Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Tag Finances topic
No spam. Unsubscribe anytime.
TAG warns committee of sharp vehicle and insurance cost increases despite large state contract
Summary
TAG told the Budget Committee it has expanded under a Connecticut DOT contract approaching $6 million but faces steep cost pressure: accessible vehicles now cost $130,000–$150,000 and annual commercial insurance rose from under $200,000 to over $500,000.
Mike Miller, president of TAG, briefed the BET Budget Committee on the nonprofit's operations and an acute set of financial pressures even as TAG's state contract expanded.
Miller said TAG provides ADA-compliant paratransit and Dial-A-Ride services (about 70,000 rides annually) and operates a mix of town-supported core services and self-funded expanded programs. The Connecticut Department of Transportation contract that began at roughly $3 million has grown to about $6 million as service needs increased; that larger contract has funded a much larger fleet and additional drivers.
"A vehicle that TAG would purchase pre-pandemic for about $50,000 to $60,000 now costs somewhere between $130,000 to $150,000," Miller said, adding that financing costs and insurance have also risen sharply. "What previously cost us less than $200,000 a year for all of our insurance lines now is over $500,000 annually." (Michael Miller)
Miller asked for a timely release of half of TAG's annual town contribution to meet an insurance deposit due in early July; the committee asked staff to circulate TAG's materials to all BET members and noted the regular December release will cover the second payment. Committee members praised TAG's community role and asked for follow-up information on contract escalators, fuel assumptions and contingency plans should one large contract change.
The committee treated the update as informational and agreed to circulate Miller's materials to the full BET; the formal release of additional town funds will follow the usual schedule and documentation process.
