Dallas Area Rapid Transit’s board of directors got its first look this week at a new study that could shape how member cities pay into the transit system — and how the agency determines its next budget.
The report by the consulting firm Ernst and Young shows how DART spent its money in each of its 13 member cities in fiscal year 2023. During a Committee of the Whole meeting Tuesday, directors heard directly from the firm’s consultants.
“We did want to emphasize that these results represent a snapshot in time,” said Adam Christian, senior vice president for Ernst and Young.
Each member city contributes a one-cent sales tax contribution to the agency each year. The study shows that some cities, like Dallas, Garland and Irving, get more bang for their buck.
Results show the city of Dallas contributed a little more than $407 million to the agency from that one cent, while DART spent about $690 million on operating, capital and interest expenses in the city.
Other cities, like Highland Park and Plano, contributed significantly more than the agency spent in those cities. Plano contributed more than $109 million, but DART spent less than half of that — about $44 million — on total expenses in the northern suburb.
“This is a very, very significant issue in my city, and this information which you've provided us, I think, will be helpful as the city engages with DART to better understand how their contribution and the service they get can be addressed,” board member Paul Wageman, who represents Plano, told the EY consultants.
Directors agreed to further discuss the results at a future meeting, but the study will factor in how the board determines the agency’s budget for the upcoming fiscal year. The board has been divided on how much to cap growth in its operating budget, between 3% and 5.5%.
During an August meeting, DART staff told the board that capping growth by 3% would lead to service cuts that would include eliminating bus routes and reducing GoLink services. On Tuesday, staff came back with capping options for directors, but the committee was unable to pass a draft budget because of disagreements over growth caps and budget cuts.
“The bottom line story here, DART is not broke. Don't fix it," said Enrique McGregor, who represents Dallas and Cockrell Hill. "This is a good budget."
McGregor and other board members hoped to advance staff’s originally proposed $1.8 billion budget, but it didn’t get enough to pass. Another motion to cap growth at 4.6% also failed.
“This isn't helping my city,” Wageman said in response to the staff’s presentation. “This is a status quo budget.”
The committee is scheduled to discuss the budget at its Sept. 24 meeting before a final vote at a general board meeting.
Pablo Arauz Peña is KERA’s growth and infrastructure reporter. Got a tip? Email Pablo at parauzpena@kera.org. You can follow him on X @pabloaarauz.
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