MTS approves $473.1 million budget, but faces future ‘fiscal cliff’

San Diego Trolley downtown File photo by Chris Stone Times of San Diego The San Diego Metropolitan Transit System board on Thursday approved a million operating budget that includes tens of millions in reserves and other funding to balance the spending plan The newly approved budget fully funds current operation levels on all four trolley lines and bus routes The approved budget also keeps -minute trolley frequencies enacted in January in place But the agency turned to non-traditional sources to keep funding regular operations MTS reallocated million in what officers called non-critical capital funds to promotion operations in Fiscal Year which begins July The budget also uses million in operating deficit reserves excess stimulus funds from prior years that MTS revealed were saved specifically for balancing future operating budget deficits This year s budget demonstrates our dedication to delivering dependable affordable transit while planning for future requirements Stephen Whitburn MTS Board Chair and a member of the San Diego City Council noted in a news release Through strong collaboration we ve approved a balanced budget that meets the demands of currently s riders and lays the groundwork for a more sustainable transit system Total budgeted revenue for FY is projected at million Financial planning staff already recounted the board they will need to rely on the capital fund shifts for the foreseeable future million more in and million in the following year to balance the budget They also recommended that MTS delay planned provision enhancements The board approved those approaches in February But staff estimated that MTS would hit a fiscal cliff early in FY and run out of budget-balancing funds creating a deficit of more than million in the following year The agency now faces a fork in the road expand services if new funding is detected reduce them if not and will turn to a consultant for help The MTS board also on Thursday approved a contract with the San Diego County-based firm Transportation Management Design Inc to conduct an operational analysis The process executives mentioned includes a thorough evaluation of the bus and trolley system and will lead to recommendations for altering routes adding or deleting services and other changes with the goal of to enhancing efficiency and effectiveness The analysis is expected to take months Pursuing an operational analysis now functionaries explained is a strategic forward-thinking action to address the deficit ahead of In addition to the operating budget MTS also has a million capital improvement plan that is set to fund projects in the coming fiscal year including buses rail station upgrades and more