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Catawba Valley Mass Transit Grappleswith 12 Million Budget Deficit Threatening Service Cuts

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  Published in Automotive and Transportation on Sunday, August 17th 2025 at 23:53 GMT by Chicago Tribune

Hickory, NC – The Catawba County Area Transportation Authority (CATA), a vital lifeline for thousands across the region, is facing a significant financial crisis. A looming $12 million budget shortfall, confirmed by CATA officials and detailed in recent board meetings, threatens to drastically curtail services unless substantial changes are implemented or alternative funding sources secured. The situation, exacerbated by rising operational costs and stagnant federal support, has left riders and local leaders concerned about the future of public transportation in the Catawba Valley.

The shortfall, as reported by WILX earlier this week, isn’t a sudden development but rather the culmination of several converging factors. While CATA's budget for 2024-25 was initially projected at $36 million (as detailed in their annual report available on their website), revenue projections have fallen short, and expenses have steadily climbed. The primary driver of this deficit is a combination of inflation impacting fuel costs, maintenance needs for an aging bus fleet, and increased labor expenses – all while ridership hasn’t fully rebounded to pre-pandemic levels.

“We've been managing with cuts and adjustments for years,” explained CATA Executive Director John Overman in a recent board meeting (minutes available on the Catawba County website). “But this $12 million represents a level of deficit we simply cannot absorb without making difficult choices that will directly impact our riders.”

The potential consequences are stark. CATA is currently exploring several options to address the shortfall, all of which involve reducing service levels. These include: eliminating certain routes, particularly those with lower ridership; decreasing frequency on existing routes; implementing a tiered fare system potentially impacting low-income riders; and delaying planned fleet upgrades. The possibility of reducing operating hours across the entire system is also on the table.

The impact would be felt acutely by CATA’s vulnerable rider base. According to data from CATA's 2023 annual report, over 60% of riders rely on the service for essential needs like accessing employment, medical appointments, grocery shopping, and education. Many are low-income individuals, seniors, and people with disabilities who have limited or no alternative transportation options. Eliminating routes or reducing frequency would effectively isolate these individuals, hindering their ability to participate in daily life and potentially impacting their health and economic stability.

“CATA is more than just a bus service; it’s a critical social safety net,” stated Sarah Miller, Director of the United Way of Catawba County, who has been actively advocating for increased funding for public transportation. “Cutting services will have ripple effects throughout our community, impacting not only individual riders but also local businesses and healthcare providers.”

The current situation highlights a broader challenge facing rural transit systems across the nation. While urban areas often benefit from higher population density and greater access to diverse funding streams, rural transit agencies like CATA are frequently reliant on limited federal and state allocations, making them particularly vulnerable to economic fluctuations. The article referenced a report by the American Public Transportation Association (APTA) which details these challenges nationwide; that report can be found here: [ https://www.apta.org/research-technical-assistance/rural-transit/ ].

CATA is actively pursuing several avenues to mitigate the crisis. They are lobbying state legislators for increased funding, exploring grant opportunities at both the federal and state levels, and working with local businesses to secure sponsorships. The board has also initiated a comprehensive review of operational efficiency, seeking ways to streamline processes and reduce costs without compromising service quality.

However, securing additional funding is proving difficult. State budget allocations are already stretched thin, and competition for federal grants is fierce. The Catawba County Commissioners have expressed concern over the situation but indicated limited capacity to provide direct financial assistance due to existing county obligations.

“We understand the vital role CATA plays in our community,” stated Commissioner Randy Isenhour during a recent meeting (available on the Catawba County government website). “But we also have a responsibility to manage taxpayer dollars responsibly and ensure that all county services are adequately funded.”

The next few months will be crucial for CATA. The board is expected to present a detailed plan outlining proposed service reductions and alternative funding strategies at its September meeting. Public input sessions are planned throughout the region, providing riders and community members an opportunity to voice their concerns and contribute to finding solutions. The future of public transportation in the Catawba Valley hangs in the balance, demanding immediate attention and collaborative action from all stakeholders.