Springfield, IL (CAPITOL CITY NOW) – Public transportation agencies across Illinois are sounding the alarm over a potential funding shortfall, and the Sangamon Mass Transit District is among many agencies urging lawmakers to take action.
“We’re approaching a fiscal cliff,” said Steve Schoeffel, managing director of SMTD. “If we start not being able to get necessary funds from the state, we’re going to be in a place where we’ll have to look at cutting services.”
Schoeffel was at the Illinois State Capitol on Thursday to help communicate the urgency of the funding shortfall to lawmakers and highlight the importance of downstate transit to local communities.
Schoeffel said around 63 to 65% of SMTD’s budget comes from the state through the downstate operating funds. The federal government provides about 21%, and only 6% comes from local taxes. Rider fares make up 5% of SMTD’s revenue.
Like many businesses and organizations in today’s economic climate, public transit agencies like SMTD are facing rising costs.
According to the Illinois Public Transportation Association, which represents public transit agencies in the state, the Downstate Operating Assistance Program is funded by a portion of state sales tax that is deposited directly into a fund that reimburses downstate transit agencies for 65% of eligible operating expenses up to each agency’s state appropriation. That’s provided each agency, such as SMTD, funds 35% of eligible operating expenses with a matching local share.
IPTA reports $453.4 million was appropriated for the Downstate Public Transportation Fund in FY 2024, and sales tax collection for the period equaled $299.7 million.
IPTA is advocating a stabilization of the DPTF by adjusting the formula and increasing the percentage of state sales tax collected while decreasing the required local match to 25% for urban agencies and 20% for rural agencies.
“The 35% that it takes to match that state funding from federal and local sources is a challenge,” Schoeffel said. “Many of us have tax bases that aren’t growing, and it’s just a difficult time.”
“Our focus is to show the need,” Schoeffel said. “We’re not necessarily the ones proposing how to raise the money — that’s up to the legislature — but we want to make clear that the need is real.”
With a $21 million budget, about $15 million goes toward wages and benefits. Schoeffel said if cuts become necessary, staffing would likely be affected. “We’re in a fairly decent spot right now, but we can only maintain that if we continue to get the funding level we’ve seen,” he said.
Schoeffel also warned that a funding shortfall could have a ripple effect. If operational funds from the state decrease, SMTD may need to dip into infrastructure funds, which are meant for capital improvements like maintaining facilities or replacing vehicles.
“It’s all a big domino effect, and it starts with the 65% reimbursement we get from the state — how important that is to us, not only to maintain, but also to increase it.”
When asked about the security of the federal funds under the new administration, Schoeffel said, “Right now, we’re just kind of in a wait-and-see mode.”
Schoeffel stressed that the agency is doing what it can with the resources it has. He encouraged residents to take action by contacting their state legislators.
“Let them know that it’s important to you that transit be fully funded,” he said. “For a lot of people, it’s critical — they rely on it to get to work, medical appointments, and the grocery store. It’s a lifeline.”
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