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Transit staff warn of federal funding delay, board approves coordination plan amid software and staffing strains
Summary
Staff told the board that an FTA processing delay may postpone FY25 operating and administrative funds until December, warned some small transit agencies could reduce services, and the board approved its annual transit coordination plan while staff outlined driver shortages and scheduling-software problems affecting riders.
Speaker 4 reported that the Federal Transit Administration was unable to approve the agency’s FY25 ‘‘53.11’’ application before a fiscal-year-end shutdown and warned the delay could push funding disbursements into December. "The FTA was unable to approve our grant application before the fiscal year end shutdown," Speaker 4 said, adding that DOT staff have contacted the FTA and "would like to work to expedite the funding" once the system reopens.
The update covered two grant threads. Speaker 4 described a packet item tied to the Infrastructure Investment and Jobs Act, listing purchases the award would cover — "shop tools, computers, dispatch software, and tires" — and noting an 80% federal share and a 20% local share. The board was told the city’s budgeted reserves would let Palace Transit continue operations, but Speaker 4 cautioned that smaller agencies without reserves "may not be as lucky and they have to close down or reduce services."
Why it matters: operating and administrative FTA funds support routine service and staff costs. A multi-month delay in awards and funding agreements can force some rural or small transit agencies to cut routes or delay hiring, the board heard.
Board action and immediate steps: The board approved its required annual transit coordination plan after Speaker 4 presented the update. Speaker 6 moved to approve the plan, Speaker 2 seconded, and Speaker 1 called for a voice vote that passed with ayes (individual tallies were not recorded in the transcript). Speaker 4 said DOT leadership had indicated steps to expedite disbursement once the FTA system is available and that both offices would discuss administrative steps to accelerate payments.
Operational concerns: Separately, health-clinic-affiliated Speaker 3 described how a recent scheduling-software change has led to longer waits for return trips and unpredictable pick-up times, which has caused patient complaints and practical harms for some riders. "By the time that they've been there, sometimes, like, if they have an appointment at 1 ... with the new software ... Now it's whatever is the next available time for them," Speaker 3 said, recounting instances of diabetic patients missing meals and medications because of delayed returns.
Staff responded that the system requires scheduling a return trip and that same-day 'will-call' requests are queued and can result in long waits; part-time driver shortages and a full-time driver out on sick leave have compounded delays. Speaker 4 said two vans have come into service and that hiring additional part-time van drivers is underway.
What the board did not decide: No emergency budget transfers or service reductions were approved at the meeting; staff were directed to monitor the FTA processing timeline and continue coordinating with DOT and the FTA to expedite disbursements.
Next steps: Staff will report back as grant approvals and funding agreements are finalized. The coordination plan is in effect following the board’s approval.
