Agency presents driver-pay differences and recommends scaling MTI grants back to core level

Ross McDonald presented data to the committee showing wide variation in driver compensation across regions and providers and outlined recommendations for the state Mobility & Transportation Innovation (MTI) grant program.

McDonald said wage data gathered from providers show annual pay commonly between $50,000 and $70,000 for bus drivers and that health-plan contributions differ by employer; "a few of our union shops, GMT and TVT, pay a 100%" of health costs while other providers report employee contributions up to 25 percent. He described compensation as driven by regional labor markets and negotiations rather than a single statewide policy.

On the MTI program, McDonald reviewed that annual awards have fluctuated (about $894,000 in 2023 to just over $1,000,000 in the most recent year), including $500,000 in one-time microtransit support and a $600,000 allocation for volunteer recruitment from recent legislative funds. He said the program funds TDM activities (telework policy support, first/last-mile projects, bike-share, e-bikes) and partnership grants (Car Share Vermont and regional TMAs), but added that MTI projects have not demonstrated clear greenhouse-gas reductions or route-level ridership increases of the scale that would justify larger recurring funding.

McDonald recommended maintaining the MTI grant process for one-time funds and proven partners but returning recurring MTI funding to roughly $300,000–$350,000 annually and shifting some bike/ped awards to other programs or departments better equipped to administer them. He said staff will continue to track outcomes and present slides and survey results to the committee for further review.

The committee thanked McDonald and Green Mountain Transit for the briefing and signaled further follow-up during budget deliberations.