Bus service will continue in Kansas City, with the addition of $2 fares for most riders, after the city council and the Kansas City Area Transportation Authority finalized a new contract.
This puts an end to the months of conflict between the city council and KCATA since the last contract expired at the end of April. Earlier this month, KCATA leaders said the agency would have to make cuts or stop bus service in the city entirely. Without a contract, the agency hadn’t received any money from Kansas City in months and was drawing on its reserves.
Both the city council and the KCATA board of commissioners unanimously approved the contract this week.
Council member Eric Bunch was appointed to the KCATA board of commissioners last week to represent parts of Kansas City. He said this “11th-hour negotiation” was successful because members of the KCATA board like vice chair Bridgette Williams, and the city under city manager Mario Vasquez, put in the work to make it come together.
“The negotiations had been really stalled out over the last several months, and it was vital that we got something done,” Bunch said. “This, in no way, is an ideal way to negotiate a $77 million contract, but it was what it was. Honestly, both parties really pulled through to deliver on something that everyone ultimately got behind.”
Mayor Quinton Lucas said the city and KCATA will continue working together on a long-term plan to make bus service better and find more funding sources.
“I'm proud of our contractual commitment among the City of Kansas City and the regional transit authority to provide reliable service for all in our region,” Lucas said in a statement. “As the primary funder for KCATA, Kansas City will continue working collaboratively with KCATA to build resources in both Missouri and Kansas, supporting stronger performance for all in our area.”
Here’s what’s in the contract, and what’s changed since the first one was proposed in March:
How much is the city giving the KCATA?
Kansas City will provide nearly $78 million to the KCATA, which is what was approved in the city’s budget. That money comes from the two sales taxes city residents pay to support public transportation.
But the city will also come up with a plan no later than Dec. 15 to find additional money for KCATA, which would give the agency more than $93 million altogether. That’s how much the KCATA said was necessary to prevent any bus cuts due to rising transit costs.
What is in the contract?
The contract covers the agency for 12 months since its expiration in April, instead of a six-month contract that the city originally proposed.
Under the new contract, the city requests the KCATA implement a “functionally free” fare model. Most riders will pay a $2 bus fare, but low-income residents and people receiving aid from social service agencies will ride for free. Fares will take months to implement because the KCATA has to change its buses to include a new electronic system.
The new fare model is expected to bring around $10 million annually back into the agency, after Kansas City went entirely fare-free in 2020.
Accountability measures that the city wants KCATA to follow are still in the contract. The transportation agency will have regular audits, follow performance standards the city sets for things like on-time buses, and regularly report back to city council on its progress.
Williams, vice chair of the KCATA board, said the new contract also allows the agency to continue service in Kansas City, Missouri, without any interruptions.
“It demonstrates the strength of regional cooperation in tackling our shared transportation challenges,” Williams said. “The contract also allows us to now focus on the agenda of true regionalism, which includes the implementation of functionally free fare policy and uniting the region to ensure equitable transportation for everyone.”
What is not included in the contract?
Funding for IRIS, the city’s rideshare service, is not included in the city’s contract. The city’s gone back and forth about whether to include IRIS in its contract with KCATA, and nearly cut the service altogether in April. The program costs more than $6 million a year to run, and currently covers the entire city.
Council members in the city’s Northland have consistently fought to keep IRIS running, since bus routes are so sparse north of the Missouri River.
City Manager Mario Vasquez said in Thursday’s city council meeting that a contract for running IRIS will be negotiated separately. The city plans to limit the rideshare to only run in the Northland — or parts of Kansas City in Clay and Platte counties — moving forward.
When does this contract expire?
The new contract expires April 30, 2026, which is the traditional time frame for the KCATA’s contract with the city.
Many city council members expressed concern that the two groups would continue fighting when the new contract expires, and want to see a long-term plan from KCATA to prevent that.
Council member Johnathan Duncan, who represents parts of south Kansas City, said he’s happy about the new contract getting signed, but worries about what comes next.
“We all know there's a lot more work that needs to be done,” Duncan said. “What I haven't heard about is a strategic plan that's going to get us five years from now so we're not back here talking about this come next contract agreement time.”
Many of the region’s suburbs, including Independence, Gladstone, Blue Springs and Grandview, have ended their bus contracts with KCATA, which puts more stress on the agency’s finances. Currently, Kansas City covers nearly all of KCATA’s overhead costs, which takes about $19 million out of the city’s funding.
City council members have been clear they want the KCATA to seek out more funding from surrounding municipalities, Missouri and Kansas, and the federal government.
The agency has a new contract with Raytown, which means more funding for the agency and a new bus route that will run through the city starting in September.
In the meantime, the KCATA plans to host a summit with regional leaders in October to discuss ways to increase funding and find a stable regional funding source.
Bunch said he believes the new contract lays the groundwork for increased trust between the city and the KCATA, which have been at odds for years. He said it will take ongoing communication between the two groups to make sure the relationship continues to improve.
“It's not going to be magic just from this contract,” Bunch said. “It's going to take some actual work. I've been really impressed with the work that went into this on both sides. I have great faith that this will be a major turning point in transparency and clear communication to the public.”
