The Orange County Transportation Authority approved $10.5 million for Metrolink services for the second quarter of the fiscal year as the rail service faces a dip in ridership and rising operational costs.<\/p>\n
A majority of Metrolink\u2019s budget is funded by Orange, Los Angeles, Riverside, San Bernardino and Ventura counties\u2019 transportation departments.<\/p>\n
The OCTA board\u2019s approval this week follows a previous $14.5 million contribution in June to support Metrolink services for the first quarter of the fiscal year. Funding for the remainder of the year depends on a formal Metrolink budget request, board approval and approval from neighboring transportation authorities.<\/p>\n
How did we get here?\u00a0<\/p>\n
In December, OCTA told Metrolink that its fiscal year 2026-27 contribution would need to remain at no more than $46 million. But in July, Metrolink submitted an operating budget draft that would exceed OCTA\u2019s contribution limit by about $6 million. OCTA tasked Metrolink with coming back with a revised budget that is within its contribution limits.<\/p>\n
\u201cMetrolink ridership has suffered since the pandemic began over six years ago,\u201d Andrew Oftelie, OCTA’s chief financial officer, said. \u201cMetrolink ridership today is at about two-thirds of what it was prior to the pandemic. Lower ridership combined with higher costs has meant that Metrolink has asked member agencies like OCTA to fund a greater percentage of the service.\u201d<\/p>\n
The amount Metrolink asked for from OCTA has almost doubled since pre-COVID, Oftelie added, and OCTA\u2019s contribution has not been a huge budget issue in the last five years because of a \u201csignificant amount of one-time\u201d state and federal funds.<\/p>\n
\u201cThose one-time funds have all been exhausted at this point, which is why we gave Metrolink a budget target this year,\u201d Oftelie said. \u201cThat budget target was commensurate with the amount of ongoing revenues we expect to receive from Metrolink service going forward.\u201d<\/p>\n
Why it matters<\/p>\n
In a presentation to the OCTA finance and administration committee on Sept. 17, Metrolink CEO Darren Kettle said the Orange County line is the rail\u2019s highest revenue generator.<\/p>\n