Story by Kevin Woodard
Normal Town Staff is asking the town council to approve spending $200,000 per year of federal American Rescue Plan Act (ARPA) funds for Connect Transit. The funds are slated to go towards the transit agency’s One Rate for All rate structure. The intent is to keep the rate charged to Connect Mobility users matching the rate charged to fixed route customers. The action would commit to a plan to make payments from the 2022-23 through 2025-26 budgets.
ARPA was a plan put together by President Joe Biden to “rescue” our country from the Covid-19 pandemic. According to the ARPA website the main intent was to “change the course of the pandemic and deliver immediate relief for American workers.” As part of that plan funding was also intended to, “help hard-hit public transit agencies avoid layoffs and service reductions, which disproportionately harm workers who are more likely to be dependent on public transportation.”
Previously Connect Transit received $9.2 million from the FY 2020 Cares Act and $6.9 million from ARPA “to help to prevent, prepare for and respond to the COVID-19 pandemic,” according to Connect’s 2021-2022 budget. These funds were directed to the agency by the federal government.
The Coronavirus Aid, Relief and Economic Security (CARES) Act was an economic stimulus bill prepared by President Trump. According to the Cares Act webpage it “implemented a variety of programs to address issues related to the onset of the Covid-19 epidemic.”
Connect Transit started its One Rate for All plan in July 2020. All Connect riders now pay $1.25 per ride. Before that Connect Mobility riders paid up to $4.00 per ride.
The One Rate for All plan was a recommendation made by the Connect to the Future (CttF) working group in March 2020. This was done to, “position the community’s public transit for future success.”
Normal received $10.9 million in ARPA funding. As of December staff, with council input, had decided how it wanted to spend $9.3 million and was waiting on further council input regarding the remaining $1.6 million. The $9.3 million included the subject $200,000 recommendation for Connect Transit.
Funding for this action was included in the 2022-23 budget approved by the council in March.
One might question the wisdom of using one time funds, such as ARPA funds, for annual operating expenses. Actions such as this can lead to operating budget shortfalls in the future. Typically this results in entities asking for more taxes after the temporary funding expires.
Therefore, generally, it is wiser to use one time funds for capital expenditures. This allows an entity to catch up to some degree on projects that are needed but haven’t been able to be funded. And it doesn’t create a bump in a future operations budget.
For example as of December, Normal was considering but had not committed to using ARPA funding for projects like; sewer monitoring along West Hovey Avenue and a sewer expansion and capacity study in north Normal. If Normal has determined to use ARPA funding for these projects at this time, fantastic! If not they might be better uses for this $200,000. Even if these projects have been included in Normal’s plans for ARPA funding it still might be better to fund capital projects like these in lieu of sending the funding to Connect Transit.
As has previously been reported by Cities 92.9 Connect Transit is now in the process of determining its 2022-23 budget. Connect is asking for increases in its budget due to increased operating cost. The argument they make is sound. However, they are also planning to expand services.
One such project is a ride share program that would be provided in conjunction with Enterprise. This project is aimed at people who live outside of town and it would deliver them to their workplace. Let’s say six people live in Morton and work at Rivian. Enterprise would find the riders and provide the driver with a seven passenger van. Enterprise would handle all the money handling.
The public-private partnership is intriguing. And it’s a futuristic look at how transit services might provide more service for less cost.
So what’s the problem? The problem is the transit system has to pay for the buses. And what’s the cost? The cost might possibly be $180,000 a year.
When we are talking budgets all discussions involve priorities. Most items provide benefits to someone. The question is what do the residents of Normal want the priorities to be?
Normal residents and other concerned persons are encouraged to attend tonight’s town council meeting at 7:00 pm at City Hall to express their support of or opposition to this item and/or any other items on tonight’s agenda.