Public transportation providers across Missouri are preparing for proposed budget cuts, which would cut a large chunk of the remaining state general revenue funding for transit programs if approved.
In his January State of the State Address, Gov. Mike Kehoe proposed eliminating $5 million in general revenue funding for public transit. If approved, the cut would leave just $1.7 million in state transportation funds to be divided among 30 transit providers statewide.
Under Kehoe’s leadership, this would result in an 85% reduction over two years.
“We have very little left. We have pennies left for public transit in the state of Missouri if this recommendation goes through,” said Kimberly Cella, executive director of the Missouri Public Transit Association.
This comes after Kehoe made cuts to public transit last year. In January 2025, Kehoe recommended a $5 million reduction to transit funding. Lawmakers initially worked to block the cut and recommended maintaining funding at $11.7 million.
But in June, Kehoe moved forward with the $5 million cut, which reduced the transit fund by roughly 40%.
“Our providers are scrambling, and they make every dollar count, but there’s only so much we can do without state support of public transit,” Cella said.
To combat the expected cut, Cella said providers are reducing ride frequency, routes and operator bases, with some providers having to potentially let operators go.
The reduction in funding could mean that older transit vehicles will not be replaced, which increases operating costs and reduces service quality.
“This is about people’s lives, and we’re impacting mobility, which is impacting the people’s quality of life and potentially their health,” Cella said. “It’s going to impact everyone across the state, whether you ride transit or not, people are going to be left behind.”
Kehoe said the proposed funding reductions aim to address Missouri’s projected $2 billion budget deficit, which requires lawmakers to reevaluate spending priorities.
“When you’re getting money from the state government, there’s always the chance that you get more or you get less year to year,” said Elias Tsapelas, director of state budget and fiscal policy for the Show-Me Institute.
The Missouri Public Transit Association is a state grant-funded program that receives its funding through allocations made in the state budget. Although the governor proposes a budget plan each year, lawmakers must pass legislation with a state budget plan.
The governor then has the power to veto funding from the plan that lawmakers approve. Many of these past vetoes from Kehoe and his predecessors were attributed to ensuring that viral programs were funded and the state coffers maintained some funds for future needs.
“This program is competing against all the other state provided services like Medicaid that are mandatory, and this is a program that would be considered discretionary,” said Tsapelas. “There’s going to be a lot of people that are dealing with various cuts to the budget. That’s just the nature of receiving government funding.”
The association is urging lawmakers and the governor to retain the $5 million in the state budget that must be approved by the end of the legislative session. The organization, which represents public and specialized transportation providers across the state, also created a sign-on letter backed by 37 groups, including AARP Missouri and BJC Healthcare.
Public transportation providers are exploring private contracts and other revenue sources to help ease this potential cut. But, Cella said, “state funding is crucial.”
“There’s more and more need for transit in our urban and rural areas,” Cella said. “People need to tell their stories; transit agencies need to tell their stories.”
This story was first published by Missouri Business Alert, a fellow member of the KC Media Collective.
