San Diego Transit Faces Service Cuts, Fare Hikes, and New Funding Plans

San Diego transit officials are considering fare hikes and service cuts to address financial challenges. They plan to explore new revenue sources, including a sales tax increase or vehicle license fees. This was reported by the railway transport news portal Railway Supply.

San Diego’s Transit System Faces Major Financial Challenges

Transit officials are taking urgent steps to stabilize the budget while maintaining essential services. The Metropolitan Transit System (MTS) board unanimously approved studies on fare increases and service reductions.

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MTS aims to offset a $120 million annual deficit without significantly harming ridership growth. San Diego relies on transit expansion to support high-density housing and reduce urban traffic congestion.

The board authorized a study on the first system-wide fare increase since 2009. MTS revenue has dropped 30% to 40% compared to its inflation-adjusted value from 2009.

A $72 monthly transit pass would now cost $110 if adjusted for inflation. Officials say the upcoming study will determine fare impacts on ridership, accessibility, and financial sustainability.

MTS earns less revenue per passenger than comparable transit agencies. The study will also ensure compliance with Title VI of the Civil Rights Act, preventing discriminatory fare adjustments.

The San Diego Association of Governments will lead the study, working with North County Transit District. The findings will guide future transit pricing strategies and financial planning.

Potential Service Cuts Could Impact San Diego Riders

To evaluate service changes, MTS will invest up to $800,000 in a new operational analysis. The study will assess route efficiency, recent service expansions, and shifts in commuter behavior.

Previous system analyses were conducted in 2006 and 2017, but leaders say another is overdue. They cite post-pandemic commuting changes, budget constraints, and the Blue Line extension as key factors.

MTS will develop two strategic plans: one assuming new revenue, another requiring significant service cuts. Without additional funding, officials warn that deep reductions in transit operations are likely.

Board members have already canceled plans to increase the Blue Line extension’s train frequency. Originally scheduled for June, the service expansion is now indefinitely postponed due to financial uncertainty.

MTS expects the strategic plan for service reductions to be ready by late 2026. If a funding measure succeeds, an improved service plan could be implemented much earlier.

Officials are considering placing a half-cent sales tax increase on the November 2026 ballot. If approved, it could generate approximately $300 million annually for transit projects and operations.

A similar sales tax proposal polled well in 2019 but was abandoned due to COVID-19. Leaders are optimistic but recognize the difficulty of persuading voters to approve higher taxes.

Unlike past proposals for service expansion, the new measure primarily addresses financial stability. Officials fear voters may be less inclined to support a tax that maintains existing service.

Another challenge is the potential conflict with a separate countywide transportation tax initiative. If both appear on the same ballot, competing measures could lower the chance of approval.

MTS board members must finalize a sales tax proposal by May 2026. They are also exploring alternative revenue sources, such as increasing vehicle license fees.

A vehicle fee increase requires only a simple majority vote, unlike a two-thirds tax approval. Santa Clara County’s $10 surcharge provides a model, though revenue projections remain uncertain.

San Diego has nearly 3 million registered vehicles, meaning a $10 surcharge would raise $30 million. However, the funds would be shared across the county and support broader transportation projects.

Some officials propose a tiered vehicle fee, charging higher rates for expensive cars. They believe this could generate $100 million annually while easing costs for lower-income drivers.

MTS remains committed to long-term transit sustainability while keeping public transportation accessible and efficient. The agency’s upcoming decisions will shape the future of San Diego’s public transit system.

Source: www.sandiegouniontribune.com

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