Gary transit will raise fares, may cut service if relief not granted

BY KEITH BENMAN, Times of Northwest Indiana
kbenman@nwitimes.com

Gary Public Transportation Corp. could be making deep cuts in service this summer if it does not get relief from the state's Distressed Unit Appeals Board.

The bus company will see its revenues cut about $1.2 million to $1.4 million if relief is not granted and is preparing for a "worst case scenario," General Manager Daryl Lampkins said.

"We want the public to know," Lampkins said. "We want them to know there are problems that will develop if our cash flow situation cannot be resolved."

GPTC has asked the appeals board to allow it to spread out the full impact of Indiana's property tax relief mandate, contained in House Enrolled Act 1001, over four years. If the board grants that request, GPTC still would lose about $400,000 to $500,000 in revenue this year, Lampkins said.

In that case, the bus company could maintain its present level of service but still would have to raise fares, Lampkins said. GPTC has hired a consultant to find the best way to do that.

Currently, full fare on a GPTC bus is $1.25, and transfers are 15 cents. A monthly pass is $45.

"We will have some kind of fare increase," Lampkins said.

To make matters worse, no banks bid on GPTC's tax anticipation warrants this year, Lampkins said. The bus company usually borrows a couple of million dollars at this time of year to tide it through until tax payments come due.

Lampkins said right now the bus company is able to keep operations at full strength because it carried over $600,000 to $700,000 in revenue from last year. GPTC has a total budget of about $7.8 million.

But the bus company will need relief from the appeals board to maintain the current level of service.

"It could get dire if things don't fall into place," Lampkins said.

The property tax caps mandated by HEA 1001 limit local property tax bills to 1.5 percent of assessed value for homeowners, 2.5 percent for landlords and 3.5 percent for businesses.

The City of Gary stands to lose a total of $36 million to the caps if it is not granted relief by the appeals board.

Service cuts GPTC may have to contemplate would include the end of weekend service, ending bus service at about 7 p.m. and running buses on some routes once every hour rather than every half hour, Lampkins said.