OC Transportation Agency funds Metrolink for another quarter as service hangs in the balance

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.

A majority of Metrolink’s budget is funded by Orange, Los Angeles, Riverside, San Bernardino and Ventura counties’ transportation departments.

The OCTA board’s 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.

How did we get here? 

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’s contribution limit by about $6 million. OCTA tasked Metrolink with coming back with a revised budget that is within its contribution limits.

“Metrolink ridership has suffered since the pandemic began over six years ago,” Andrew Oftelie, OCTA's chief financial officer, said. “Metrolink 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.”

The amount Metrolink asked for from OCTA has almost doubled since pre-COVID, Oftelie added, and OCTA’s contribution has not been a huge budget issue in the last five years because of a “significant amount of one-time” state and federal funds.

“Those one-time funds have all been exhausted at this point, which is why we gave Metrolink a budget target this year,” Oftelie said. “That budget target was commensurate with the amount of ongoing revenues we expect to receive from Metrolink service going forward.”

Why it matters

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’s highest revenue generator.

Ridership has grown slightly over the last two years, he added, but challenges remain. In creating a budget for this fiscal year, Metrolink officials have made $16 million in budget cuts. In April, LA Metro also proposed to reduce its subsidy to Metrolink by 3%.

“The last thing I want to do … is pin this on our member agencies,” Kettle said. “The fact of the matter is we would have a challenging financial situation without those reductions from LA Metro and OCTA.”

What’s next? 

Oftelie told the OCTA board that a revised budget request from Metrolink is expected this week.