Michigan mass transit agencies are waiting to find out how much money they will get from the state in 2026.

Lawmakers have until October 1 to approve a budget and send it to Governor Gretchen Whitmer to sign.

Transit proposals are similar

The governor, the state House, and the state Senate have all approved $226 million for local bus operating revenue. The House budget proposal adds $60 million in new revenue for transit systems that serve more than 100,000 people. The Senate plan includes $15 million in new funding.

The Michigan Public Transit Association analyzed all three budget plans. It says bus systems would lose an average of 5 or 6 percent in state funding if the $226 million figure is approved.

SMART, Southeast Michigan’s regional bus service, gets about a quarter of its funding from the state. General Manager Tiffany Gunter says the governor’s proposal would cost SMART about $8.6 million.

“We obviously don’t know where those cuts would come from directly today,” Gunter says. “This would have a horrible effect on the region’s ability to move mobility forward.”

Cuts jeopardize improvements

Gunter, who became SMART’s GM in August, says state budget cuts threaten plans to improve customer service. That includes expanding the Flex program, which lets people in about a dozen communities schedule shuttle rides seven days a week.

“We wouldn’t be able to move forward with those improvements to the service and those enhancements, because we just wouldn’t have the funding to do so,” she says. “We’d be looking at areas where we could pull back service instead.”

While the House proposal is more generous than either Whitmer’s or the Senate’s, Gunter says the devil is in the details. To get a share of the extra $60 million, a transit system must get at least 10% of its revenue from rider fares. Gunter says SMART’s farebox recovery ratio is 4%.

“43% of our riders are either seniors or people with disabilities, and those individuals pay a half fare,” she says.

Most funding comes from regional tax

60% of SMART’s revenue comes from a regional transit millage, which enables the agency to offer fare discounts.

Gunter says her goal is to ensure that SMART buses are safe, convenient, and reliable.

“We’re not just moving people here,” she says. “We know that what we do every day gives people access to opportunity.”

SMART says it carries an average of almost 11 million riders per year.