Dallas Area Rapid Transit Board Members Agree to Refund Millions to Cities
Dallas Area Rapid Transit board members agreed on Tuesday to refund some cities millions of dollars in tax revenue in the hopes of halting legislation in Austin, but the move will cost riders. The board committed Wednesday to creating a general mobility fund that will allocate 5% of DART’s annual sales tax revenue to funding the initiative for three years.
Under the fund, seven cities that paid a surplus into DART in 2023 would be eligible to receive a collective $42 million back in the first year for use on non-DART transportation projects in their cities. This is an attempt to mollify member cities that have pushed for twin bills to be filed in the Texas legislature in February that would compel the agency to create a permanent general mobility program funded by 25% of DART’s annual sales tax revenue.
Background and Context
DART has said that the proposed legislation would cripple the agency, leading to widespread service cuts throughout the region, slowed frequencies, and layoffs. The short-term mobility program approved Tuesday will lead to significant cuts as well, staff told the board last week. The 2026 allocation amount would be equal to 5% of the agency’s total 2024 sales tax collections, or just over $42 million.
That’s on top of at least $18 million the agency expects to spend on city service requests. Those dollars, along with more than $9 million for additional Silver Line operations and “unknowns,” together create a more than $78 million projected budget shortfall for 2026. DART staff hope to make up the gap by eliminating low-performing routes, reducing service frequency, and cutting some commuter rail and paratransit services.
Service Cuts and Impact on Riders
Those cuts would include discontinuing six local bus routes, three express bus routes, two GoLink zones, and three GoLink zone-to-zone pilots. While the changes would impact a little over 1 million riders, cuts to service frequency on buses and rail — including possibly reducing service days and hours of operation for commuter rail — would impact almost all riders. The changes would also lead to a decline in revenue from riders, staff told the board.
“When you start doing stuff like this … every year you have to cut more because not only will our fare revenue go down, our federal formula funding will go down,” DART chief financial officer Jamie Adelman said. The agency could save up to an additional $10 million on paratransit service for disabled riders.
Paratransit Services and Americans with Disabilities Act
The Americans with Disabilities Act only requires transit agencies to provide the service within three-quarters of a mile of fixed-route services, so shrinking the number of routes in service would allow for downstream cuts impacting about 17% of paratransit trips. A study by accounting firm EY last year showed seven cities — Addison, Carrollton, Farmer’s Branch, Highland Park, Richardson, Plano, and University Park — contributed more to DART than they received in service cost allocations.
Those cities would be eligible to receive an amount of the 5% proportional to the difference under DART’s general mobility program. Representatives of several cities voted down Tuesday’s resolution to institute the program. “I think we need a structural fix that has the permanence of state legislation to it,” Plano representative Anthony Ricciardelli said.
City Council Resolution and Public Meetings
The vote came just before a resolution Wednesday by the Dallas City Council formally supporting maintaining DART funding. “This is the time, more than ever, to show our unity in support of DART as it’s under assault,” council member Jaynie Schultz said. DART plans to hold public meetings in June and early July and a public hearing July 8 before service changes would move to the board for approval in August.
If approved, the cuts would take effect January 19, 2026. Staff hope external funds such as from the Regional Transportation Council could also help make up the expected budget deficit. As part of Tuesday’s resolution, the board agreed to cap tax revenue growth at an average of 3.8% over its 20-year financial plan.
Ex-DART contractor says the agency was ‘motivated solely by financial constraints’ during its RFP process.
Dallas riders say they waited hours on the phone and frequently had rides canceled.
Conclusion
The decision by the Dallas Area Rapid Transit board members to refund millions of dollars to cities is a complex issue with significant implications for riders and the future of public transportation in the region. While the move aims to halt legislation in Austin, it will ultimately lead to service cuts and impact riders. As the situation continues to unfold, it is essential to consider the perspectives of all stakeholders involved and work towards finding a solution that balances the needs of cities, riders, and the agency itself.
Frequently Asked Questions
Q: What is the general mobility fund, and how will it work?
A: The general mobility fund will allocate 5% of DART’s annual sales tax revenue to funding the initiative for three years. Seven cities that paid a surplus into DART in 2023 would be eligible to receive a collective $42 million back in the first year for use on non-DART transportation projects in their cities.
Q: How will the service cuts impact riders?
A: The service cuts would include discontinuing six local bus routes, three express bus routes, two GoLink zones, and three GoLink zone-to-zone pilots. Cuts to service frequency on buses and rail — including possibly reducing service days and hours of operation for commuter rail — would impact almost all riders.
Q: What is the Americans with Disabilities Act, and how does it relate to paratransit services?
A: The Americans with Disabilities Act requires transit agencies to provide paratransit service within three-quarters of a mile of fixed-route services. Shrinking the number of routes in service would allow for downstream cuts impacting about 17% of paratransit trips.
Q: What is the next step in the process, and when will the service changes take effect?
A: DART plans to hold public meetings in June and early July and a public hearing July 8 before service changes would move to the board for approval in August. If
