OCTA Proposes 2026-27 Balanced Budget to Advance Transportation in Orange County

Workshop highlights the transportation agency's fiscal strength, invites public input ahead of June 8 hearing

ORANGE - The Orange County Transportation Authority Board of Directors this month received its first comprehensive look at the agency's proposed fiscal year 2026-27 budget during a public workshop, reviewing a proposed balanced budget that reflects OCTA's continued commitment to maintaining a safe, reliable and balanced transportation network for Orange County.

The proposed budget, totaling approximately $2 billion, advances key transportation initiatives while ensuring all services, programs and projects can be delivered to residents not only next year but well into the future.

The Board is expected to consider adoption of the final budget at a June 8 public hearing that will provide community members with an opportunity to share input before final board consideration and a vote on adopting the budget.

"OCTA has built a strong track record of being careful stewards of taxpayer dollars," said OCTA Chair Jamey M. Federico. "Through prudent planning and disciplined decision-making, we are able to maintain a balanced and sustainable transportation system that meets the needs of our communities while also helping protect the environment."

The annual budget continues to emphasize advancing transit initiatives, with more than half of the budget (approximately 52%) dedicated to transit such as OC Bus and OC Streetcar, regional rail and Measure M transit services.

Key budget themes include:

• A balanced budget with no unplanned use of reserves
• Growing sales tax revenues to support core programs
• Delivering Measure M as promised
• Maintaining safe, reliable OC Bus service for riders
• Aligning Metrolink service with demand to ensure long-term viability
• Continuing to meet express lanes commitments
• Prioritizing coastal rail resiliency and reliability

A History of Prudent Planning

The proposed budget reflects decades of fiscally sound leadership, with a focus on aligning expenditures with available revenues, maintaining healthy reserves, and ensuring that investments are consistent with voter-approved Measure M funding, the local half-cent sales tax to fund transportation.

That approach has proven especially critical during times of economic uncertainty: During the COVID-19 pandemic, OCTA temporarily reduced bus service to reflect lower ridership demand and made the difficult decision to forgo staff raises. Those actions allowed the agency to preserve essential services for those who depend on public transit while safeguarding long-term financial health.

OCTA's disciplined approach also recognizes that key revenue sources, including sales tax measures such as Measure M, can fluctuate over time. Through careful planning and avoiding overcommitment during strong economic periods, the agency is better positioned to navigate any future uncertainties.

Working with Metrolink for Long-term Sustainability

OCTA continues to work collaboratively with regional partners to address broader transportation challenges, including the long-term sustainability of Metrolink regional rail service. OCTA has long been a committed partner in supporting Metrolink, which plays a vital role in connecting Orange County to the greater Southern California region. OCTA remains dedicated to ensuring the continued success of regional rail service.

At the same time, OCTA is applying the same measured and responsible approach to discussions around Metrolink's financial future, emphasizing the importance of aligning service levels with ridership and available funding to ensure long-term sustainability.

Metrolink continues to face structural funding challenges driven by struggling post-pandemic ridership and rising operating costs. As part of the proposed fiscal year 2026-27 budget, OCTA is planning to contribute its share of funding to support continued rail operations, while working with Metrolink to identify long-term solutions that ensure the system remains financially sustainable.

For more information about the proposed budget and upcoming public hearing, visit https://www.octa.net.

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