Capital Metro Board of Directors approves Fiscal Year 2024 budget

The Capital Metropolitan Transportation Authority Board of Directors voted unanimously Monday to approve the Fiscal Year 2023-24 Operating and Capital Budget, as well as its Five-Year Capital Improvement Plan.

The approved budget is $871,033,690 in operating and capital expenses. It includes $427.5 million in operating expenses, $12 million for commitments under interlocal agreements for mobility programs and $20.6 million to contribute to the Austin Transit Partnership for the Project Connect system plan in 2024. Capital Metro also plans to invest $411 million in capital projects to address during the fiscal year. Projects will include:

• continuing replacement of vehicles with battery-powered electric buses
• starting construction on two new MetroRapid lines serving East Austin, Travis County Expo Center and Pleasant Valley, with initial service projected in 2025
• rolling out new fare programs to ensure an equitable structure ahead of Project Connect’s implementation
• completing construction on McKalla Station at Q2 Stadium
• establishing a new headquarters at 3100 E. Fifth St.
• progressing on a transit police department.

“I would like to thank the board, senior leadership, Cap Metro staff and our wonderful budget team for the hard work in putting this budget together,” said Kevin Conlan, deputy chief financial officer. “This resolution captures the highlights of our Fiscal Year 2024 budget that the board and its committees have been briefed on from May to September, and takes into account the priorities that you as a board have set for the agency.”

He continued: “The budget is structurally sound and balanced, and I’m pleased to say that we’re projecting to meet all our reserve requirements with next year’s budget. We are in good financial position and optimistic for next year but remain guarded with the current financial climate, high petroleum pricing, lingering labor and supply chain issues and necessary funding for many large projects on the horizon.”

The budget is projected to have a fund balance of $285.4 million at the end of FY 2023-24, according to meeting backup materials. Capital Metro will set $71.2 million of that money aside for two months of operating expenses, which meets the level dictated by the Texas Legislature. The remaining funds will go to the budget stabilization reserve ($35.6 million), the sustainability capital fund ($10 million), city of Austin mobility programs ($3.7 million), the Small Cities Transit Supportive Infrastructure Fund ($2.3 million), a self-insurance reserve ($1.7 million) and future capital projects ($160 million).

The board held a public hearing on the proposed budget on Sept. 13. It was also reviewed by the Finance, Audit, and Administration Committee; the Operations, Planning, and Safety Committee; the Access Advisory Committee; the Customer Satisfaction Advisory Committee; and the Public Safety Advisory Committee.

Also on Monday, the board approved a contract with a new third-party service provider Keolis Transit Services, LLC, despite concerns raised by the Amalgamated Transit Union about the company’s “history of anti-union” conduct.

Photo by WhisperToMe, made available through a Creative Commons license via Wikimedia Commons.

The Austin Monitor’s work is made possible by donations from the community. Though our reporting covers donors from time to time, we are careful to keep business and editorial efforts separate while maintaining transparency. A complete list of donors is available here, and our code of ethics is explained here.