Fare-free Chapel Hill Transit buses re-evaluated

Chapel Hill has won awards for its fare-free transit system — a system that might be in jeopardy after changes in federal funding.

Addressing the future of funding will be one of a few challenges Chapel Hill Transit will address as part of the long-term strategic budget plan the Public Transit Committee will begin developing this month.

Carrboro Alderman Damon Seils said the committee’s goal is to keep Chapel Hill Transit fare-free, but that the fare-free system will have to be re-evaluated.

“This effort, to my knowledge, is the first time Chapel Hill Transit has engaged in a long-term financial sustainability planning effort,” he said. “The goal is to look beyond the normal annual budget cycle because the transit system involves a lot of capital investment you have to plan for.”

Officials review the budgets for the towns of Chapel Hill and Carrboro each year, which include funding for Chapel Hill Transit. UNC also provides money for the transit system. But for the first time in years, a consulting firm will help the Public Transit Committee craft a budget that looks at the organization’s goals during the next five to 10 years.

The group will hold two public forums in two weeks for residents to give input on how Chapel Hill Transit could be improved.

To sort out future sources of finances, the Public Transit Committee hired Nelson/Nygaard Consulting Associates to examine the transit budget. In the firm’s report to the towns, it outlined the timeline for the group’s work.

“They’re in the learning stage — learning how the transit system operates and what the challenges are,” Seils said. “We’re not at the stage yet where we have details about what the long-term plan will look like.”

Seils said another priority will be receiving public input on how to use new funds from the Orange County Transit Plan, which uses a sales tax to raise money for transit.

“Having input from the public about how they would like to see the system grow will help us make decisions at the policy level,” he said.

Seils said a major concern is that most Chapel Hill Transit buses are 10 to 12 years old and should be replaced soon.

A change in federal budgeting processes two years ago made acquiring funds for transit projects more difficult.

“It used to be that many public services utilized something called earmarks, or publicly directed spending,” said Brian Litchfield, director of Chapel Hill Transit.

Now, because earmarks are no longer a reliable source of funding, Litchfield said Chapel Hill Transit can not rely as heavily on state or federal funding. He said the towns will have to find local sources of funding, like taxes.

“It’s a big investment,” Seils said. “Buses are costly, and we need quite a few of them.”

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