OCTA Approves $1.74 Billion Balanced Budget for FY 2025-26

OCTA Approves $1.74 Billion Balanced Budget for FY 2025-26 Budget focuses on transit expansion, coastal rail resilience, and zero-emission investments amid economic uncertainty

ORANGE - The Orange County Transportation Authority Board of Directors today approved a balanced budget of $1.74 billion for the upcoming fiscal year that begins July 1 that keeps essential transportation improvements moving forward while responsibly planning for a balanced and sustainable transportation future for Orange County.

The approved budget makes significant investments in public transit - totaling approximately half of the overall budget - and makes improvements to Orange County's freeways and streets to keep the county moving safely and efficiently. The budget accounts for focusing on coastal rail resiliency and will continue to fulfill the promises of Measure M, the county's half-cent sales tax for transportation improvements.

"I'm pleased to see OCTA move forward with a balanced budget that reflects both fiscal responsibility and a strong commitment to improving how Orange County moves," said OCTA Chair Doug Chaffee, also the county's Fourth District Supervisor. "Thanks to the diligent work of our Board and staff, we are continuing to invest in vital transit, street and freeway improvements that enhance mobility and quality of life for everyone who lives, works, and visits Orange County."

Key highlights of the FY 2025-26 budget include:

• Expanded Transit Offerings:
• • Additional OC Bus service to meet increasing demand, back to pre-pandemic levels
  • Start of OC Streetcar revenue service activities
  • Continued support for Metrolink rail service
• Delivering on Measure M2 Commitments:
• • Measure M2 Next 10 Delivery Plan programs and projects remain on track
  • Formula and competitive programs continue to support the needs of cities and the county.
• Sustainable and Resilient Priorities:
• • Continued investment in zero-emission buses and supporting infrastructure, including seven additional zero-emission buses.
  • Ongoing coastal rail resiliency planning and project implementation to protect vital transportation corridors
• Consistent Express Lanes Operations:
• • 91 Express Lanes and 405 Express Lanes continue to meet performance and financial commitments
• A Guarded Economic Outlook:
• • Anticipated softening of sales tax receipts
  • Uncertainties in state and federal funding
  • Preservation of healthy reserve balances to mitigate potential revenue fluctuations

OCTA staff levels are scheduled to increase by about 31 employees - 27 of those coach operators to better serve the public's public transit needs. Reflecting the cautious economic approach, 11 staff positions identified as having value for the agency will not be added at this stage but will be reconsidered if tax revenues are higher than expected during the fiscal year.

Measure M will continue to fund improvements to freeways - including SR-55, SR-57 and SR-91 - and to streets throughout Orange County, in addition to multiple transit and environmental programs. Transportation funds are provided to cities through formula and competitive funding.

The FY 2025-26 budget encompasses all services, projects and programs that are approved by the OCTA Board and administered by the agency.

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