Adopted fiscal year 2026 budget reduces operating deficit by $24.2 million for year ahead, with more action needed to avoid fiscal cliff in 2031

TriMet’s Board of Directors has adopted a budget for the upcoming fiscal year that supports the bus, MAX light rail, WES commuter rail and LIFT paratransit services that people across the tri-county metro area rely on. The Board adopted a $1.96 billion overall budget for fiscal year 2026, to continue TriMet’s mission of providing public transit service that connects people to opportunities while providing a safe, reliable transportation service that eases traffic congestion and reduces air pollution. The budget also takes steps to address a $50.2 million deficit projected for next fiscal year and tightens spending ahead of a fiscal cliff projected in 2031.

The FY2026 budget includes $789.1 million in total divisional operating costs and $165.3 million for capital projects to address maintenance of an aging transit system and increase reliability for our riders. The budget also includes a fund balance of $771 million, which is unappropriated and not available for spending. 

Spending cuts reduce projected operating budget deficit

The FY2026 budget includes cuts to discretionary spending, with most of our divisions reducing spending by 2-3%. That resulted in $7.1 million in savings. Further changes to both resources and requirements resulted in an additional $17.1 million reduction. This reduced our projected operating budget deficit for the year from $74.4 million to $50.2 million, which better positions our agency for the future. We’ll continue to identify areas for efficiencies and cost reductions, to help avoid an unmanageable deficit ahead of the fiscal shortfall.

Balancing costs of inflation, contractual obligations, state of good repair

While TriMet has worked to increase efficiencies and trim spending, the budget for FY2026 increased from year to year. The increase is largely due to inflation, rising costs associated with contractual requirements and state of good repair needs. Expenditures, including contracted security personnel, our Accessible Transportation Program, building leases and software license fees, are growing at a staggering rate when compared to previous years.

Operating costs per vehicle have increased 53% from 2019 to 2024. Fuel and tires are up nearly 35% for our bus service, while facilities maintenance costs are up 71%. Our LIFT paratransit service relies on contractors. The cost for those personnel has increased from 47% to 85%, depending on the role. 

In addition, TriMet is experiencing higher costs to address the challenges of an aging system. We’ve been running buses in the metro Portland, Ore. region for more than 55 years, and MAX – one of the oldest modern light rail systems in the U.S. – has been in service since 1986. The Federal Transit Administration (FTA) requires TriMet to meet “state of good repair” benchmarks, to keep the entire system — including our facilities and aging infrastructure — maintained and operating reliably. 

Continuing valued safety and security efforts

TriMet’s work to expand safety and security benefits riders and employees and is contributing to an improved public perception of our transit service. Our Safety and Security team – now totals nearly 500 TriMet and contract personnel. They assist riders while providing a presence and helping deter unwanted behavior on and around the transit system.  Our FY2026 budget adds more blue-light security phones at MAX platforms that connect riders to our Security Operations Center. Trained security dispatchers have access to live feeds from more than 3,000 security cameras across TriMet’s system and coordinate responses to riders’ reports to our 24-hour security hotline. 

Growing resources for the future

TriMet is focused on growing operating resources in the years ahead. Among those efforts, we will continue to improve the rider experience and steward capital investments to increase ridership and, in turn, fare revenue. Addressing our goals to provide transit service that is fast, frequent and reliable, the FY2026 budget provides a roadmap for major capital investments including the 82nd Avenue Transit Project – TriMet’s next FX (Frequent Express) line  – and the development of the TV Highway Transit and Safety Project. 

As we work to improve our service and the experience on board, we also look to secure long-term sources of stable financial support. TriMet has also joined the Oregon Transit Association (OTA) in appealing to Oregon legislators to increase funding for public transit in the 2025 transportation package. The phased increase of 0.4% in the Statewide Transportation Improvement Fund (STIF) employee payroll tax over eight years sought by the OTA  is necessary to avoid cuts to the transit service that is essential for TriMet riders.

Adopted FY2026 Budget – At a Glance

TriMet’s adopted budget for the coming fiscal year that runs from July 1, 2025, through June 30, 2026, includes:

• $552.5 million for operations
• $236.6 million for general and administrative costs,
• $165.3 million for capital and operating projects
• $1.002 billion for contingency, debt service, fund balance, other non-operating requirements and other post-employment benefits

Oregon Local Budget Law (ORS 294.305 to 294.565) requires the Board to adopt a balanced budget before the start of TriMet’s new fiscal year on July 1, 2025.