Iowa’s largest public transportation agency facing significant cuts

Metro bus routes will face vital cuts within the subsequent yr if efforts by Des Moines Space Regional Transit Authority (DART) to diversify its funds fails, CEO Elizabeth Presutti tells Axios.

Why it issues: DART is Iowa’s largest public transportation company, offering hundreds of thousands of rides annually.

• Most of its shoppers come from low-income households and almost half do not have a driver’s license.

State of play: A whole bunch of hundreds of {dollars} in annual state assist to DART is being phased out. And the company misplaced $4 million since 2017 as a result of adjustments in how medical transportation prices are paid through Medicaid.

• Sure, and: Ridership continues to be about 20% decrease than earlier than the pandemic and vital labor shortages have contributed to funds pressures.

Driving the information: Greater than $7 million in federal pandemic funds helped the company steadiness its $40.1 million funds within the fiscal yr that ends in June 2023.

• Thousands and thousands of {dollars} in annual funds shortfalls are projected with out new income or service cuts, Presutti mentioned.

Zoom in: Greater than 60% of DART’s income comes from property taxes.

• Company officers have for years requested lawmakers for the flexibility to faucet into different income streams, probably through a public transit tax paid by resort and motel customers.

What’s occurring: Lawmakers appointed a committee this yr to assessment funding options, together with the hotel-motel proposal.

• A committee report is anticipated this week and will affect actions within the 2023 legislative session.

In the meantime, a $68 million plan to relocate and construct new services has grown to greater than $100 million as a result of inflation and site challenges.

• Choices linked with that venture, together with a doable website, are being reviewed and can possible be introduced subsequent yr, Presutti mentioned.

The massive image: Transit methods throughout the nation face a few of the identical challenges.

• A “fiscal cliff” is on the horizon for some as federal coronavirus reduction cash runs out, in accordance with Governing, a publication that covers authorities administration tendencies.

Of notice: Presutti is stepping down within the subsequent few weeks to hitch her husband who’s taking a job in North Carolina.

• She’s been the general public transit’s CEO for 11 years.