Chattanooga’s Transportation Authority Proposes Budget Increase for 2026

Public buses operating in Chattanooga city streets

News Summary

The Chattanooga Area Regional Transportation Authority (CARTA) is eyeing a $32.7 million operating budget for 2026, seeking an additional $2 million in local funding. The increase aims to improve services and launch new programs amidst ongoing funding challenges. CARTA’s efforts include working with local governments to secure support and enhance community transportation services, despite a recent drop in ridership.

Chattanooga’s Transportation Authority Eyes Bigger Budget for 2026

In the bustling city of Chattanooga, the Chattanooga Area Regional Transportation Authority (CARTA) is gearing up for an exciting, yet challenging fiscal year 2026. With a proposed total operating budget of $32.7 million, CARTA is aiming for an increase of $2 million in local funding compared to the previous year. This comes as the authority seeks a combined $8.4 million from local governments, indicating a keen need for financial support to enhance public transportation services.

Budget Breakdown and Goals

The proposed budget reflects a 10% increase over the current fiscal year, and while it’s still in the proposal stage, the final budget will be set before the new fiscal year kicks off on July 1, 2025. The increased funding aims to expand vital services such as CARTA Go and the paratransit service Care-A-Van, as well as launch pilot programs that focus on transportation for educational initiatives.

Funding Challenges

Historically, funding for CARTA has faced a plethora of challenges. The City of Chattanooga has consistently provided a flat $5.8 million. However, last year, when CARTA asked for $8.3 million, that amount just didn’t cut it. The upcoming budget request to the city is for $7.6 million, which better aligns with the agency’s current funding needs. Meanwhile, Hamilton County has reduced its annual funding to $0 after offering around $100,000 for several years.

The Road Ahead

Despite these setbacks, CARTA seems poised for a turnaround. The agency is working to secure approximately $583,000 from Hamilton County, along with $130,000 from East Ridge and $20,000 from Red Bank. This effort is not just about numbers; it’s about building better relationships with local officials, which is crucial for future funding stability.

Expanding Services and Community Impact

The need for increased local funding is underscored by CARTA’s identification of $43 million in unfunded capital projects, demonstrating the ongoing financial challenges the agency faces. Notably, local funding has failed to keep pace with inflation, putting additional pressure on CARTA’s operations. However, the agency has received federal support for projects aimed at improving public transit, such as $630,000 earmarked for transit-oriented development along Brainerd Road/Lee Highway. This initiative seeks to promote affordable housing and ensure equitable transit access for all residents.

Improving Operations and Community Partnerships

CARTA is also exploring ways to boost operational efficiency. In a fantastic move aimed at community engagement, the agency is collaborating with the Chattanooga Public Library to offer free rides for students in Hamilton County. This initiative promises to not only ease transportation woes for students but also foster a spirit of community involvement.

Looking Ahead

However, it’s important to note that in January 2025, ridership numbers took a significant hit, dropping to over 70,000 users—a decrease of 20,000 compared to late 2024. With a fresh leadership team and an emphasis on improved communication between management and employees, CARTA is beginning to show some positive signs of revitalization.

As talks continue to secure additional capital funding, the community waits with bated breath. The focus on obtaining local funding not only highlights the pressing needs of Chattanooga’s public transportation system but also emphasizes the importance of collaboration and support from all sectors of the community.