Gary Public Transportation Corp. asks $4.1 million from NWI Regional Bus Authority

Gary Public Transportation Corp. officials are asking the Northwest Indiana Regional Bus Authority for $4.1 million to continue running three expanded regional routes to East Chicago, Hammond, Merrillville, Hobart and Crown Point.

The funding would keep the buses running through 2011 and also would help rehabilitate the Adam Benjamin Metro Center in downtown Gary.

RBA program manager Ken Dallmeyer said the RBA had received the application and it would first be considered by its service development committee on March 3.

The RBA wants to be the overall funder of regional bus transit, but because it has no permanent funding source it still relies on the Northwest Indiana Regional Bus Authority for sizable grants to get projects started.

"We will take a careful look at the application," Dallmeyer said. "But the question is where does the money come from?"

Bill Hanna, Northwest Indiana Regional Development Authority executive director, on Tuesday said he knew about the application but the RDA had directed the GPTC to submit it to the Northwest Indiana Regional Bus Authority. Nevertheless, Hanna said the RDA would be involved in discussions about the application and likely would be looked to as a funding source.

"What we are promoting is an integrated transportation system for Northwest Indiana," Hanna said. "That includes both regional and local routes."

The RBA is just getting its feet wet with a takeover of Hammond Transit, which is being funded in part by a two-year grant of $1.8 million in casino money from Hammond. The RDA in November granted the RBA $500,000 to get the takeover started.

The RBA also let the RDA know it plans to ask for $5.3 million more to operate and expand the system over the next two years both in Hammond and suburban communities.

In July 2008, the RDA granted GPTC $3 million to expand service on its regional routes for the next two years. The service was expanded and began operating with the RDA subsidy in September of that year.

The three routes receiving RDA funding, which flows through the RBA, are the South Broadway Express, the U.S. 30 Circulator and the Tri-City Connection.

Ridership on the regional routes initially surged with the addition of more buses and better connections with other GPTC buses. Ridership sagged on some routes for a time as the recession hit. But on its application, the bus agency states its partnership with the RDA increased ridership in both 2008 and 2009.

The money GPTC is requesting also would help fill the funding gap left by lower property tax receipts, according to its application. GPTC estimates it will have a budget shortfall of $3 million by 2011 because of state-mandated property tax caps and lower tax collections.

The application states $2.4 million of the requested $4.1 million would go to support the regional routes through the end of 2011. The other $1.7 million would go to other projects, including rehabilitating the Adam Benjamin Metro Center.

GPTC estimates the $1.7 million would bring in $7.6 million in matching federal grants.

The approval process for any money GPTC eventually receives from the RBA or RDA could take months. The RBA's service development committee first must approve any request for submission to the RBA board. The full RDA board must approve any grant request for referral to an RDA committee, which then usually engenders lengthy discussions and negotiations with the applicant.