Helena's Capital Transit fare increase could pave way toward expanded service

Riders of Helena’s public transportation system, Capital Transit, may have noticed an increase in the rate this month, and with approval from the city commission, the transportation department will increase it 200% come September.

The Helena City Commission approved the increase during its Aug. 7 meeting from 85 cents to $3 a ride, stating that the rate had not been raised since about 1975 and no longer reflected the level of service provided.

The bus switched from traditional fixed-routes to a hail-a-ride model during the COVID pandemic, allowing riders to schedule a pickup and drop-off anywhere within the city through an app on their cellphones. The longstanding rate of 85 cents per ride was carried over to the new model.

Helena Transportation Systems Deputy Director Chris Couey said in an interview that Capital Transit has an about $1.9 million budget this fiscal year and that includes a $447,000 subsidy from the city’s general fund.

In fiscal year 2023, Capital Transit received a $412,000 subsidy from the city’s general fund.

Couey said the switch to a higher level of service at decades-old fares is only part of reason why the yearly subsidy has increased.

He said the department’s allocation of Federal Transit Administration funds through the Montana Department of Transportation also went up about $100,000 this year, requiring a larger match from the city.

“To use those allocations we’re getting, we have to provide those matching funds,” Couey said. “We’re trying to find ways in which we don’t have to reduce transit operations and are not a drain on the general fund.”

Lewis and Clark County recently contributed an additional $10,000 for a total of $100,000 as its annual contribution to the municipal transit program for the purpose of city staff exploring a potential expansion of service into the north valley and over to East Helena.

Capital Transit now boasts a park-and-ride-like option for East Helena residents that can get them to transit headquarters in Helena, where they can schedule another ride within the city or a return trip, doubling the number of rides needed and cost for East Helena riders.

Couey said those opportunities for expansion are still being explored.

And thanks to the region’s rapid growth, the feds are expected to redesignate the greater Helena area as an “urbanized area,” allowing for the establishment of a metropolitan planning organization (MPO).

Such an organization requires governor approval and the creation of a committee to oversee transportation planning in the region. It also opens up access to additional federal funds for those planning efforts.

The new designation also moves the city and its MPO partners into a new pool of FTA funding recipients, meaning more federal allocations and more required matching funds.

That redesignation is expected to come down within the coming months, Couey said.

“The hope is the rate increase also gives a little more revenue to allow us to expand these services,” Couey said. “The better we can grow, the easier it will be to put those plans in place.”

He said the city is anticipating an initial drop in ridership as the higher rate takes effect in September, but the hope is to get everyone who qualifies signed up to receive discounts for students, elderly, disabled and veterans, which he said makes up about 70% of riders.

City staff estimates an annual ridership of around 50,000.

Those who qualify for a discount will need to apply for it through the city’s transportation department.

“We’re actually getting ready to launch the application form online likely this week,” Couey said in an email Wednesday. “Riders will be able to go to the City’s website, fill out their application, even upload the necessary documents. It’s important to note that the City will not keep any of the verification documents, we are only using them the qualify riders for discounts and then they will be disposed of in a confidential manner.”

He said some discount programs may require reapplying annually such as the student discount to ensure the rider is still actively enrolled in an educational program.

If scheduled ahead of time, those who qualify will pay $1 per ride. For a same-day reservation, discounted rides will cost $2.

“I know the word has been out there, but we don’t want to flip the switch on these fares and call it a day,” he said. “We want to get people into these discount programs.”