Metropolitan Council approves January budget amendment; adds funds for contracted services and authorizes 31 buses

Metropolitan Council · January 29, 2026

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Summary

The Council on Jan. 28 approved Business Item 2026-1JT, a budget amendment that reallocates operating and capital funds across transportation, environmental services and regional administration, adds $3 million for MTS contracted services, transfers $30 million to light rail, and authorizes the purchase of 31 buses.

The Metropolitan Council voted to adopt Business Item 2026-1JT, the January 2026 budget amendment, after a motion from Council Member Pacheco and a roll call vote.

The amendment makes multiple changes across the adopted 2025 and 2026 operating and capital budgets. Staff outlined the principal changes: a $3,000,000 increase in the MTS contracted services program to cover contract-rate increases; addition of one full-time equivalent in regional administration; movement of $2,500,000 from one environmental-services cost center to a support-services cost center; incorporation of the state’s November 2025 economic forecast for MVST and related sales-tax revenue updates (the amendment adds $44,000,000 in sales-tax revenue); a salary reduction in bus operations of $8,000,000; a $30,000,000 transfer of allocated trip program expenses from the bus operations budget to the light-rail budget; and a $1,000,000 sales-tax allocation for the Bronze Line capital program.

The amendment also authorized the purchase of 31 new buses to be allocated to the Council and suburban transit providers; staff said those buses would be covered through the transportation capital program changes included in the amendment.

Roll call and outcome: the clerk performed a roll call and the chair announced the motion carries. Three members were recorded as absent during the roll call (Council Members Johnson, Osman and Lee); the clerk recorded ayes from the members on the floor and the chair stated the motion carries.

What’s next: Staff will implement the budget changes according to the tables attached to the amendment; purchasing and grant-flow actions for bus procurement and capital adjustments will be coordinated through the transportation staff and partner providers.