KCTS Funding Explained

At a press conference on Aug. 12, 1986, U.S. President Ronald Reagan said, “The nine most terrifying words in the English language are ‘I’m from the government and I’m here to help.”

Even though these words ring true in many situations, the federal and state governments, through the Federal Transit Administration 5311 grants, have helped the Kimball County Transit Service achieve a successful rural transportation program.

The Federal Transit Administration grant program began in 1975 and helps fund travel industries like Greyhound Bus Lines, Amtrak and airlines. Rural transportation is a part of the Federal Transit Administration and gets a more significant percentage of grant money than the big guys, according to Christy Warner, KCTS administrator.

KCTS has taken full advantage of the federal and state grant program, but any city or county in the state of Nebraska could also have taken advantage of the funds to increase ridership and apply for reimbursements.

It is difficult for some people to understand how the grants and reimbursement work because Kimball County was never blessed with thousands of federal tax dollars coming back into the county, Warner said.

An example of federal and state reimbursement is: A $50,000 employee with benefits at KCTS costs about $5,000 because 90% of wages are reimbursable through federal and state grants.

The county owns the KCTS headquarters building at 3rd and Chestnut streets by the stop light, but KCTS rents it for $7,775 on a monthly basis. About $7,000 is reimbursed, and only $775 is not reimbursed. So, after the federal and state reimbursements come back, KCTS only pays $775 for the building.

The 3rd Street building that KCTS recently started leasing for $4,000 a month from Shane Hays will cost $400 a month due to reimbursement from federal and state money.

In the last fiscal year, KCTS spent $929,165 in the county. This figure includes employee wages, vehicle repairs, gas, tires and windshields. Those items also are reimbursable.

In Warner’s recent KCTS budget, she requested $50,000 of county tax money to finance the transit service, but the KCTS budget is more than $3 million, which includes reimbursements from the federal and state.

Monday through Friday, 13 drivers and 13 vehicles hit the streets to provide a valuable transportation service to people of the area. Five vehicles are available for the weekend.

At the last Kimball City Council meeting, KCTS requested that the city pay 2% of matching funds for the FTA 5311 grant. The county also puts in 2%, and the remaining matching funds come from several different sources, including other cities, counties and insurance rides.

The $80,00 or 2% is to continue in-town service at its current level. KCTS provided 1,229 residents with rides and a total of 18,246 rides inside the city limits in the 2022-23 fiscal year, which is 57% of the total rides given by KCTS.