Iowa's largest public transportation agency facing significant cuts
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Metro bus routes will face significant cuts in the next year if efforts by Des Moines Area Regional Transit Authority (DART) to diversify its budget fails, CEO Elizabeth Presutti tells Axios.
Why it matters: DART is Iowa's largest public transportation agency, providing millions of rides each year.
- Most of its clients come from low-income households and nearly half don't have a driver's license.
State of play: Hundreds of thousands of dollars in annual state aid to DART is being phased out. And the agency lost $4 million since 2017 due to changes in how medical transportation costs are paid via Medicaid.
- Yes, and: Ridership is still about 20% lower than before the pandemic and significant labor shortages have contributed to budget pressures.
Driving the news: More than $7 million in federal pandemic funds helped the agency balance its $40.1 million budget in the fiscal year that ends in June 2023.
- Millions of dollars in annual budget shortfalls are projected without new revenue or service cuts, Presutti said.
Zoom in: More than 60% of DART's revenue comes from property taxes.
- Agency officials have for years asked lawmakers for the ability to tap into other revenue streams, possibly via a public transit tax paid by hotel and motel users.
What's happening: Lawmakers appointed a committee this year to review funding alternatives, including the hotel-motel proposal.
- A committee report is expected this week and could influence actions in the 2023 legislative session.
Meanwhile, a $68 million plan to relocate and build new facilities has grown to more than $100 million due to inflation and location challenges.
- Options linked with that project, including a possible site, are being reviewed and will likely be announced next year, Presutti said.
The big picture: Transit systems across the nation face some of the same challenges.
- A "fiscal cliff" is on the horizon for some as federal coronavirus relief money runs out, according to Governing, a publication that covers government management trends.
Of note: Presutti is stepping down in the next few weeks to join her husband who is taking a job in North Carolina.
- She's been the public transit's CEO for 11 years.