Mat-Su Borough faces a funding shift for its bus system after losing a federal grant, potentially increasing local property taxes. The 2020 census classified the borough as an urbanized area, changing its eligibility for full federal transportation funding.
As a result, the borough must now match 50% of transit costs through local funding, significantly altering financial planning. Assemblyman Tim Hale explained that the new designation requires a municipal planning organization to distribute federal and state transportation funds.
Valley Transit, the non-profit managing Mat-Su´s transportation, will no longer receive federal funds and must compete for grants. The borough initially delayed the funding transition due to financial support from the Mat-Su Health Foundation.
“We’re looking at grants and other match monies to kind of help us defray the cost of continuing the transit services,” Hale said. Mayor Edna DeVries emphasized that the borough would collect public input before finalizing a plan for bus service funding. “We prefer, as I think most governments do, to really have an open process,” explained DeVries.
Officials outlined four funding options, the most expensive of which required $3 million and raised property taxes by $10.70 per $100,000. “That’s why we will not negotiate with either the present provider or anybody else that comes to us. It will be an open bidding process,” stated DeVries.
Public hearings will occur in Wasilla, Palmer and Willow before a final decision. Mat-Su Borough bus funding changes highlight the challenges of shifting transit costs to local taxpayers while maintaining essential services.
This news article was originally published by Alaska´s News Source.
