EUPTA approves FY2026 budget amid state funding uncertainty
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Summary
The Eastern Upper Peninsula Transportation Authority board passed its FY2026 budget, while Finance Director Ms. Gordon warned that proposed state conditions and incomplete federal allocations leave key reimbursements and service impacts uncertain.
The Eastern Upper Peninsula Transportation Authority board voted to adopt the authority's FY2026 budget at its Sept. 5 meeting, approving proposed operating plans for ferries, bus service and administration.
Finance Director Ms. Gordon told the board the House version of Local Bus Operating (LBO) funding includes a $59.8 million allocation to the dedicated CTF but carries a proposed 6% fare-box recovery requirement that EUPTA would not meet. Ms. Gordon said the Michigan Public Transportation Association (MPTA) does not support the proposed stipulation and that distribution under currently available plans could range from about 28% to 34.5% reimbursement. She also said EUPTA is one of two authorities in the region that do not receive a local millage and that the authority expects to receive an 18% federal reimbursement; ferries are expected to receive 50% reimbursement under Act 51.
Board members expressed concern about the number of unknowns in state and federal budgets and the potential for reduced reimbursements to affect service levels. Ms. Gordon told the board the FY2026 budget presented reflects what staff currently know about expected state and federal support and shows an approximate 5% overall increase compared with the prior year.
The board approved the budget on a motion by Lynda Garlitz, seconded by Brandon Wheeler; the motion carried by unanimous vote as recorded in the meeting minutes.
Why it matters: EUPTA serves communities in the eastern Upper Peninsula; potential cuts or new eligibility rules for state LBO funds and changes in federal reimbursements could force choices about service frequency, fares or vehicle replacements. The authority does not have a local millage to offset shortfalls, increasing its exposure to state and federal policy changes.
What happens next: Staff will continue monitoring final state and federal appropriations and will report updates to the board as funding assumptions change. The minutes note staff had asked MPTA for more definition about the proposed funding stipulations.