Berrien County warned tens of thousands of transit rides could vanish without new regional authority

Community Development Director Dan Fette told the Berrien County Committee of the Whole on Feb. 19 that the county faces a potential collapse of transit service unless it forms a unified Transit Authority under Michigan Act 196. He said the Michigan Department of Transportation (MDOT) notified the county that beginning Oct. 1, 2026, Benton Harbor Dial‑a‑Ride (TCATA) would no longer be eligible for state and federal transit funding unless the local systems conform to MDOT’s requirement.

Fette said the change threatens about 150,000 annual rides currently served in the county and that loss of urban operating assistance would eliminate roughly 63% of the county’s total current annual rides. He told the board that combined operating deficits for TCATA and Berrien Bus exceed $250,000 per year and that Berrien Bus is drawing down reserves at an unsustainable rate; without intervention, rural operations could cease. MDOT’s “Service Initiative fund” was described in the presentation as offering the new local share at 100% in year 1, 80% in year 2 and 60% in year 3.

Fette outlined a proposed hybrid regional model that would preserve and restructure service around six higher‑demand fixed routes: Benton Harbor–Niles; Niles–South Bend; St. Joseph–Watervliet; Benton Harbor–New Buffalo; New Buffalo–Michigan City; and New Buffalo–Niles. Board members discussed the presence of existing local transportation millages in some jurisdictions, insurance coverage questions, and the governance and development structure that a Transit Authority would require under Michigan Act 196.

The minutes record discussion and no formal vote on creating an authority at this meeting. The update framed the issue as a short‑term funding and eligibility deadline (Oct. 1, 2026) that will require board decisions about structure, local funding, and coordination with MDOT in coming weeks.