Traverse City Record-Eagle

Archive: Saturday

February 11, 2012

BATA: 'Don't know how much money we will receive'

Federal bill could hurt state mass transit funding

By SAODAT ASANOVA-TAYLOR Special to the Record-Eagle

LANSING — County transportation authorities are criticizing a federal bill they say could hurt state mass transit funding by putting it on year-to-year life cycle.

They have called on U.S. Rep. Dave Camp, R-Midland, to send the plan back to the drawing board.

The bill would withdraw fuel tax revenue for the mass transit fund from the Federal Highway Trust Fund and allow the money to be used for general transportation purposes on an annual rather than five-year cycle.

Officials in Camp's office said it would provide the same funding sources for mass transit, and the change means that the account could earn more interest than now.

But critics said the bill does not clarify whether change would generate the amount of money.

"This bill jeopardizes the entire state transit fund system," said Tom Menzel, executive director of the Bay Area Transportation Authority in Traverse City. "It would limit public transit services and drag down long-term projects aimed to develop the state economy."

Menzel said 60 percent of BATA's operating budget comes from state and federal funding. It annually provides about 100,000 bus trips for residents of Grand Traverse and Leelanau counties.

Elders, children, people with disabilities and unemployed residents are the primary users in the two counties, and Menzel said any decrease in funding could harm them.

"If the transit fund goes under the general fund, we don't know how much money we will receive and how many buses we could run. We have to compete with other counties for state dollars," he said.

"It will be hard to measure our operations with an unknown budget and could potentially limit our transit services," he said.

In Manistee County, rising gas prices and unemployment have increased both ridership and operating costs at Manistee County Transportation Inc., said general manager Richard Strevey. Ridership increased by 50 percent between 2008 and 2011.

"When people are out of work or can't afford gas prices, they turn to public transportation. The rise of ridership numbers has increased our costs but instead of cutting jobs, we reduced our operational hours," Strevey said.

Strevey questioned whether the Manistee system would receive the same amount of money under Camp's proposal.

"We have seen cuts in the past on both the state and federal level," Strevey said. "We are right on the edge now, and any further cuts will be disastrous for us."

Vance Edwards, manager of the Cadillac/Wexford Transit Authority, said drastic cuts might force local transportation authorities to seek alternative revenue.

"The only alternative source would be to raise bus fares or increase local taxes to keep quality transportation services for the community," he said.

Saodat Asanova-Taylor writes for Michigan State University's Capital News Service.

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