Metro Transit presents 2026 budget, requests roughly $47.6 million in local appropriations

Metro Transit officials told the St. Louis City Transportation and Commerce Committee on a recent morning that the agency's 2026 budget anticipates about $344.2 million in revenue and roughly $334.0 million in operating expenses and that the agency is requesting $47.6 million in local appropriations for the coming year.

The budget presentation, given by Talby Roach, president and CEO of Biostate Development (which operates Metro Transit), and Tammy Fulbright, Metro's chief financial officer, placed projected passenger revenue at about $19.5 million for 2026 and said grant, sales-tax and contractual revenue will be the largest funding source. Roach told the committee the agency seeks to keep operating revenues aligned with local tax growth and to limit requests for additional appropriations.

Agency leaders said the 2026 budget shows a modest operating gap that Metro plans to manage by finding internal efficiencies. "We are dedicated to that at Metro Transit," Roach said during the presentation. CFO Tammy Fulbright detailed line items, saying in budget notes, "So in total for '26, we have revenue of 344,200,000 approximately." The budget documents presented to the committee showed an operating expense total of about $334,000,000 and a projected deficit Metro officials said they will manage without asking for more than the requested appropriations.

Why it matters: Local appropriations and sales tax distributions fund day-to-day transit operations and capital projects. Committee members pressed Metro on ridership, reserve balances and how the agency plans to close remaining gaps. Aldermen asked for additional year-to-date financial detail and for follow-up on capital project timing tied to reduced interest income.

Committee action and next steps: The committee took up three related board bills that appropriate local transit taxes. Board bill 35, the appropriation from the 1974 transportation sales tax, was presented to the committee as an appropriation of approximately $26.3 million. Board bill 36 (described in the presentation as the Prop 1 transit sales tax appropriation) for about $13.6 million and board bill 37 (a second appropriation from the transit sales tax, referred to as Prop M2) for an equivalent amount were also before the committee. Each of the three bills was moved, seconded and passed out of committee with a "due pass" recommendation. The roll call on board bill 35 recorded four ayes: Alderman Oldenburg, Alderman Orion, Alderman Schweitzer and Chair Cone.

Details from the presentation: Metro said wages and benefits represent the largest expense (just over 60% of the operating budget) and cited union contract adjustments and medical and workers-comp costs as primary drivers of increases. Metro also noted a notable reduction in interest income compared with prior years because several capital projects are progressing and cash balances that formerly earned interest have declined. The agency said depreciation and federally funded capital projects (including a planned light-rail vehicle replacement) explain larger nonoperating deficits that are covered by federal capital grants.

Officials asked the committee to consider the request as part of the city and county's normal annual appropriations process and said they would provide follow-up materials on 2025 year-to-date actuals and on reserve/cash-flow treatment.

Public and committee concerns: Committee members and city aldermen asked about ridership trends, fare revenue, reserve levels and how Metro will address the residual deficit. Alderman Oldenburg asked for ridership year-over-year metrics; Roach and Metro's operations leaders said ridership has increased annually since the COVID decline but average fare yield has fallen, which they attribute in part to increased pass usage and an aging fare system. Several aldermen asked for additional information on bus stop amenities, shelter and maintenance plans, and the agency said it is exploring a targeted small capital fund and municipal partnership model for prioritized stop improvements.

Ending: Metro officials said they would return with additional financial detail and updates on capital projects and service changes. The committee approved the three appropriation bills to advance with due-pass recommendations and indicated it may seek additional budget briefings in a future meeting.