Green Mountain Transit warns of fiscal cliff; FY27 gap narrowed but FY28 could force steep service cuts
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Summary
Finance director Nick Foss told the House Transportation Committee GMT narrowed an FY27 deficit to about $560,000 but faces a FY28 gap of roughly $2.7M–$3.25M once COVID relief funds end; GMT said service cuts of 7–10% driver hours in FY27 and up to ~30% service in FY28 are possible without new or restructured funding.
Nick Foss, director of finance for Green Mountain Transit, told the House Transportation Committee on Feb. 17, 2026, that GMT’s FY27 budget was passed with an $841,000 deficit and management has reduced that projected shortfall to about $560,000 but still needs additional savings. Foss said the more serious problem comes in FY28 when one‑time COVID and ARPA funds are exhausted: "by '28... all of the money... are really gone" and the agency faces a gap of about $2.7M to $3.25M.
Foss said GMT has relied on roughly $15M in pandemic‑era one‑time funds (three batches including CARES/CRRSA and ARPA) that are being spent down and will not return. He told the committee that, absent a sustainable funding solution, GMT could close FY27’s gap through a combination of measures, but deeper reductions in FY28 could require cutting roughly 30% of service if permanent revenues are not found. For FY27, management estimated service or pay‑hour reductions in the 7–10% range if savings must come from operations.
Committee members asked about the causes: Foss and GMT management pointed to inflation, higher wages and benefits, rising commercial insurance, the absorption of overhead following a rural service transfer, and growing ADA/paratransit costs. Foss quantified the system as a roughly $31,000,000 operating budget with about $20,000,000 in urban service and $11,000,000 in rural service and said GMT employs about 180 people.
The committee discussed specific route impacts: GMT said it has already reduced urban service by 19% and driver FTEs by about 22%. One route — the Essex circulator (Route 4) — costs roughly $28 per ride versus a system average of about $7.48 per ride; GMT said that route averages about four riders per run and roughly 40 rides a day (about 20 people) and could lose fixed‑route service in early FY27 unless an alternative is found.
Foss and Clayton told legislators GMT is exploring revenue options including unlimited‑access agreements with employers and schools, an affiliated nonprofit to pursue grants and fundraising, and a request to change statute language that currently limits how GMT can raise local match (statute requires 3/4 of member legislative bodies to approve changes). They also flagged uncertainty about the federal surface transportation bill (expires in September) and the possibility of changes to performance awards that fund roughly $2,000,000 a year for GMT.
The committee did not vote on any state action during the hearing. GMT said it will present statutory language to committee chairs and seek further conversations with members and stakeholders ahead of budget decisions for FY27 and FY28.
