Revised fiscal year 2027 budget proposed for adoption on May 27 includes internal spending cuts, staffing reduction and service changes as inflationary pressures continue and Measure 120 fails
The TriMet Board of Directors will consider an updated agency budget that reduces overall spending by about $64.5 million in the coming fiscal year, which starts July 1, 2026.
In the face of the same challenges other local governments and fellow transit agencies are struggling with — rising costs and reducing revenues — TriMet is taking action now. We are streamlining spending, resizing our agency and balancing our budget to preserve the core transit service our region relies on for generations to come.
On Wednesday, May 27, the TriMet Board will consider the fiscal year 2027 budget for adoption. It will include internal spending cuts and the savings from the FY 2027 service plan adopted by the Board in April. The FY 2027 budget totals $1.75 billion, with $1.14 billion available for authorized use for service, operations and capital/maintenance projects.
The internal cuts include a staffing reduction. TriMet is planning to eliminate an estimated 400 positions, about 140 of which are vacant. With respect to the positions that are not vacant, many of the workers are eligible to return to prior union positions, in accordance with the current Working and Wage Agreement (WWA). That means the number of employees facing layoff is about 170. The layoffs will affect both nonunion and union positions.
With respect to workforce reductions, union employees have rights outlined in the WWA, which include “bump back rights” to return to previously held union positions and rights to re-employment, based on their seniority and other considerations. Nonunion employees do not have the same rights outlined in the WWA and instead will be offered a severance package.
Cost increases, sustainable funding drive financial challenges
TriMet and fellow Oregon transit agencies began engaging state and regional leaders in late 2024 about the need for increased transit funding. As TriMet mentioned at that time, we would need to begin cutting service if the State Legislature did not increase the employee payroll tax that funds transit, referred to as the Statewide Transportation Improvement Fund.
When the Legislature did not pass the transportation package during the regular 2025 session, in July 2025, TriMet announced a $300 million annual budget deficit. During the fiscal year between July 1, 2025 and June 30, 2026, we reduced expenses by about $150 million, mostly through internal spending cuts, a staffing reduction in fall 2025 and pausing planned future bus service increases. We also reduced how often buses ran during lower ridership hours on five lines in November 2025 and four other lines in March 2026.
Despite those efforts, the costs of providing transit service continue to rise on everything from materials to equipment to contract services. On average, costs increased 56% between 2019 and 2025, with prices continuing to go up this year. TriMet’s fuel costs alone have surged sharply in 2026, as much as 84% over weekly budgeted amounts, due to the Iran War.
Revenues are not keeping up with cost increases. Regional unemployment is high, reducing expected payroll tax funding, which is TriMet’s largest revenue stream. Federal funding is also coming in lower than past years, and, with Oregon second in the nation for remote work, less money is coming in through fares.
With all of that, TriMet’s budget deficit is growing faster than we can reduce it. Today, our budget deficit stands at $224 million.
While we streamline spending, and in light of the failure of Measure 120 to increase transportation funding in Oregon, we are continuing to work with state, regional and local leaders to identify sustainable funding for transit.
Learn more at trimet.org/budgetcuts.