MTS Plans for 2028 Budget Shortfall

San Diego Metropolitan Transit System (MTS) is facing a structural deficit which could lead to a budget shortage of $100 million annually starting 2028. Funding measures like the CARES Act (COVID-19 relief) and SB 125 gave MTS one-time infusions to boost operations. However, as those funds deplete, MTS must find other sources of funding or reduce operations.

MTS staff proposed a plan that would extend their balanced budget through FY 2030, however the plan did not pass the Board of Directors.

MTS OnTrack is a roadmap to keep transit ridership high amid a potential loss of funds. It plans for two scenarios, one with funding increases and one with funding cuts. OnTrack will assess community needs and prioritize funding for the highest demand services. If more funding is secured, MTS will implement wider services throughout San Diego using proposals from Elevate 2020, MTS’ previous outreach project. Service expansions may include increased frequencies, new routes, or more hours of service. The final plans for implementation are slated to be completed by January 2026.

If funds are not increased, services will be cut. MTS is collecting feedback this year to determine the most important routes to maintain.

MTS is also studying potential local funding measures, such as a half-cent sales tax, to overcome the deficit. To continue the upward momentum of MTS’ services, it is important to secure more funding and ensure inclusive community engagement.