Committee hears March budget snapshot, federal 5307 apportionments and ridership declines

Transit accountant Jean Henning presented March year-to-date budget figures and grant updates, and staff summarized route-level ridership declines and state funding changes.

Jean said wages were modestly under budget year‑to‑date but that overtime had overrun by about $156,000 (budgeted at $20,000), driven largely by driver shortages and the need to cover routes. She said healthcare elections produced roughly $117,000 in savings because a substantial share of new hires selected single coverage or no insurance. Staff emphasized that timing on partner billings and federal/state draws affects revenue timing.

Jean also reported that MAP received FTA Section 5307 apportionments; the packet listed Fargo’s apportionment and Morehead’s suballocation and noted an amendment to deobligate a prior Walmart hub project and a submitted 5310 grant with a TIP amendment pending.

Separately, Luke presented route‑level ridership changes: several routes showed double‑digit declines (example ranges in the packet spanned ~8–19% on multiple lines), systemwide ridership was down roughly 7% and pass ridership similarly decreased. Luke and committee members attributed part of the decline to a January fare increase (single rides increased from $1.50 to $2), and staff said they will investigate which rider groups shifted travel behavior and whether targeted pass programs or subsidies could help low‑income riders.

Jordan and other staff also briefed the committee on Minnesota Department of Transportation (MDOT) moves toward a formula-based 2027 funding approach that will more tightly tie state assistance to metrics such as vehicle revenue hours and may increase required local matching shares in 2028; staff noted Morehead/Dilworth agencies are expected to see additional Minnesota operating funding starting in 2027.