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CATA facing $12 million budget shortfall, could see service reductions

Capital Area Transportation Authority CEO Brad Funkhouser speaks at a Lansing City Council Committee of the Whole meeting on Aug. 11, 2025.
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Capital Area Transportation Authority CEO Brad Funkhouser speaks at a Lansing City Council Committee of the Whole meeting on Aug. 11, 2025.

Bus service in the Lansing area could face significant cuts next year as the Capital Area Transportation Authority faces a budget shortfall of about $12 million.

CATA CEO Brad Funkhouser says the deficit is caused by “plummeting” state and federal grants.

He says CATA should be able to continue existing service without major disruptions for about a year as they have been saving and investing their regular revenue while using leftover federal funds received during the COVID-19 pandemic.

“We planned for it,” Funkhouser said. “We’re able to sustain service right now and continue some of these programs, hoping that we get a little bit of a turn here or there in looking for other grants.”

If no new funding sources are identified, Funkhouser says they will likely have to make cuts affecting all jurisdictions that could reach as high as 10%.

A public hearing on CATA’s budget for Fiscal Year 2026 will be held Aug. 20 at the Lansing Center.

CATA is a financial supporter of WKAR.

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