Green Mountain Transit outlines $3 million savings plan; officials say Grand Isle and Franklin counties likely spared

Green Mountain Transit's general manager, Clayton Kark, told the Regional Planning Commission that the agency faces a budget shortfall as one-time federal COVID relief funding runs out and that staff have been directed to identify up to $3 million in possible service reductions to close a projected $2 million gap in the FY2026 budget.

"One-time funds always eventually run out," Kark said. He said GMT received roughly $18,000,000 in federal relief during the pandemic, and that about $2,000,000 of that funding remains and is expected to be exhausted by FY2026. "We have a target identified of, let's see how to save $3,000,000," he said, adding that the larger target gives the agency flexibility so not every proposed cut must be imposed.

Kark described a phased package of changes, beginning with potential November'December adjustments focused on Chittenden County Saturday service and the Jeffersonville commuter route (which GMT estimates costs roughly $63 per passenger to operate). In February and March, GMT would evaluate link services such as the Montpelier and St. Albans links, including a possible consolidation of the Milton commuter with the St. Albans link. Kark said the consolidation could create new northbound options for Milton riders and might extend the St. Albans link to connect with routes serving Alburgh and Richford.

The biggest cuts, Kark said, would be considered for June and could include elimination of up to three urban routes that serve the most riders. He emphasized the process will include public meetings and legislative review: GMT has held five public meetings so far, has three more scheduled, and is spacing the proposed phases so the legislature could restore funding if it chooses.

Commissioners pressed GMT on alternatives. One commissioner asked whether switching to smaller vehicles in urban service could save money. "The cost savings in our urban area for having a smaller bus is actually almost negligible," Kark replied, citing capital lifespans (12+ years for heavy-duty buses vs. 5'6 years for smaller buses) and added that operating costs are dominated by salaries and CDL driver rules for vehicles carrying more than 14 passengers.

Kark also described a legislative request to study whether GMT should remain a single agency providing both urban and rural service. He said a recent study suggested it could be more cost-effective for other providers (SSTA or RCT) to operate on-demand services for older adults and Medicaid/mobility programs, while GMT would retain fixed-route service. If a transfer occurred, Kark said, the change could take effect as early as July 1, 2025, and would likely lead to labor-relations activity because the other providers are nonunion.

On local impacts, Kark said, "for these two counties (Franklin and Grand Isle) the impacts are either nothing or better service," noting island communities are protective of their current services and that GMT intends to avoid changes that would reduce service there.

The presentation concluded with an invitation for more public comment and a reminder that the GMT board will take public input into account before making decisions.

Next steps: GMT will complete three additional public meetings, conduct further analysis of route consolidations and on-demand provider options, and the GMT board will consider the public input and staff recommendations before deciding which, if any, reductions to adopt.