The gist
ATP staff presented the proposed budget to board members July 17, with a work session following on Aug. 7.
The document outlines the upcoming year’s priorities as well as casts predictions for future years' capital investment needs to cover construction costs. The first phase of the Austin light-rail is slated to break ground in 2027.
The prospective budget plans will be taken to board members for a final vote Sept. 18.
By the numbers
The organization is expected to receive $172 million from taxpayers for FY 2024-25, a result of a 2020 voter-approved hike in property taxes. An additional $21 million is anticipated from the organization’s investments.
For the next fiscal year, ATP has a total of $116 million in spending planned for the light-rail project and $8 million for Capital Metro connection projects.
“The budget is really reflecting where we are in the overall advancement and momentum that we have for the Austin light-rail,” ATP Executive Director Greg Canally said.
Funds are also allocated annually toward antidisplacement—which was included on the ballot item—to mitigate the effects of transportation-related construction on individuals in vulnerable communities. The FY 2024-25 budget includes $60 million allotted to antidisplacement funding.
Additionally, the budget details plans for hiring 12 new full-time employees—including engineering and financial services personnel—and providing a 3.5% increase in pay for those eligible. The increase will help to recruit and retain a high level of expertise, according to ATP documents.
What’s planned?
Over the next year, ATP will focus on finalizing preliminary design plans for all stations included in Phase 1, with 15 stations planned in total. The $116 million allocated for the light-rail this fiscal year will be dedicated to design efforts, covering both administrative costs and professional services.
“We are designing Austin light-rail in a way that’s right for Austin,” said Lindsay Wood, an engineering project manager for ATP. “Looking ahead to next year, we would probably focus on two primary objectives—one being completing the requirements for project development, as we are now formally into that process, ... and the other being to prepare for the next phase of work.”
Other priorities include progressing through the federal environmental impact review process—which began back in March—as well as advancing through the federal grant funding program, which is vital to securing the remaining funding for the full build-out of Project Connect, ATP officials said.
Jointly funded with CapMetro, the ATP budget has allocated $8.1 million to new MetroRapid lines, specifically the Rapid Expo Center and Rapid Pleasant Valley, which serve some of the highest ridership corridors in the CapMetro system, according to ATP.
These two projects are under construction and anticipated to be open in 2025.
The Rapid Expo Center line includes a 12-mile route along Trinity Street, San Jacinto Boulevard, Manor Road and Loyola Lane. CapMetro has contributed a local funding match of $17.7 million toward this project.
The Rapid Pleasant Valley line includes a 15-mile route along East William Cannon Drive, Pleasant Valley Road and the Airport Boulevard corridor. CapMetro has contributed a local funding match of $18 million toward this project.
CapMetro does not collect tax dollar funding but rather pays for most operational and project expenses from city of Austin sales tax revenue.
Looking ahead
The agency expects to finalize the environment review process by 2026 and also receive needed federal funding by 2027.
However, staff have indicated a steep increase in budget funding needs for when crews begin clearing the way for the nearly 10 miles of track to be laid for Project Connect. An estimated $1.2 billion is forecast for the FY 2026-27 budget.
The full build-out of Project Connect is estimated to cost $7.1 billion:
- $3.19 billion for construction and engineering
- $1.86 billion for professional services
- $1.11 billion for trains and ATP’s maintenance facility planned for the Montopolis neighborhood
- $937 million for real estate acquisition
