The Metropolitan Transit Authority of Harris County (METRO) board members unanimously approved the fiscal year 2026-27 budget of $1.7 billion during a Sept. 30 meeting.
What’s different?
METRO now expects to collect $29.2 million more in sales-tax revenue than it originally projected, a 2.6% increase. The additional revenue allowed the agency to avoid service reductions that had previously been considered, according to a news release.
The adopted budget includes $1.015 billion for operating expenses, a 2.4% decrease from the current budget, and $371.5 million for capital projects, nearly 40% less than the FY2025-26 budget.
METRO said the budget also avoids restructuring its debt or using reserve funds during the fiscal year.
“Developing a responsible budget means looking carefully at every option and making sure our resources are aligned with the services our customers depend on most,” said METRO Interim President and CEO Tom Jasien. “This budget maintains that service while meeting our financial obligations and protecting METRO’s ability to serve this region for years to come.”
Much of the capital spending will go toward maintaining and improving METRO’s existing system. The agency plans to purchase 68 buses, 116 METROLift vehicles, 195 vans and 39 alternative-service vehicles. The budget also includes money for bus shelters, accessibility improvements and infrastructure repairs.
Also of note
METRO officials also expect total ridership to grow 2.8% in FY 2026-27, according to budget documents.
The agency will also transfer about $231 million to its General Mobility Program, which funds transportation projects for Houston, Harris County and other participating jurisdictions.
The fiscal year began Oct. 1.
