Santa Cruz Metro Transit District 05/15/2026

The Santa Cruz Metropolitan Transit District Board of Directors held a meeting on May 15, 2026, focusing extensively on budgetary and procurement matters. Key discussions included the approval of the draft operating budgets for fiscal years 2027 and 2028, and the fiscal year 2027 capital budget portfolio. The board addressed significant budget challenges, including the expiration of certain state funds (notably the SB 1 125 funds) and the impact of rising costs such as hydrogen fuel. They approved a budget that maintains current service levels by eliminating 27 open positions without layoffs, while also planning for potential service reductions if future funding measures fail. The board received detailed updates on federal and state legislative developments affecting transit funding, including potential cuts to greenhouse gas reduction funds and the status of federal grants for capital projects like the Watsonville operations and maintenance facility. The meeting also covered the successful completion of a federal triennial review with zero findings, underscoring strong fiscal and procurement compliance. Additionally, the board ratified labor agreements with SMART unions, including a 3% wage increase. Discussions emphasized the need for efficiency improvements, potential service adjustments, and proactive community engagement to support upcoming ballot measures critical for sustaining transit funding.