On May 27, 2020, the KCATA Board approved the regional sub-allocation for CARES Act funding to support regional transit operations. The purpose of the CARES funding is to supplement lost revenues including sales tax, passenger fares and local support along with operating and capital expenses, including additional expenses specifically related to COVID-19, for transit agencies throughout the region. As part of this funding allocation, the City will receive $1.614 million of CARES Act funding for our transit services (i.e., intra-city fixed route, inter-city fixed route, and paratransit services). This is separate from the $6.9 million allocation of CARES funding the Jackson County Legislature approved for the City.
Approximately $671,000 of the $1.614 million CARES funds will be used to cover the expenses for the services provided by KCATA. The balance (approximately $946,000) of the CARES funds will be used for our intra-city fixed route service operated by First Transit. An additional $413,000 of Federal Transit Administration (FTA) 5307 funds will be utilized to pay for transit services operated by First Transit. In addition, the City allocated $125,000 of CDBG funds to assist in maintaining transit services for our low- and moderate-income passengers. The remaining $125,260 of transit expenses is to be covered by the general fund.
The sub-awardee agreement allows the City to utilize the CARES Act funds. As discussed during the annual budget process, this is a one-time funding source for City transit services this Fiscal Year. Development of a sustainable, long-term transit model and funding source(s) is needed for future budget years.