The revised plan raises operating expenditures to $1,015 million. The public hearing will be on September 9, and the board plans to vote on the budget on the 24th.
HOUSTON, Texas — METRO removed from its 2027 budget proposal the reductions in bus and light-rail service hours that had initially been contemplated, so the new plan seeks to maintain the current operating levels for passengers in the Houston area.
The first version of the budget projected a reduction of approximately 5% in METRORail hours and 1.6% in bus hours. The revised proposal eliminates those cuts before the public hearing scheduled for Wednesday, September 9.
The budget is not yet approved. The Harris County Metropolitan Transit Authority Board expects to adopt the final plan on September 24, a week before the start of the new fiscal year on October 1.
An additional $15 million is added to the operating budget to preserve the service
The revised version increases operating expenses by $15 million, to a total of approximately $1,015 million.
That additional money is intended to cover higher costs related to transportation operations and technology without reducing the budgeted hours for bus and light-rail.
The change does not mean that all routes and frequencies will be frozen during 2027. METRO makes routing, scheduling and frequency changes through separate processes during the year.
The difference is that the overall budget no longer starts from a reduction of total bus and rail service hours to balance its expenses.
The plan reduces $40 million from the five-year capital program
To absorb part of the operating increase, METRO reduced its five-year capital program by $40 million.
The adjustment would delay projects considered lower priority, including some improvements to the authority’s administrative building.
METRO also estimates approximately $7 million in savings through staff reductions and an early retirement program. The revision contemplates 177 positions eliminated, primarily administrative and non-unionized.
The budget also contemplates debt restructuring to reduce payments over the next four years, though that strategy would increase long-term interest costs.
The proposal does not eliminate the $40 million allocated for repaving
METRO retains another $40 million allocated for road repaving work, mainly within Houston’s boundaries.
That amount is independent of the resources METRO regularly transfers to local governments through its General Mobility Program.
Groups that promote public transportation have questioned that part of the budget and have called for using more resources in the bus service. The board can still modify line items before final approval.
The public hearing will be on September 9 at noon
METRO will receive comments on its operating and capital budgets on Wednesday, September 9 at 12 p.m. in the METRO Boardroom, located on the second floor of 1900 Main St. in Downtown Houston.
The hearing will also allow virtual participation. People who want to speak can pre-register with the Board Office at 713-739-4834 or via email [email protected].
METRO will also receive comments on the budget via [email protected] and its customer service at 713-635-4000, before the hearing.
The schedules, virtual access and documents for the budget process are available in METRO’s official public hearing information.
The board is expected to vote the budget on September 24
The budget will cover the period from October 1, 2026 to September 30, 2027.
METRO expects to bring the final plan to a vote by its Board of Directors on Thursday, September 24. Until then, the figures and line items remain a proposal and can be modified.
As the budget process progresses, riders will also face a temporary change this weekend: METRO will operate local buses and METRORail with Sunday schedules during Labor Day, while most Park & Ride routes will have no service.
If the board keeps the current revision, the 2027 budget will begin on October 1 without the general reduction in bus and light-rail hours included in the initial proposal.
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Caleb Morrison