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Transit Authority Faces $2 Million Funding Crisis

September 25, 2024 | Grand Isle County, Vermont


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Transit Authority Faces $2 Million Funding Crisis
In a recent government meeting, officials from the Green Mountain Transit (GMT) discussed the organization's financial challenges and the potential impacts on Franklin and Grand Isle Counties. The meeting highlighted the ongoing struggle to balance service costs with revenue, a situation exacerbated by the pandemic.

Four years ago, GMT faced a similar financial predicament, prompting discussions about service reductions. However, the arrival of federal relief funds during the pandemic provided a temporary reprieve, allowing GMT to maintain operations and even implement a fare-free service model. This financial support, totaling approximately $18 million, has been crucial in bridging the gap between service costs and revenue.

As GMT approaches the end of its fiscal year, officials reported that only $2 million of the relief funds remain, which is expected to be depleted by the first quarter of the upcoming fiscal year. This situation has created a projected $2 million funding gap for fiscal year 2026. In response, the GMT Board of Commissioners has initiated a review process to identify potential service reductions, targeting a total of $3 million in cuts to provide flexibility and ensure that not all proposed reductions will be necessary.

The board's proactive approach aims to mitigate the impact on local communities, with officials expressing optimism that the outcome will result in either no service reductions or improved services for residents in Franklin and Grand Isle Counties. A detailed plan outlining the proposed service adjustments was released on August 27, signaling GMT's commitment to addressing its financial challenges while maintaining essential transit services.

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