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Connect Transit presents balanced 2026 budget, flags fleet and insurance cost pressures
Summary
Connect Transit told the Common Council it balanced a $12,476,365 operating budget for 2026 and reported improvements in federal oversight, but officials warned rising insurance and workers' compensation premiums and a large fleet replacement need will pressure future finances.
Connect Transit officials presented their 2026 budget to the South Bend Common Council during a public hearing on Bill 57‑25 but no council action was taken; the ordinance will return for third reading in two weeks.
Chris Kubzak, chief presenter for Connect Transit, said the transit authority balanced its 2026 operating budget at $12,476,365 and that the agency continues to rely mainly on local, state and federal funding streams. He noted the authority recently completed a Federal Transit Administration review with no findings — “the first time in over 20 years,” he said — and cited fleet, insurance and workers’ compensation costs as the principal pressures.
Kubzak told the council the agency operates about 50 fixed‑route vehicles and 20 paratransit vehicles and that major 2026 concerns include capital bus replacement: 16 buses are eligible for replacement in 2026 and a further six through 2028. He warned that a shortfall in local matching funds could jeopardize federal capital grants because the Federal Transit Administration expects local matching commitments when vehicles are ordered.
On revenue composition, the presentation noted roughly 41% of operating revenue comes from local taxes, about 17% from state PMTF (Public Mass Transportation Fund), approximately 12% from passenger fares and smaller shares from federal maintenance funds and advertising. Kubzak also described internal efforts to improve operational efficiency before altering service levels and said Connect Transit will negotiate a union contract in 2026 for drivers and maintenance staff.
The public hearing closed with no speakers in favor or opposition, and council members did not take action on the ordinance this meeting.
