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Council hears $2.1M federal funding loss for transit; staff outline cautious options
Summary
Staff said Amarillo's reclassification as a large urbanized area reduced federal transit assistance by about $2.1M, creating a new general-fund subsidy; options include pursuing grants, modest fare adjustments and managed advertising on buses and facilities.
Grayson told council that Amarillo was reclassified as a large urbanized area and consequently lost approximately $2.1 million in prior federal transit assistance, creating a new shortfall staff covered from the general fund this year. He said that fully shifting transit to cost recovery is unrealistic given the ridership profile and social-service role of transit.
Staff offered three paths to narrow the gap: pursue additional grants and regional partnerships; consider carefully calibrated fare adjustments with sensitivity to rider demographics; and explore managed advertising on buses and transit facilities as a revenue source, subject to policy controls. Councilmembers emphasized the program's social value and urged staff to prioritize grant-seeking and pilot advertising with conservative revenue expectations.
