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Eastern Upper Peninsula Transportation Authority approves FY2026 MDOT application, accepts Chippewa County resolution seeking state support
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Summary
At its Jan. 3 meeting the Eastern Upper Peninsula Transportation Authority Board approved a Resolution of Intent to apply to the Michigan Department of Transportation for FY2026 operating funds, accepted a Chippewa County resolution requesting $1.5–3 million in state aid over three years, and discussed looming MDOT rate cuts that could force service or contract changes.
The Eastern Upper Peninsula Transportation Authority Board on Jan. 3 approved a Resolution of Intent to submit its FY2026 application to the Michigan Department of Transportation and accepted a Chippewa County Board resolution requesting $1.5 million to $3 million in state support over a three-year period.
Finance Director Ms. Gordon told the board the FY2026 MDOT application is due Feb. 1 and is necessary to secure operating funds that, together with federal and local revenues, support bus and ferry services. She said estimated system expenses exceed $5.4 million and the budget as presented is balanced only if that funding is obtained.
Ms. Gordon described recent reimbursement volatility in the state Local Bus Operating (LBO) formula, noting a one-time bump to 40% in 2024, a 2025 rate of 35.085%, and that “we have been told for FY2026 to plan on only 30%.” She said the expected reduction — roughly a 10% decrease from current funding levels — may require the authority to review contract rates for 2026. The board did not adopt specific rate changes at the meeting.
The board also reviewed operational items tied to funding and service delivery. Ms. Gordon said the agency took delivery Nov. 5, 2024 of an Equinox vehicle for Non-Emergent Medical Transportation that was purchased with grant funding and required no local dollars. She said bus fares and passenger counts are down slightly from the prior year; ferry fares and vehicle counts are up about 3% while ferry passengers were down about 1%. She noted ferry operating funds declined when American Rescue Plan Act (ARPA) money ended and that there is not federal operating funding available for ferries (federal operating funds apply to bussing only).
On audit and compliance, Ms. Gordon said the FY audit should be complete in February with presentation scheduled for the board’s March meeting. The director summarized a Transportation Security Administration assessment conducted Dec. 16, 2024 that tested driver pre-trip checks by planting foreign backpacks on buses; staff found the test items and a follow-up debrief and training was scheduled for Jan. 16.
The board unanimously approved the Resolution of Intent to apply for the FY2026 MDOT grant and voted to accept the Chippewa County Board of Commissioners’ resolution asking the Michigan Legislature for $1.5–3 million in assistance over three years. Motions to approve the agenda, approve the Dec. 3, 2024 minutes, approve the MDOT-resolution intent, accept the Chippewa County resolution, and to adjourn were all moved and seconded and carried by unanimous vote of members present (John Waltman, Brandon Wheeler and Lynda Garlitz). Two members, Nick Huyck and Joe Henne, were recorded as excused.
The board noted one change to its composition: the director reported that board member Nick Huyck will not seek re-election. The meeting ended at 10:56 a.m.; the authority scheduled follow-up items including the March audit presentation, a Jan. 16 debrief/training related to the TSA assessment, and solicitations for a D5 naval architect contract in advance of spring dry-docking.