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Yesterday, the Los Angeles County Metropolitan Transportation Authority (LACMTA) board adopted a $3.9 billion budget for FY2009-2010, which begins July 1.

The spending plan is half a billion dollars, or just under 15 percent, more than the current budget, due in large part to new transit and highway projects. LACMTA will launch $636 million in new programs in the coming fiscal year, funded mostly with federal stimulus dollars and the new Measure R sales tax.

In addition, the authority will begin operating the Metro Gold Line Eastside Extension to East Los Angeles, continue construction of the Expo light-rail line from downtown Los Angeles to Culver City, and advance planning studies for several new transit projects.

As mandated by Measure R, LACMTA will not raise fares in FY2010. However, the agency is grappling with higher operating costs and revenue cuts. California lawmakers voted earlier this year to eliminate state transit assistance, which in recent years has provided LACMTA about $100 million annually for its operating budget. In addition, local transit sales tax revenue is projected to decline 5 percent in FY2010 because of the recession. The authority will negotiate new contracts this spring with its major labor unions, as well.

To balance its FY2010 budget, LACMTA already has cut expenses by $130 million and plans to dip into its reserves.