San Diego – The San Diego Metropolitan Transit System (MTS) Board of Directors today approved the agency's Fiscal Year 2027 operating budget, maintaining core transit services across the system while advancing a long-term strategy to address structural funding challenges. The $482.5 million budget is a 2.4% increase over last fiscal year.
The balanced budget continues service on all Trolley lines and MTS bus routes, ensuring riders across the region maintain access to essential trips for work, school, healthcare and other daily needs. The plan reflects the Board's direction to preserve service levels while identifying new revenue sources, operational efficiencies and cost-saving measures to support financial sustainability.
"I am proud the Board adopted a budget that continues to prioritize reliable transit service for the San Diego region," said MTS Board Chair and San Diego City Councilmember Stephen Whitburn. "This budget reflects our commitment to riders while responsibly planning for future financial challenges and identifying solutions that keep public transit strong."
The FY 2027 budget builds on ongoing efforts to address a structural deficit driven by rising costs and relatively flat revenue growth. Since the onset of the COVID-19 pandemic, MTS has balanced its budgets using a mix of one-time funds, operational savings and strategic financial adjustments. The adopted budget continues that approach while advancing a longer-term plan to stabilize funding through at least the end of the decade.
Key elements of the FY 2027 budget include:
- Maintaining existing service levels introduced in recent years, consistent with Board direction to avoid reductions where possible
- Implementing targeted operational savings and administrative efficiencies
- Continuing to grow non-fare revenue sources such as advertising, energy credits and joint development opportunities
- Strategically using one-time funds and capital transfers to help bridge near-term funding needs
- Advancing planning for a potential regional transit revenue measure and other funding opportunities
MTS continues to explore a range of strategies to close projected funding gaps in future years, including pursuing new local, state and federal funding sources, evaluating fare policies, and completing a Comprehensive Operational Analysis to identify additional efficiencies.
"Public transit agencies nationwide are facing similar fiscal challenges, and MTS is proactively addressing them," said MTS Chief Executive Officer Sharon Cooney. "This budget keeps our system running strong today while laying the groundwork for long-term stability and continued investment in our riders and communities."
In addition to the operating budget, the agency will continue investing in capital improvements focused on state of good repair, system reliability, and infrastructure enhancements to support a safe and efficient transit network.
MTS provides more than 250,000 passenger trips each weekday and remains one of the most cost-effective transit agencies in the country, continuing to deliver essential mobility throughout San Diego County.
More information about the FY 2027 budget is available on the MTS Board of Directors meeting agenda (starting on page 984) for June 18, 2026.
About MTS
The Metropolitan Transit System (MTS) operates bus and Trolley service in 10 cities and unincorporated areas of San Diego County. MTS is committed to providing safe, reliable and sustainable transportation services that connect people to opportunity. Each weekday, more than 250,000 passenger trips are taken throughout the MTS system. For schedules, updates and more information, visit www.sdmts.com.
