San Diego's MTS Considers Fare Hikes to Address Budget Shortfall

Potential increases of up to $28 per monthly pass to generate $90 million over 4 years

Published on Feb. 24, 2026

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San Diego's Metropolitan Transit System (MTS) is facing a looming budget deficit exceeding $500 million over the next four years. To address this, MTS is considering raising fares, including potentially increasing the Adult Monthly Pass from $72 to either $90 (Package A) or $100 (Package B). MTS is gathering community feedback through public workshops to gauge rider preferences, with a focus on avoiding service cuts.

Why it matters

The proposed fare hikes would significantly impact low-income riders, with about 60% of MTS passengers making less than $50,000 per year and 20% earning under $15,000 annually. Some MTS board members have expressed concerns about adding financial pressure to working families.

The details

MTS is exploring fare increases that could generate $90 million over the next four years to address the budget shortfall. The agency is weighing the fare hikes against potential service cuts. Two fare increase packages are under consideration, with a focus on the Adult Monthly Pass which accounts for 88% of MTS revenue. Package A would raise the monthly pass from $72 to $90, while Package B would increase it to $100.

  • MTS is currently gathering community feedback through surveys and public workshops.
  • The next community workshops are scheduled for February 25 and March 5.
  • If approved, the higher fares would not take effect until July 1 at the earliest, with implementation more likely occurring in the fall.

The players

Metropolitan Transit System (MTS)

San Diego's public transportation agency facing a $500 million budget deficit over the next four years.

Mark Olson

MTS Director of Marketing and Communications.

Monica Montgomery Steppe

San Diego County Supervisor for District 4 and MTS board member who opposes the potential fare increases.

Ryan Schmahl

An MTS rider who is concerned about the impact of higher fares on low-income passengers.

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What they’re saying

“People just don't want service levels to get cut, so certainly what we've been hearing is that people prioritize service over the cost to ride.”

— Mark Olson, MTS Director of Marketing and Communications (10news.com)

“Seeing a three-digit number attached to what they're currently paying $72 a month for is going to come as a swing to the head for a lot of people, especially a lot of low-income people that use the service.”

— Ryan Schmahl, MTS rider (10news.com)

“I can't support it because I think it will add additional pressure to working families. I'm not continuing to do this on the backs of poor people. I just won't be able to do it.”

— Monica Montgomery Steppe, San Diego County Supervisor for District 4 and MTS board member (10news.com)

What’s next

The MTS Board of Directors, along with guidance from SANDAG, will make the final decision on fare increases in the coming months.

The takeaway

The proposed MTS fare hikes highlight the difficult balance between maintaining public transit service levels and ensuring affordability, especially for low-income riders. As MTS works to address its budget shortfall, the community feedback and concerns of board members like Supervisor Montgomery Steppe will be crucial in determining the final outcome.