rail

LA Metro Adopts $9.7B Budget for Fiscal 2027 Despite Structural Deficit

The Los Angeles County Metropolitan Transportation Authority approved a $9.7 billion budget for Fiscal Year 2027 on June 2. The budget maintains core services and funds new construction projects while avoiding service reductions and expanding safety initiatives, despite a significant structural deficit driven by rising operational and construction expenses. Metro identified external risks including federal funding uncertainty, tariff impacts on procurement, and persistent inflation as threats to cost projections and timelines. Internal pressures from ongoing rail expansion and growing capital requirements continue straining operating resources. The rail budget supports 45 million revenue service hours across four light rail lines (A, C, E, K) and two heavy rail lines (B, D), including the PLE Section II expansion. The bus budget funds 253,000 revenue service hours while the Metro Micro Pilot program provides first-mile and last-mile connections with a 23.1% budget increase from FY26.