Muskegon Area Transit reports mixed ridership in 2024, seeks state, federal funding for FY26

Muskegon Area Transit System reported modest year-over-year ridership gains overall while asking the Transportation Services Committee to approve a slate of federal and state funding requests for fiscal year 2026.

At the committee meeting, Jim Goons with Muskegon Area Transit System summarized the agency’s December operations report, which the transit director said reflects the full 2024 calendar year. “Our fixed route program was up 5% from the prior year,” he said. “The Americans with Disabilities Act paratransit service … was up 13% for the calendar year, and the micro transit was down 6% from the prior year.” Goons added that overall ridership was up about 2% year over year.

The rise in fixed-route and paratransit service follows earlier service realignments and post‑COVID travel-pattern changes, Goons said. He attributed the microtransit decline partly to fewer service hours and staffing challenges at the provider.

Why it matters: the committee must approve submittals and authorizations so Muskegon County can compete for federal formula funds, competitive regional grants and state operating/capital assistance that support vehicle purchases, preventive maintenance and marketing.

Committee members approved two motions tied to transit funding and planning. First, the committee voted to approve the list of projects the county submitted to the West Michigan Shoreline Regional Development Commission (the region’s federally designated metropolitan planning organization) for inclusion in the fiscal 2026–2029 Transportation Improvement Program; the motion was moved by Commissioner Nash and supported by Commissioner Hayskamp. Second, the committee approved the county’s FY26 application to the Michigan Department of Transportation for operating and capital assistance, including a resolution of intent to apply and naming the county administrator as transportation coordinator; that motion was moved by Commissioner Nash and supported by Commissioner Page.

On the FY26 state application, Goons reviewed the types of funding requested: local bus operating assistance (state reimbursement rates vary by year), state capital assistance to match federal grants, outreach and marketing funds to support a transit marketing specialist and reimbursement for contractor marketing, and federal programs administered with state match such as sections 5307, 5310 and a proposed 5304 community research study. He said the agency will request funding for a community research study to measure resident opinions about public transit and to inform possible next steps on the transit authority discussion.

Goons said the state’s operating reimbursement rate is expected to be unusually low in FY26: “we're expecting only 26% reimbursement in 2026, which is the lowest that we've had in history.” That estimate was presented as the agency’s expectation; committee members asked how the FY26 plan was developed and whether outreach and marketing increases reflected a shift toward a larger authority effort.

On outreach, Goons said the budget increase would support a transit marketing specialist’s work — billboard campaigns, brochures and the system website — and would reimburse contractor marketing for the microtransit operator. Regarding the proposed community research (5304) project, Goons said methods would be detailed in any future request for proposals if MDOT funds the project.

The motions passed on voice votes; no roll-call tallies were recorded in the transcript.

Ending: Committee members did not alter the staff-requested project list or the FY26 application requests. Goons said the December report and the FY26 packet reflect the agency’s priorities as it continues discussions about a potential transit authority and prepares for federal and state grant cycles.