Metro Transit expects to be $4.2 million over budget this year

By George Wiebe | Wisconsin State Journal (TNS)

MADISON, WIS. — An overly optimistic revenue projection and rising cost of operations have caused Madison’s bus system to run over budget in 2026, Metro Transit officials said.

During a midyear budget review, Metro leaders announced that the transit agency is projected to finish the year $4.2 million over budget. It is the second consecutive year Metro has reported a multimillion-dollar shortfall.

According to a report from Metro Transit Director Jamie Acton, revenue is running $1.5 million below initial projections. Meanwhile, operating expenses, including fuel, maintenance and labor, are expected to be roughly $2.6 million above budget.

Overtime, replacement bus parts and paratransit services are among the primary drivers of increased costs. Acton said overtime expenses are projected to exceed the budget by $510,000, while replacement parts are expected to cost an additional $1.3 million. Paratransit, which provides flexible transportation for riders with disabilities, is anticipated to cost $1.34 million more than budgeted by the end of 2026.

Metro reported a similar shortfall in 2025, when the agency required $5.75 million more than the city had allocated at the start of the fiscal year.

Acton said Metro needs an additional $1.32 million for supplies and more than $1.7 million for purchased services, including programs such as the paratransit network.

Metro’s revenue woes come despite ridership increasing by 3 million in 2025. Metro has seen steady growth in bus passenger numbers since 2020, according to the Federal Transit Administration, but ridership in 2025 still lags behind pre-COVID-19 levels.

Acton said part of the problem is that contracts with groups such as the Madison School District, UW-Madison and others do not cover the full cost of bus service and need to be addressed. She also said federal and state funds, which account for roughly 31% of Metro’s revenue, have not kept up with inflation.

Metro isn’t the only agency in Madison projected to run over budget. Last month, Madison Mayor Satya Rhodes-Conway announced that several departments had experienced significant overspending, primarily due to increased fuel costs.

Rhodes-Conway proposed an increase in the city’s recycling collection charge to raise roughly $545,000 for the city’s Streets Division, which handles waste pickups and general street maintenance such as snow plowing.

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