LOUISVILLE, Ky. — Editor's note: The above video aired on Jan. 29, 2024.
Transit Authority of River City (TARC) officials have passed their newest fiscal year budget while simultaneously planning on cutting service.
They said this budget addresses a "looming fiscal cliff," saying if they don't make any changes, the public transportation service wouldn't be able to meet their expected expenses by mid-2026.
The service reductions would go into effect on Jan. 5, 2025. By making the changes, officials said the fiscal cliff would be pushed off for another two years.
“This is not a step that the board takes lightly - but it is necessary,” TARC Board Chairman Ted Smith said. “TARC, like many transit agencies across our country, faces significant financial challenges. By taking this step now, we can buy the necessary time to find the resources we need to support robust bus service for the tens of thousands of us who rely on public transit in Louisville.”
Officials claim the cliff is a result of several factors:
- The Jefferson County occupational tax hasn't changed its rate in 50 years
- The service is getting minimal state support compared to other agencies
- Transit services nationwide are facing challenging financial climates
- COVID-era federal funding is expiring soon
The service reductions will be called "Saturday Plus;" during the week, many of TARC's bus routes will look like Saturday-level service, meaning there won't be as many buses running. No routes will be cut.
“’Saturday Plus’ is the least intrusive way for TARC to preserve essential service while still taking important action to address the looming fiscal cliff,” Interim Executive Director Ozzy Gibson said.
TARC's busiest routes -- #4 4th Street, #10 Dixie Rapid, #23 Broadway, and #28 Preston Highway -- and TARC3 won't be impacted officials said.
Other ways TARC officials hope to address the projected operational budget gap include a new initiative called TARC 2025 that will launch in the summer, and identify new sources of revenue at the local, state and federal levels.
Metro Council will consider the proposed budget as part of Louisville Metro's fiscal year 2025 budget.
Make it easy to keep up-to-date with more stories like this. Download the WHAS11 News app now. For Apple or Android users.
Have a news tip? Email assign@whas11.com, visit our Facebook page or Twitter feed.