Committee backs change to transportation surcharge program to shore up fund for wheelchair-accessible rides

The Montgomery County Council Transportation and Environment Committee voted by unanimous consent March 24 to recommend approval of Executive Regulation 18-24, a set of changes to the Transportation Services Improvement Fund (TSIF) intended to stabilize the fund’s finances.

The regulation updates how the 25¢ per-ride surcharge on transportation network company trips is spent, trimming certain reimbursements and aligning payouts with confirmed passenger service. Committee Chair Glass and staff said the changes are designed to prevent the fund from becoming insolvent while keeping services for seniors, people with disabilities and low-income residents.

Council staff presented the financial rationale for the changes, saying the TSIF — funded entirely by the 25¢ surcharge on TNC trips — had been drawing down its accumulated balance and, without changes, was projected to reach a negative $8,000,000 by fiscal year 2030. Staff said pre-pandemic annual revenues were about $2,400,000 and are now trending roughly 10% below that level (about $2,100,000).

The regulation makes three primary reimbursement changes: it reduces the per-trip wheelchair-accessible vehicle reimbursement from $25 to $20; it limits the 40¢ per-mile reimbursement to only the miles traveled while actively serving a passenger; and it caps reimbursable trips at those under 75 miles from the pickup location, consistent with the county’s definition of local travel. Staff said those changes narrow reimbursements to verified passenger service and nearer-range trips to better align expenditures with available revenue.

DOT officials and Transit Services staff gave background on related program changes that have already been used to increase wheelchair-accessible taxi capacity. Under earlier grant provisions, vehicle buyers received $15,000 paid in three disbursements; staff said the program was changed so operators receive the full $15,000 once they produce documentation that a wheelchair-accessible vehicle is in service. Officials said they had proposed a $30,000 incentive in a later revision and that the council approved $45,000, with the larger amount available once documentation is provided.

Transit staff told the committee that the program has increased accessible capacity: in February 2013, officials said there were about 820 taxi cabs in operation and 26 wheelchair-accessible vehicles; today those figures are roughly 200 cabs and 80 wheelchair-accessible vehicles, demonstrating program uptake but also driving the need to preserve future funding.

Officials also said an Inspector General audit had identified questionable or fraudulent trip claims in past years; limiting mileage reimbursements to passenger-carrying miles and tightening verification should reduce those improper payments, staff said. The county executive’s proposed FY26 operating budget also includes a roughly $991,000 adjustment in the transit services section tied to this fiscal picture, staff noted.

Committee members pressed staff on equity and geographic coverage. Councilmember Balcom and others asked whether reducing per-trip reimbursements or limiting mileage reimbursements might disincentivize drivers from serving more remote parts of the county; staff replied they would monitor locations and adjust the regulation if revenue or service patterns required it. Members asked about outreach; DOT staff said the Taxi Cab Services Commission, Commission on Aging and Commission on People with Disabilities had been consulted and generally supported the changes.

"Without any objection, we'll support this regulation," Chair Glass said after discussion, and the committee moved the regulation forward to the full council with that recommendation.

The committee record shows discussion, monitoring commitments and a recommendation to approve the regulation; no formal roll-call vote was recorded in the transcript beyond the unanimous consent to advance the measure.

Looking ahead, staff said they will monitor fund receipts and service levels and return with adjustments if necessary, and they noted that if revenue improves the regulation could be revised to increase reimbursements.