ND: Transit directors across North Dakota ask Legislature to increase funding to public transit

A proposal being considered by the North Dakota Legislature would increase what the state gives to the four biggest metropolitan areas for public transit services, which transit directors across the state have called a necessity as costs climb.

In its current form Senate Bill 2254 would provide $5 million in grant opportunities for the cities of Grand Forks, Minot, Fargo and Bismarck for their public transit services over the course of the next biennium. The bill would also require the state to conduct a study to investigate the best ways for North Dakota to fund public transit services. The original proposal had $15 million in funding, which legislators amended to $5 million.

"With the infusion of (pandemic) funds no longer an option, combined with their population designation change, they are experiencing the perfect storm that seriously jeopardizes their ability to meet the demands of their growing communities," Sen. Josh Boschee, D- Fargo, told the Senate Transportation Committee. Boschee is one of the authors of the bill.

In Grand Forks, the city has a $3 million budget for Cities Area Transit. The $3 million is split between local and federal cost share with the city having to fund around $1.5 million. The funding the city gives is a mix of property tax levy and fare revenue. Grand Forks Transit Director Dale Bergman said that only $290,000, less than the value of a single Grand Forks property tax mill, comes from the state.

"(The costs of) our services in the last five years have increased dramatically, over 40%," Bergman told senators. "The cost of a 35-foot large bus that we are currently in the process of looking at purchasing is not $700,000, but that does not cover the cost of the cameras that we're required to have, the (computer-aided dispatch) stuff to track where our vehicles are and for driver safety items."

Cities Area Transit is considering raising fares for the first time in a decade, by 33%.

Bergman has said increased state funding would help not only for savings for riders but also by lessening the burden on the city's property tax levy. The city currently levies around five mills, a little under $1.5 million at the current mill value.

In other areas of the state, changes in population have radically changed the funding formulas that transit services had relied on. For example, Minot, which after the last census was given urban metropolitan area designation, has seen its funding cut because of its bigger size.

"The current landscape of public transit funding is dire," Minot Transit Superintendent Brian Horinka said. "We are grappling with rising operating costs expenses, fuel and parts, and the urgent need to offer competitive wages to attract and retain staff is widening the chasm between what's needed and what's available. "

Fargo, too, has seen its funding cut as it also grows. According to Fargo Transit Director Julie Bommelman, Fargo used to be the biggest player in the small urban area funding pool, but now it's among the smallest in the large urban area funding pool.

"It meant a 17% cut in our federal funding," Bommelman said. "What we're asking for is funding that is for the fixed route service communities and will assist us in getting the service maintained, but also increased."

Potentially, cities in the state could be leaving federal funding on the table because they can't meet the required match. That currently doesn't happen, but it could if operational costs continue down the path they're on, according to the transit directors. During the hearing, senators balked at the cost being proposed.

"When I look at this bill and I look at the price tag on the bill, it kind of makes you gulp a little bit," Sen. Paulson, R- Minot, said. "I think a lot of people would look at this price tag and kind of feel the way I do."

Bommelman responded that the $15 million original amount is still a need for the four cities to provide a necessary service for people to get to their jobs, their homes and doctors appointments.

"The want would be a different figure that I can certainly say would very likely be higher because that would allow us to expand the existing service that we have and meet more of the needs that are out there in the community," Bommelman said.

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