San Diego MTS Enacts $482.5 Million Operating Budget and October 1 Fare Update as Station-Area Housing Expands

MTS Adopts $482.5 Million FY 2027 Budget and Enacts October 1 Fare Adjustment

SAN DIEGO, California — Managing rising operational costs while safeguarding essential metropolitan mobility, the San Diego Metropolitan Transit System (MTS) Board of Directors finalized implementation of its $482.5 million operating budget for Fiscal Year 2027. Taking effect on October 1, 2026, the transit authority enacted its first general fare restructuring since 2009 to protect core bus routes and all Trolley passenger lines across San Diego County.

Under the updated fare schedule, adult monthly transit passes adjust from $72 to $85, while reduced-fare passes for seniors, Medicare recipients, and individuals with disabilities adjust to $28. Crucially, the youth-focused Youth Opportunity Pass remains completely free for riders aged 18 and under, preserving daily school and extracurricular mobility for over 100,000 regional students.

Station-Area Housing Construction Mobilizes at Spring Street and Palm Avenue

Concurrently, MTS advanced its signature Transit-Oriented Development (TOD) program, initiating construction site preparations at the Spring Street Trolley Station in La Mesa. The project replaces underutilized park-and-ride asphalt with an energy-efficient mixed-income residential village featuring hundreds of attainable apartments directly adjacent to the rail platform.

Similar transit-adjacent housing groundbreakings commenced at the Palm Avenue Station in the South Bay. Supported by Mayor Todd Gloria's citywide pro-housing zoning initiatives, clustering residential density at transit stations provides built-in ridership for MTS while reducing greenhouse gas emissions across the region.

Fostering a Sustainable and Connected San Diego Region

Transportation planners and urban economists emphasized that balancing transit operational revenue with aggressive transit-oriented housing development is the cornerstone of sustainable regional growth. By safeguarding transit frequencies and providing attainable homes near transit hubs, San Diego ensures a connected and prosperous future.