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Committee hears proposal for $825,000 transit match/grant pool; action deferred
Summary
Senate Bill 195 would create revolving loans and grants to help local public transit providers meet federal matching requirements. Proponents stressed benefits for seniors, veterans, Medicaid riders and workforce; the committee deferred action for further review.
Senate Bill 195, which would appropriate $825,000 to create a pool of revolving loans and/or grants to help public transit providers meet local matching requirements, was discussed and left pending for follow‑up.
Senator Randy Deibert, the bill sponsor, said the program is intended to help rural and small urban transit providers meet federal match rules (typically 10–20%) so they can leverage larger federal capital and operating awards. Eric Erickson with the South Dakota Transit Providers explained that current federal funding (Section 5307/5311 programs) leaves providers reliant on local matches and that small counties and communities struggle to raise the required local share quickly.
Several transit operators from around the state described operational pressures and the leverage a modest state match can provide. Barb Klein of Prairie Hills Transit said a $23,000 state match can unlock a $115,000 bus purchase for a rural provider. Gail Klute of People’s Transit in Huron described the gap between fare revenue and actual costs (she cited an average ride cost of about $11.40 while rider fares are $2.50–$3.50). Megan Goldstebele of Rapid Transit System told the committee the Rapid City youth‑ride‑free program has delivered hundreds of thousands of youth trips since 2016 but that local match constraints limit expansion.
The Bureau of Finance and Management raised questions about program structure, noting DOT already administers federal transit grants and that DOT does not currently operate loan programs for transit providers. Brandy Meissner asked how loans would be capitalized, what collateral or interest rules would apply, and how non‑payment would be handled.
Senator Deibert said the concept is flexible: the appropriation could be used for faster grants in some cases and loans in others, analogous to existing state programs that use scoring criteria. The committee deferred action on SB 195 for further work with the Department of Transportation and stakeholders; no final committee vote was taken at this hearing.
