The San Diego Metropolitan Transportation System (MTS) board has approved a plan to freeze fares for low-income customers ahead of anticipated fare increases in the fall, due to a projected $94 million budget deficit for the next fiscal year, potentially rising to over $122 million by 2030. MTS’s financial issues stem from reduced passenger numbers following the COVID-19 pandemic, with ridership dropping from 86 million in 2019 to 81 million in 2026.
To mitigate revenue shortfalls, MTS has relied on state and federal payments but needs to find new revenue sources or consider cutting services as funding will soon decrease. The board recommended fare increases to the San Diego Association of Governments (SANDAG), which controls fare pricing, with a public vote scheduled for July.
Councilman Sean Elo Rivera advocated for the fare freeze for low-income passengers enrolled in programs like CalFresh, CalWorks, or Medi-Cal, emphasizing the importance of maintaining ridership among vulnerable populations. He also requested a report on maximizing non-fare revenue through various initiatives.
While the board expressed concerns about the fare freeze’s overall impact—particularly due to a lack of data on affected riders—many agreed it was a necessary compromise. The board also discussed potential long-term funding solutions, including taxing ride-sharing services and pursuing a countywide sales tax for transportation funding, which has been previously proposed and defeated. A new tax measure could be considered for 2028.
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