LOUISVILLE, Ky. (WDRB) — TARC leaders told Louisville Metro Council Monday the public transit agency is still facing growing financial pressure, despite nearly $28 million in recent savings from route cuts and other cost-saving measures.
The transit agency met with Metro Council Monday to discuss the future of the agency's budget.
For riders like Sara Frasier, the system remains dependable.
"It's been great. It gets me where I need to go," said Frasier. "They've decreased a lot of the lines, so that's not great."
Over the past two years, TARC has eliminated or reduced underused routes as part of an effort to cut costs. The changes have helped the agency save nearly $28 million.
"At almost $28 million is what we've saved to push that financial cliff out," TARC Executive Director Ozzy Gibson said. "It allows us to put money into the Mass Transit Trust Fund. So as we lost all the COVID money, we can now dip into that."
TARC officials said the agency has struggled to balance its budget for decades, with revenues last roughly even in the mid-to-late 1990s. Federal COVID-19 relief temporarily filled the gap, but that funding has since run out.
To keep service running, TARC has deferred maintenance and tapped reserve funds. The agency currently has about $40 million in deferred maintenance needs.
"By building up that Mass Transit Trust Fund the way we have, we're now able to limit what we have to take out of that just to operate," Gibson said. "We're actually going to chip away at our $40 million deferred maintenance."
TARC’s annual budget is about $110 million. Of that, $20 million to $22 million supports TARC3, the agency’s ADA paratransit service.
Riders pay $9 per trip for TARC3 service, but the agency said the actual cost is about $94 per trip — and could rise to as much as $140 for a round trip in the future.
"We do 30,000 trips a month," Gibson said. "We have over 8,000 people signed up to ride, and about 3,500 people use it frequently."
Despite recent savings, TARC still faces significant budget challenges. The agency projects a $16 million shortfall this year and a $10 million gap next year. Officials expect route changes scheduled to take effect in August to generate additional savings.
Looking ahead, TARC forecasts a budget deficit of nearly $23.7 million by 2031.
For now, riders continue to depend on the service every day, even as the agency works to secure its financial future.
TARC's funding concerns come as Louisville Metro Council continues reviewing the city's proposed $1.1 billion budget for the upcoming fiscal year.
Council members are expected to vote on the final budget June 25.
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