Oshkosh transit staff unveil budget pressures, propose scaling back round‑the‑clock paratransit

Oshkosh City transit staff outlined the transit division’s 2025 budget and recommended changes on Nov. 5, saying federal and state grants cover roughly half of operating costs while the local tax levy has remained a relatively small, stagnant share.

The transit presentation, led by staff member Scooter, said the local levy “is only about 20% of our total budget” and described heavy reliance on federal CARES Act and ARPA dollars and fund balance to smooth local costs. Scooter told the meeting, “At some point in time we’re at capacity and we’ll continue to make do,” and said the city must consider reducing after‑hours paratransit service because of vendor reluctance to bid and staffing limits.

Why it matters: transit officials said continuing to subsidize after‑hours service is expensive and shrinking vendor competition is increasing costs. They recommended the council discuss a plan to match paratransit hours to fixed‑route hours (roughly 6:15 a.m. to 6:45 p.m. Monday–Saturday) and to steer after‑hours trips toward the existing Access to Jobs program or private vendors where appropriate.

Key details

- Funding mix: Scooter said federal and state sources historically cover about 50–60% of the system and fares plus local partners (Winnebago County, Fox Valley Technical College, United Way and University of Wisconsin–Oshkosh) lower the local share. - Local levy: staff said the levy portion has been kept “pretty steady” in recent years by drawing on fund balance when underspending occurs. - After‑hours paratransit: officials said roughly 10% of paratransit trips occur after fixed‑route hours; vendors have told the city after‑hours service greatly increases their costs and operational difficulty and some bidders have stopped offering it. Scooter said, “We are the only transit agency in the state that offers 24/7.” - Vendor/contract approach: staff plan to buy ride scheduling/dispatch software to improve monitoring and vendor performance and to pursue microtransit options if a capable vendor emerges. - EAA shuttle and special events: transit staff flagged declining ridership and staffing problems for the EAA shuttle (about 20,000 rides this past year, down roughly 28%); federal “charter plus” rules limit charging premium fares for events. - Capital and facilities: staff reported using ARPA funds for a fire‑suppression system at the transit garage and progress on Phase 2 of the downtown transit center, including a second platform and a small public building with restrooms and a climate‑controlled waiting area.

What officials said

Scooter (transit staff): “The local levy share of the transit point is is only about 20% of our total budget.” He also warned, “If we don’t alter that service, we’ll continue to receive 1 or 2 bids at the best, and that cost and service is gonna suffer.”

Council discussion and next steps

Council members asked about levy impacts and alternatives; one councilor noted the 2025 proposed levy increases the transit levy portion by about $300,000 and asked whether the city could draw more on fund balance instead. Staff said the proposal to change paratransit hours is on the Transportation Committee agenda for Nov. 12 and that the city will hold a public hearing as part of that committee review and will coordinate with Winnebago County and the ADRC.

The committee review and the public hearing will give residents and service partners a chance to weigh in before any final change. Transit staff said they will return with modeled impacts on vendor cost, ridership and the budget.