Michigan transit providers warn against cuts as funding fails to keep pace with rising expenses

CATA bus, downtown Lansing | Susan J. Demas

As the state budget process stretches on, members of the Michigan Public Transit Association are calling on Michigan Gov. Gretchen Whitmer and legislative leaders to ensure any deal they may reach on road funding includes support for public transportation services. 

Alongside federal and public funding, Michigan’s public transit systems receive funding from the state based on their eligible operating expenses. In a report released earlier this week, the association warned Whitmer’s proposal of $226 million for local bus operations would result in the lowest reimbursement levels for transportation agencies in the state’s history, continuing a trend of underfunding. 

“Public transit is no longer a luxury; it’s an essential service that Michigan voters strongly support,” John Dulmes, the association’s executive director, said in a statement. “Without necessary funding, local transportation systems across Michigan will be forced to cut routes, reduce service hours and eliminate jobs. This will be disastrous for Michiganders, limiting their ability to get to work, attend school, or travel to necessary medical appointments.”

According to a survey of 31 transit agencies – roughly a third of the number of providers in the state – demand for public transit has increased, with 75% of agencies surveyed reporting an increase in ridership. 

Providers are also seeing an increase in costs, including employee wages and insurance costs, with expenses increasing between 25 and 50% over the past four years. 

While the report noted the largest increases in demand were for medical trips, employment-related trips and school, providers were also considering cuts amid rising costs. 

According to the survey, 69% of agencies had either considered or moved to reduce driver and mechanic hiring. Another 69% of agencies had either considered, or taken efforts to reduce their days or hours of operation. 

Additionally, 92% of providers said they were concerned about depleting their funds or reserves, with the report noting several agencies were relying on a few years of remaining savings to maintain current services.

Should they receive additional funding, 84% of transit providers surveyed reported that they would prioritize expanded services, including longer hours of service, reduced wait times for senior and workforce rides and better use of technology to deliver rides more efficiently.

SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX