TX: DART will refund some cities millions. What will it cost riders?

Dallas Area Rapid Transit board members agreed on Tuesday to refund some cities millions of dollars in tax revenue in the hopes of halting legislation in Austin, but the move will cost riders.

The board committed Wednesday to creating a general mobility fund that will allocate 5% of DART’s annual sales tax revenue to funding the initiative for three years. Under the fund, seven cities that paid a surplus into DART in 2023 would be eligible to receive a collective $42 million back in the first year for use on non-DART transportation projects in their cities.

It’s an attempt to mollify member cities that have pushed for twin bills to be filed in the Texas legislature in February that would compel the agency to create a permanent general mobility program funded by 25% of DART’s annual sales tax revenue. DART has said that would cripple the agency, leading to widespread service cuts throughout the region, slowed frequencies and layoffs.

But the short-term mobility program approved Tuesday will lead to significant cuts as well, staff told the board last week.

The 2026 allocation amount would be equal to 5% of the agency’s total 2024 sales tax collections, or just over $42 million. That’s on top of at least $18 million the agency expects to spend on city service requests. Those dollars, along with more than $9 million for additional Silver Line operations and “unknowns,” together create a more than $78 million projected budget shortfall for 2026.

DART staff hope to make up the gap by eliminating low-performing routes, reducing service frequency and cutting some commuter rail and paratransit services.

Those cuts would include discontinuing six local bus routes, three express bus routes, two GoLink zones and three GoLink zone-to-zone pilots. While the changes would impact a little over 1 million riders, cuts to service frequency on buses and rail — including possibly reducing service days and hours of operation for commuter rail — would impact almost all riders.

The changes would also lead to a decline in revenue from riders, staff told the board.

“When you start doing stuff like this … every year you have to cut more because not only will our fare revenue go down, our federal formula funding will go down,” DART chief financial officer Jamie Adelman said.

The agency could save up to an additional $10 million on paratransit service for disabled riders. The Americans with Disabilities Act only requires transit agencies to provide the service within three-quarters of a mile of fixed-route services, so shrinking the number of routes in service would allow for downstream cuts impacting about 17% of paratransit trips.

As part of Tuesday’s resolution, the board agreed to cap tax revenue growth at an average of 3.8% over its 20-year financial plan. Beginning in fiscal year 2029, cities with sales tax collections greater than the allocation of costs in their cities will receive an equity adjustment. If the difference is greater than 50%, cities will receive a 25% disbursement, while those with a 25% to 49.99% disparity will get 15% back and cities with a 1–24.9% difference will get 5% back.

Staff hope external funds such as from the Regional Transportation Council could also help make up the expected budget deficit.

A study by accounting firm EY last year showed seven cities — Addison, Carrollton, Farmer’s Branch, Highland Park, Richardson, Plano and University Park — contributed more to DART than they received in service cost allocations. Those cities would be eligible to receive an amount of the 5% proportional to the difference under DART’s general mobility program.

Representatives of several cities voted down Tuesday’s resolution to institute the program.

“I think we need a structural fix that has the permanence of state legislation to it,” Plano representative Anthony Ricciardelli said.

The vote came just before a resolution Wednesday by the Dallas City Council formally supporting maintaining DART funding.

“This is the time, more than ever, to show our unity in support of DART as it’s under assault,” council member Jaynie Schultz said.

DART plans to hold public meetings in June and early July and a public hearing July 8 before service changes would move to the board for approval in August. If approved, the cuts would take effect January 19, 2026.

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