The Numbers on the Table
A coalition of more than 30 transportation organizations is asking the Michigan Legislature to allocate $330 million for Local Bus Operating in the upcoming state budget. Governor Gretchen Whitmer and the state Senate have proposed $315 million. The House has offered $25 million less, at $290 million.
That gap of $25 million between the Senate and House proposals could force Saginaw Transit Authority Regional Services to cut 6% from its budget. STARS serves Saginaw and the surrounding region with dedicated routes to major employers including Hemlock Semiconductor.
Who Loses If the Cut Happens
Amy Bidwell, executive director of STARS, told WCMU that state funding represents the second largest source of revenue for the transit authority. She warned that the House level of funding would force deeper cuts to routes that serve the most riders.
"We'd have to go deeper and start cutting routes that we already know are serving a higher percentage of people. And that's when it really hurts the community."
Bidwell said ridership has increased as gas prices have risen. STARS transported more than 47,000 people to work on dedicated job routes last year.
"Those are not just workers that need to get to work, but those are employers that need their employees to be there. So the economy really depends on STARS being able to perform successfully, and we depend on Local Bus Operating."
Jaron Latimore, a Saginaw native who has used STARS since high school, rides the bus nearly every day for work, medical appointments, and shopping.
"I take the STARS bus every day. It's good drivers, good people, and it's all around a good system. And it's accessible. It's just a great thing for the city."
Latimore said cuts would disproportionately affect older residents and others who lack access to a car.
The Bigger Budget Fight
The transit funding debate is part of a larger budget crisis in Lansing. State officials confirmed that Michigan faces a projected budget gap of more than $1 billion. The shortfall stems from uncertainty in healthcare costs, rising gas prices, and international conflicts affecting the economy.
Megan Owens, executive director of Transportation Riders United, said the $330 million target for bus funding is achievable using money already available in the state budget.
"We know that there are increased dollars coming into what's called the Comprehensive Transportation Fund. The question is where the legislators want to allocate those dollars. We strongly believe the greatest need is this Local Bus Operating."
The Deadline
The Legislature must deliver a budget to Governor Whitmer by July 1. The state fiscal year begins on October 1, when the Michigan Constitution requires a balanced budget to be in place.
Republicans have said they will support spending cuts to close the gap but refuse to draw from the state's rainy day fund or raise new taxes.
Representative Ann Bollin (R-Brighton Township), who chairs the House Appropriations Committee, said the focus must remain on fiscal responsibility.
"As budget negotiations continue, we must stay the course with a responsible approach that focuses on long-term priorities instead of growing government for the sake of growing government."
State Treasurer Rachel Eubanks acknowledged the economic pressures facing the state.
"We can't ignore the broader environment, whether it's federal uncertainty, geopolitical tensions, healthcare prices, rising gas prices. Those continue to put pressure on budgets across the country, and Michigan is no exception to that."
Saginaw riders and employers are watching closely. The outcome of this budget fight will determine whether STARS keeps its current service levels or cuts the routes that connect workers to jobs across the region.