AUSTIN, Texas — Austin’s public transit provider, Capital Metro, plans to cut its budget by about 20% for next year.
The decision comes as the agency faces a downturn in sales tax revenue.
CapMetro's proposed budget for the 2024-25 fiscal year is $704.8 million. However, for the last few years, CapMetro's budget has declined. For 2023-24, the board of directors approved a budget of $871 million, and in 2022-23, they approved a $902.8 million budget.
“We’re in good financial position,” CapMetro Deputy CFO Kevin Conlan said during a Sept. 11 board meeting. “I’m very optimistic for next year, but we remain very guarded as well, with a downturn in sales tax.”
In this proposed budget, CapMetro is expecting a sales tax revenue of $402.8 million. Despite a lower budget, CapMetro said it still plans to bring some large projects online.
Its capital improvement budget, at $229.8 million, makes up for the largest of its expenses. The largest chunk of that budget, $149.1 million over five years, will go toward a North Demand Response Facility and CapMetro's new headquarters build-out.
More improvements include $15 million for CapMetro Pickup, the on-demand ride share shuttle that picks people up right in their neighborhoods, and $2.4 million toward BikeShare operations and expansions. Earlier this year, CapMetro started replacing all of the city bikes with fully electric ones.
The agency also plans to spend about $21 million over the next five years to enhance bus stops.
Another $21 million of the Capital Improvement Budget will go toward Project Connect, the city’s transit overhaul plan. Already, CapMetro used 16.1% of that Project Connect budget for its rapid lines and a new rail station right by Q2 Stadium in North Austin.
CapMetro’s Board of Directors will formally adopt the budget at their next meeting on Sept. 23. The public is welcome to attend and give public comment at all Board of Directors meetings.