Bloomington Transit outlines $19.4M 2026 budget, seeks FTA grant for new operations facility

Bloomington Transit presented its proposed 2026 budget to the Bloomington Common Council on Sept. 3, and its general manager said the transit corporation is positioning ED-LIT funds to support a federal discretionary grant application for a new administration, operations and maintenance facility.

John Connell, general manager of the Bloomington Public Transportation Corporation (BPTC), told council members the BPTC board reviewed and recommended the 2026 budget. He said the agency plans to combine 2025 and 2026 city Economic Development and Local Income Tax (ED-LIT) funds to serve as the local match for an FTA 5339 discretionary grant the agency has submitted for land, design and construction of a new facility. Connell said the anticipated total project cost is $45,000,000 and that BPTC has executed a right-of-first-refusal agreement for the prospective property while NEPA Phase I is complete and Phase II was underway.

Connell outlined the 2026 budget totals: personnel (Class 1) slightly over $9,000,000; materials and supplies (Class 2) about $1.5–1.6 million; professional services $3.4 million; capital $5.2 million; and a total 2026 budget of $19,383,402. He said personnel costs reflect a 3.92% increase overall, including a 4% general wage increase and additional service hours to restore pre-pandemic levels. Connell said BT plans to use about $824,870 from reserves to balance the budget.

The presentation emphasized recent capital outcomes funded with local ED-LIT matching aid: purchase of 16 battery-electric buses and charging infrastructure, microtransit vehicles, and new dispatch/scheduling platforms. Connell told the council BPTC absorbed Sunday fixed-route service and the Blink microtransit pilot, added two staff positions (grant procurement and marketing/development), and plans to continue those programs in 2026 while freeing ED-LIT funding for the large facility grant match.

Connell said BPTC’s ridership rose 4% year-over-year and the agency expects more growth in fall semesters; passenger fares are budgeted to increase 27% to $2.5 million. He noted operating savings from battery-electric buses — “a battery electric bus cost per hour is 27¢ per mile. Cost per mile for a diesel bus is 80¢” — and that electricity costs in the budget are projected higher while diesel fuel spending declines. He also said BPTC plans to prepare for potential local funding changes prompted by state legislation (Senate Bill 1) and will “begin discussions with Monroe County for the adoption of a LIT rate for a special taxing unit for transit,” noting the possibility of expanding BPTC’s board from five to seven members to include county representation.

Council members asked about reserves (Connell said reserves would be approximately $10,000,000 after a $525,000 draw), the union contract (AFSCME, expiring Dec. 31; negotiations and ratification pending), the vendor procurement and NEPA status for the new facility, and microtransit and service expansion metrics. Connell said NEPA Phase II was expected to finish in 30–45 days and BPTC had issued a request for qualifications for a build–operate–transfer team.

Connell closed by saying BPTC’s top 2026 priorities are: begin design and construction of the new facility; prepare for the impacts of Senate Bill 1 and update the strategic plan (a $100,000 item in 2026); and expand marketing for the Blink microtransit program (a $100,000 marketing line) to boost ridership.

The council took no formal vote on the transit budget during the presentation; the matter proceeds through the budget ordinance process. Direct quotes in this report are from John Connell during the Sept. 3 presentation.