Capital Area Transportation Authority officials want area residents to approve a proposed five-year millage increase on Tuesday’s primary election ballot.
But with a weak economy, some might not want to increase CATA’s property tax of 1.4 mills by about 58 percent.
The .82-mill increase would cost an owner of a $60,000 home $24.60 more a year in property taxes. An owner of an $80,000 house would pay $32.80 more annually, said Debbie Alexander, CATA’s assistant executive director.
Although the buses cover many communities in the area, only residents in Lansing, East Lansing, and Delhi and Meridian townships support the transportation authority with property taxes. Only residents of those communities will vote on the measure.
CATA took over MSU’s bus service in 1999, but pays for on-campus routes through a contract with the university.
East Lansing resident Arthur Wohlwill rides on CATA buses and said he is in favor of the millage. Wohlwill, who doesn’t own land, and said he is worried landowners won’t vote for the increase because they tend not to ride buses.
“They were talking about cutting back on those services, so I think there should be a higher tax,” the Lansing Community College instructor said.
CATA executive director Sandy Draggoo said the increase is needed to maintain basic services.
For each of the last six years, CATA’s ridership has increased about 13 percent, she said. Estimates for this year project about 8.75 million rides, or an increase of about 10 percent.
Insurance costs also increased 135 percent as a result of the Sept. 11 terrorist attacks, Draggoo said.
Alexander said adding service to new developments, such as the Eastwood Towne Center in Lansing Township, will further increase demands on public transportation.
If the millage isn’t passed, services will be cut, Draggoo said.
Although some public transportation facilities use advertisements on the sides of buses to bring in revenue, Draggoo said such a move would tarnish CATA’s image and only are a viable option for large cities.
“A system our size cannot make money on those,” she said.
Staff writer Amy Bartner contributed to this report.
