UCLA Institute of Transportation Studies

This study reports on the recent past, present, and immediate future public transit finance in Southern California in light of the impacts of the ongoing COVID-19 pandemic. To do this, we draw on transit agency budgets, interviews, preliminary survey results, and other datasets and reports. Initially, the financial situation of transit operators in the region appeared dire, with plummeting ridership and fares and rising subsidies and operating costs. However, the three enormous federal pandemic relief bills brought $4.4 billion to Southern California transit agencies and helped the region weather the fiscal storm, until many of the state and local tax revenue sources on which the region’s transit agencies rely bounced back—and more quickly than most forecasters initially predicted. This is, in other words, the story of successful public policy intervention to the benefit of both the region’s transit riders and workers, though most operators nonetheless cut service and their workforces to varying degrees during the pandemic. The principal dilemma facing the region’s transit operators in 2022 is not a depressed economy, but an overheated one plagued by labor shortages, supply-chain bottlenecks, and inflation—as agencies plan for the end of large-scale federal operating support and an uncertain ridership future.