OCTA Approves $2 Billion Budget for Fiscal Year 2026-27

Balanced budget prioritizes transit, freeway and street improvements while maintaining OCTA's strong financial position

ORANGE - The Orange County Transportation Authority Board of Directors today approved a balanced budget of approximately $2 billion for fiscal year 2026-27, continuing investments in transit, freeways, streets and roads, and other transportation improvements that keep Orange County moving while maintaining OCTA's long-standing commitment to fiscal responsibility.

The budget, which takes effect July 1, allocates funding across all modes of transportation and supports the delivery of major projects and programs that improve mobility, enhance quality of life and fulfill commitments made to Orange County voters through Measure M, the county's half-cent sales tax for transportation improvements.

More than half of the budget - approximately 52% - is dedicated to transit investments, including OC Bus service, Metrolink commuter rail, local rail operations and Measure M-funded transit programs. The budget also continues funding for freeway improvements, express lanes operations, local street and road projects, and motorist services.

"At OCTA, we are focused on making strategic investments that improve the way people move today while preparing Orange County for the future," said OCTA Chair Jamey M. Federico. "This balanced budget demonstrates our commitment to responsible stewardship of taxpayer dollars while continuing to enhance transit service, improve our roads and freeways, and deliver on the promises made to Orange County voters."

Budget Allocation Highlights:

• 52% for Transit
• • 34% for bus operations and services
  • 13% for regional rail service
  • 2% for local rail
  • 2% for Measure M transit programs
• 25% for Freeways
• 10% for the 91 Express Lanes
• 8% for Streets and Roads
• 3% for the 405 Express Lanes
• 2% for Measure M Debt Service
• Less than 1% for Motorist Services

Key Priorities for the next fiscal year include:

• Maintaining and Enhancing Transit Service
• • Continued operation of Orange County's bus and rail network
  • Investments to support reliable and accessible public transportation
  • Ongoing implementation of transit programs funded through Measure M
• Delivering Transportation Improvements
• • Continued investment in freeway improvement projects throughout Orange County
  • Funding for local street and road improvements through Measure M programs
  • Support for regional transportation partnerships and rail initiatives
• Preserving Financial Stability
• • Maintaining a balanced budget amid economic uncertainty
  • Continued prudent management of reserves and resources
  • Monitoring sales tax and other revenue sources while positioning OCTA to respond to changing economic conditions
• Operating Express Lanes Successfully
• • Continued operation and maintenance of the 91 Express Lanes and 405 Express Lanes
  • Meeting financial and performance commitments while providing reliable travel options for motorists

The FY 2026-27 budget encompasses all transportation services, capital projects and programs approved by the OCTA Board and administered by the agency. Through careful planning and disciplined financial management, OCTA continues to deliver a balanced transportation system that serves Orange County residents, businesses and visitors.

For more information about OCTA programs, projects and services, visit https://www.octa.net.

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