News Summary
The Chattanooga Area Regional Transportation Authority (CARTA) is preparing a $34.8 million budget for fiscal 2026. This plan addresses underfunding, seeks new revenue sources, and maintains existing fare structures, while also anticipating a loss in federal funding. The city is boosting its support, ensuring financial stability, and enhancing public services through partnerships and improvements to infrastructure.
Chattanooga Prepares for CARTA’s 2026 Budget Amid Financial Challenges
The Chattanooga Area Regional Transportation Authority (CARTA) is preparing a fiscal year 2026 budget of $34.8 million, marking an increase of nearly $5 million from the previous year. This budget aims to tackle ongoing underfunding and explore new sources of revenue while maintaining existing fare structures for some services.
While fixed-route fares will not experience any changes, increases are expected for CARTA Go services and the Incline Railway. Certain parking fees will also see adjustments. Despite a projected loss of $1.5 million in federal and state funding, CARTA anticipates growth in both ridership and parking volume to enhance its revenue streams, contributing to financial stability in the upcoming year.
The city of Chattanooga is showing support by committing an additional $1.3 million this year, bringing the total funding for CARTA to approximately $6.3 million. Furthermore, employee payroll and benefits are set to rise by $2 million, highlighting the authority’s commitment to investing in its workforce.
Service Funding and Improvements
Regional municipalities are also stepping up their financial contributions. Red Bank has pledged to fully fund its Care-A-Van service, ensuring essential transportation for community members. East Ridge has secured the necessary subsidies to keep its service operational until a long-term solution is developed.
In an effort to enhance public transportation services, CARTA is focusing on partnerships with smaller communities, such as Lookout Mountain, which have expressed challenges in funding services necessary for Incline Railway passengers. Service enhancements will include the construction of raised, covered platforms along popular routes and increasing frequency on six routes to every 15 minutes.
In total, CARTA plans to establish 33 multi-use hubs at community centers and libraries to improve access and convenience for riders. Additionally, the Incline Railway is set to reopen on July 14, with tickets now available for sale. A year-long maintenance easement has been granted by the National Park Service, ensuring proper upkeep of this vital service.
Revenue Growth Initiatives
Recent initiatives have already shown promising results for revenue increases. A “first-hour-free” pilot program at CARTA parking garages led to a 37% increase in revenue at Shuttle Park garages, alongside noteworthy gains in second-hour stays. Moreover, a free shuttle service initiated on the North Shore, in response to Walnut Street Bridge repairs, has successfully attracted over 3,000 riders since launching.
To further engage with its ridership, CARTA will establish a Rider Advisory Committee aimed at improving customer satisfaction and optimization of services. Members will be compensated with bus passes for their input and participation in discussions.
Pursuing Future Projects
CARTA is actively seeking grant funding to support various projects, one of which includes engineering plans for a new downtown bus station. The authority is also committed to improving transparency in its budgeting processes, ensuring that community members understand how funds are allocated and spent.
Conclusion
As CARTA navigates fiscal challenges and strives for improved public transportation services, the authority’s upcoming budget for 2026 reflects a commitment to both enhancing user experience and ensuring sustainability through diverse revenue streams. The measures being implemented demonstrate a proactive approach to addressing financial hurdles while focusing on the needs of the Chattanooga community.
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Additional Resources
- Times Free Press: Under New Leadership, a Revitalized CARTA Makes
- Wikipedia: Chattanooga
- Chattanoogan: CARTA Broadening Its Fundraising
- Google Search: CARTA funding
- NewsChannel 9: CARTA’s Budget Boost
- Google Scholar: CARTA Chattanooga
- Times Free Press: Kelly Administration Defends Split Budget Proposal
- Encyclopedia Britannica: CARTA
- WDEF: East Ridge Considering Cuts to Care-A-Van Service
- Google News: CARTA Chattanooga services
