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Transit leaders warn of Medicaid and O&D funding shortfalls that could force ride reductions
Summary
At the Jan. 9 Senate Transportation hearing, agency leaders warned of looming fiscal gaps — GMT estimated roughly $3 million needed in FY28; agencies reported Medicaid program losses and scaling limits in on‑demand (O&D) grants — and raised concerns that reduced funding could force cuts that disproportionately affect medical and mobility‑dependent riders.
Transit agency leaders told the Senate Transportation committee on Jan. 9 that declining grant capacity, rising insurance and operating costs, and pending state budget choices pose a substantive threat to both urban and rural transit service levels.
Clayton Clark, general manager of Green Mountain Transit, said GMT's fiscal year 2027 budget is "in the red by about $800,000," but told senators the more significant risk is fiscal year 2028, when GMT projects a roughly $3,000,000 gap and said carbon‑reduction funds that previously helped backfill operations may be unavailable. "If we are told to live within our means then we are gonna have to…
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