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Public Transportation in Indiana: A Call for Increased and Sustainable Investment

By February 12, 2025No Comments

 

Last week, John Metzinger, General Manager/CEO of Citilink and President of the Public Transportation Council of Indiana, testified in front of the Ways and Means Committee of the Indiana State Legislature about the urgent need for growth in Indiana’s Public Mass Transportation Fund (PMTF) after over 12 years of slow and now stagnant funding.

Public transportation is a critical part of Indiana’s transportation infrastructure. With costs rising and federal COVID relief dollars expiring, we must prioritize sustainable funding for transit systems across Indiana through the state.

To see John speak about the importance of increasing and sustaining investment into public transit on the state level, please click the link below. Click the dropdown menu to search for a meeting and select the meeting named “Thursday, Feb. 6- Upon Adjournment”. Once the meeting is selected, the video will open below it. You will need to fast forward to the 3:34:12 mark of the video to hear John’s remarks.

Please continue reading to learn more about how we got here, where we are, and how you can help.

 

John Metzinger Testimonial at State Ways and Means Committee

 

Why Public Transit Matters in Indiana

Public transportation is not just about getting from point A to point B. It connects people to jobs, education, and healthcare, strengthening our communities and local economies. In Indiana, over 90 companies contribute to the public transit industry on a state, national, and global level. Yet, despite its importance to our communities, state funding has remained flat for several years.

In the last state legislature budget session, PMTF was added as a line item in INDOT’s budget, where it remains today in the state budget. Governor Braun’s current budget plan aims to maintain the PMTF at its existing level. While we are grateful that funding to the PMTF has not been reduced, the fact that funding has not increased is progressively becoming an issue to all transit agencies throughout the state of Indiana.

Flat funding means that transit agencies are struggling to keep up with inflation and rising operational costs. Over the last 12 years, transportation infrastructure costs have skyrocketed, but state investment in transit has not kept pace. In Fort Wayne alone, our costs have increased by 60% while revenue has only grown by 9%.

 

The Fiscal Cliff Facing Indiana’s Transit Agencies

Nationwide, about half of transit agencies are facing a fiscal cliff due to post-COVID budget constraints. Fort Wayne, unfortunately, was the first in Indiana to experience this crisis. In 2025, we faced a $2.5 million budget deficit out of our $19 million budget. Without additional support, this would have resulted in a 14% service cut—eliminating 300,000 trips annually and reducing economic returns to Fort Wayne by $12 million. This would have been 300,000 less rides to work, school, healthcare, food sources, social activities, and needed services to people who rely on the bus.

Fortunately, the city of Fort Wayne stepped in to provide a safety net, but this is not a sustainable solution. Additional support from the state of Indiana is needed to ensure that this budget deficit, which we now face again for our 2026 budget, is resolved and people are able to get access to everything they need to live good lives.

Lafayette and South Bend will face similar challenges in 2026, and we must act now to prevent service reductions across the state that will affect our communities.

 

The Rising Costs of Operating Public Transit

The cost of running a public transit system has increased significantly. From bus replacements to fuel, labor, and casualty insurance, every aspect of transit operations has become more expensive with inflation.

In response, Fort Wayne is implementing a 20% fare increase, beginning on April 1. However, raising fares is not a long-term solution. Public transit fares are highly elastic—raising them too much can actually reduce revenue by discouraging ridership, as people in our community are affected by fare increases. We found that 20% was the optimal increase to balance revenue growth while maintaining ridership levels. However, fare hikes alone cannot fill the funding gap left by stagnant state investment.

 

The Need for Increased State Investment

Since 2016, Indiana has received $1.1 billion in federal transit funding, with Fort Wayne receiving approximately $6 million annually in federal funds and $2.1 million from the state PMTF fund. The federal government is investing in public transit at record levels, yet Indiana is not keeping up.

Representatives on the Ways and Means Committee have expressed strong support for increased transit funding, emphasizing the need for all forms of transportation to be accessible to the public. We must work together to ensure that public transit is recognized as a critical part of our state’s infrastructure.

 

A Call to Action

As we approach the reauthorization of the federal Bipartisan Infrastructure Law in 2026, we must advocate for continued and increased investment in public transit here in Indiana.

The state needs to recognize that roads, bridges, and highways are only part of the transportation equation—public transit is the missing piece that connects people to essential services and economic opportunities.

We urge the state legislature to address the growing costs of transit operations and provide the necessary funding to sustain and expand services. Indiana’s public transportation systems cannot continue to operate on outdated funding levels while costs skyrocket. Investing in public transit is an investment in Indiana’s future.

Now is the time to act. Let’s work together to ensure that Indiana’s public transit systems remain viable, efficient, and accessible for all.

If you’d like to advocate for increased funding here in Indiana, please click below to sign up for our coalition:

 

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