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State officials warn of transit funding shortfall, urge cautious cuts to avoid 'death spiral'

State Transportation Committee (hearing) · February 18, 2026
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

State transportation staff told a legislative committee Feb. 17 that recent funding increases and FHWA flexing have helped preserve services but that a projected $560,000 shortfall in 2027 could force cuts; staff said they are modeling options to avoid a service 'death spiral.'

Ross McDonald, public change program manager, told a legislative committee on Feb. 17 that the state is modeling how to maintain transit service levels amid tight budgets and a projected shortfall.

McDonald said the state has been moving FHWA flex dollars into transit—about $4.8 million in recent practice—and that, despite providing a record $4.85 million to support urban transit this year, the agency faces continued pressure. “We don’t leave federal dollars on the table,” he said, describing the trade-offs inherent in flexing highway funds to preserve transit hours and…

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