Study recommends transferring Green Mountain Transits rural routes to regional operators to save costs

A consultant presented to the Senate Transportation Committee on Tuesday a financial study recommending that Green Mountain Transits rural services be transferred to regional providers to reduce operating costs and preserve statewide transit funding.

The studys author, Steve Pfauber, said the report compares GMTs per-hour and staffing-based costs to those of other Vermont providers and concludes that moving rural service to providers such as RCT and TBT could lower annual operating costs statewide by roughly $1.2 million once transitions are complete. "The recommendation is that Washington County service be transferred to TVT," Pfauber said during the presentation.

Why it matters: The study was requested in the transportation legislation from the prior session and responds to a growing fiscal gap driven by rising operating costs, changing federal relief funding and flat state and local revenue. Committee members and presenters said savings on rural unit costs could free limited state Medicaid and public-transit funds for other services.

Key findings and recommendations

- Cost gap: Using fiscal 2024 inputs and updated first-quarter fiscal 2025 numbers, the study found GMTs reported rural hourly rate rose substantially; updated Q1 2025 data show GMTs rates outpacing other rural providers. The consultant summarized potential net savings after full transition of about $1.2 million annually.

- Medicaid trips: Pfauber reported GMTs cost per Medicaid passenger trip…