Frank S. Waesche III
MEMORANDUM
TO:
Finance and Administration Committee Director of Finance Chantelle Green Fiscal Year 2027-2032 Financial Forecast
FROM:
SUBJECT:
DATE:
June 25, 2026
PURPOSE OF MEMORANDUM To request approval of the fiscal year (FY) 2027-2032 financial forecast. KEY POINTS • The Maryland Transportation Authority (MDTA) remains in compliance with its financial goals and legal standards through FY 2028. • The financial forecast update incorporates: o The receipt of $2.1 billion in litigation settlement proceeds from the owner and operator of the cargo ship that struck the Francis Scott Key Bridge. o The adoption of a new unrestricted cash target beginning in FY 2027. The unrestricted cash target equals the next year’s operating budget (excluding MDTA Police reimbursable expenses and extraordinary one-time expenses). o The Draft FY 2027-2032 Consolidated Transportation Program (CTP). o The Final FY 2027 Operating Budget. • Key Bridge Rebuild costs are modeled with federal reimbursement 1 , net of insurance and litigation settlement proceeds. The timing of the required toll increase has changed as a function of delayed financing needs. The shift in Key Bridge Rebuild Project cashflows, the receipt of litigation settlement proceeds, and the modeled receipt of $217 million in federal Emergency Relief funds as a funding source in FY 2027 have impacted debt service requirements. • Based on current forecast estimates, no later than FY 2029, a systemwide toll increase will be necessary to maintain 2.0 times debt service coverage throughout the remainder of the FY 2027-2032 program period. Tolls were last increased in FY 2014, with the revenue increase partially reduced by toll rate reductions in FY 2016.
1 Title 23 U.S.C, Section 125 (2025 Federal Highway Administration, Emergency Relief Program)
2310 Broening Highway • Baltimore, MD 21224 • mdta@mdta.maryland.gov • 410.537.1000 • 711 (MD Relay) • mdta.maryland.gov • DriveEzMD.com
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