 1/17/2024
• Final action: 1/25/2024
• Title: RECEIVE AND FILE The Fiscal Year 2025 (FY25) Budget Development Process.
• Sponsors: Board of Directors - Regular Board Meeting
• Indexes: Audit, Baldwin Hills, Budget, Budgeting, Bus rapid transit, Capital Improvement Program, Capital Project, City of Los Angeles, Congestion Management Program, Customer service, Funding plan, Hyde Park, Informational Report, Inglewood, Insurance, Labor, Leimert Park, Metro Busway G Line, Metro Rail A Line, Metro Rail B Line, Metro Rail C Line, Metro Rail K Line, Metro Vision 2028 Plan, Mitigation, NextGen Bus Study, North San Fernando Valley Transit Corridor, Off peak periods, Operating revenues, Operations and Maintenance, Outreach, Program Management, Project delivery, Safety, San Fernando, San Fernando Valley Service Sector, San Fernando Valley subregion, Strategic planning, Subsidies, Transfers, Transit buses, Travel time, Vehicle sharing, West Adams, Westchester
• Related files: 2024-0125

Date	Action By	Action	Result
1/25/2024	Board of Directors - Regular Board Meeting

Meeting_Body
FINANCE, BUDGET, AND AUDIT COMMITTEE
JANUARY 17, 2024

Subject
SUBJECT: FISCAL YEAR 2025 BUDGET DEVELOPMENT PROCESS

Action
ACTION: RECEIVE AND FILE

Heading
RECOMMENDATION

Title
RECEIVE AND FILE The Fiscal Year 2025 (FY25) Budget Development Process.

Issue
ISSUE

In preparation for the FY25 Budget development process, the Office of Management and Budget (OMB) provided the Finance, Budget, and Audit Committee an oral report on October 18, 2023, focusing on the major cost growth drivers over the next five years. In addition, the Board requested additional information on the fare box recovery ratio, which is included in the report.

This report builds on the oral report surrounding the challenges ahead and sets up the context for utilizing the Equitable Zero-Based Budget (EZBB) process. This report highlights the EZBB Attainments and Efforts Underway, highlighting service optimization and Operations' successes on cost containment as well as the capital cost mitigation work by the Early Intervention Team (EIT) and Program Management teams.

An outline of the planned EZBB process and schedule follow to address the delivery of Metro's objectives in the next fiscal year, culminating in a planned May 2024 Board Adoption. During the budget development process, a comprehensive and transparent public outreach engagement will be run to maximize public input and ensure Metro's stakeholders have an active role in the process. This report lays the framework for the annual budget development, with the primary objective of proposing a balanced FY25 Budget while achieving Metro's transit and transportation goals in a fiscally sound and financially responsible manner.

Background
BACKGROUND

California Public Utilities Code Section 130105 requires Metro to adopt an annual budget to manage the revenues and expenses of the Agency's projects and programs. The budget is the legal authorization to obligate and spend funds and to implement Board policy. It ...