**SAN DIEGO** – The San Diego Metropolitan Transit System (MTS) is navigating a turbulent financial period, marked by declining ridership, budget deficits, and tough decisions about the future of the region's public transit. During a series of board meetings on March 18 and 19, 2026, officials approved a revised budget for the current fiscal year while debating potential fare increases, service adjustments, and executive pay freezes to address a looming fiscal cliff.
The agency faces a complex picture: passenger numbers for Fiscal Year 2026 are projected to be 80.8 million, down from an initial forecast of 86.2 million. This has created an $8.4 million shortfall in passenger revenue. While stronger-than-expected sales tax revenue has provided a cushion, MTS is still relying on one-time funds and "belt-tightening" measures, such as freezing 30 open positions, to balance its budget. The uncertainty has sparked debate on how to distribute the financial burden. One proposal to freeze non-union staff pay was met with resistance, with Vice Chair Gobel warning it could be "demoralizing" to expert staff.
To generate new revenue, MTS is considering two fare increase packages. The more moderate option would raise one-way adult fares to $3.00, while a steeper option would increase them to $3.50. Public outreach revealed that riders would prefer to pay more rather than face service cuts. This sentiment was echoed in pleas from the public, such as Rancho Bernardo resident Alex Wong, who spoke passionately against cuts to Route 245, a vital line for low-income riders. "I prefer to take [the] 245 because it means less waiting, and waiting is the worst part of my trip," he explained, highlighting its efficiency and 15-minute frequency.
In a move to streamline services, the board approved the discontinuation of Express Route 110 due to low ridership, a decision expected to save $361,000 annually while modifying other routes to accommodate affected passengers. Concurrently, the agency faces a staggering $800 million funding gap in its five-year, $1.2 billion Capital Improvement Program, which is essential for maintaining the system and transitioning to a zero-emission fleet.
As MTS prepares its budget for the next fiscal year, it faces a critical balancing act: ensuring financial stability without disproportionately burdening its most vulnerable passengers or its workforce. The decisions made in the coming months will be crucial in steering San Diego’s public transit through these choppy waters and defining its accessibility for years to come.

