CARTA officials said Thursday that the transit agency faces "a fiscal cliff" without additional help from the city and county.
Charles Frazier, CARTA's new executive director, said, "It's a very real concern that's coming. We want to be completely transparent on the fact that we're living on borrowed time."
He said CARTA has been getting by with the use of one-time federal ARPA funds, but those are running out. The amount remaining is just over $4 million. CARTA received a total $10,784,808 in ARPA funds to help navigate through the COVID pandemic.
Without increased local help, those funds will be used up by the 2025-2026 budget year, it was stated, though CARTA has until 2029 under federal rules to spend it all.
Despite the fiscal woes, the CARTA board passed a budget that tops $31 million - an increase of 12.67 percent from current spending. It relies on $1,126,523 of ARPA funds.
Board Chairman Johan de Nysschen said, "Keeping the status quo is not an option."
Officials said the majority of the APRA funds have been used since 2020 "to continue to provide essential service to the community with no significant reductions in service, despite rising costs and no additional contributions from local sources for at least five years.
"CARTA relies on local funding from municipalities to balance the budget and to prevent reduction in services."
The budget includes raising charges at the Incline Railway by 25 percent, plus adding a $1.25 ticket charge for capital expenses.
It includes service quality improvements of $716,889 and innovation costs of $218,137. There will be $40,000 in safety and security enhancements.
Officials said there will be spending to keep the buses cleaner and to improve the condition of bus shelters.
Other items include a microtransit expansion of $504,136. This refers to the agency's on demand service.
The CARTA board recognized two retirees - Cynthia Stevenson with 29 years and Lolita Blackmon with 32 years.