ND: Bismarck, Mandan agree to help cover Bis-Man Transit 2025 funding deficit
Bismarck and Mandan will use voter-approved sales tax revenue to help Bis-Man Transit cover a 2025 operating shortfall and maintain current service levels.
The Bismarck and Mandan city commissions recently approved funding to address an operating deficit of more than $760,000. Bismarck will contribute $649,392, or about 85% of the total, while Mandan will provide the remaining $110,664.
Bis-Man Transit Executive Director Deidre Hughes said the support will cover key operating expenses — fuel, insurance and utilities — to continue the current level of services. As of the end of November, Bis-Man Transit had provided 127,190 fixed-route trips and 85,345 paratransit trips in 2025 — a 17% increase from 2024.
The funding will also cover the service's operating contract with WeDriveU — a transportation company that operates public transit, paratransit and shuttle services for cities and other organizations under contract.
"Bis-Man Transit is a lifeline for the Bismarck and Mandan communities," Hughes told Bismarck commissioners. "This deficit threatens our ability to provide these essential services."
The nonprofit transit system is funded through local, state and federal money, along with fares and advertising revenue. A portion of its budget comes from property tax revenue. Its 2025 operating budget is $7.09 million.
Sales tax revenue to stabilize transit operations
The funding approved Dec. 16 will come from separate but similar sales taxes approved by voters in the two cities in 2024. Each city has a half-cent sales tax, with two-tenths of a cent dedicated to public transit and the remaining three-tenths of a cent allocated to public safety.
In May, the Bismarck City Commission discussed using up to $1 million in sales tax revenue to help cover Bis-Man Transit’s 2025 deficit, a recommendation from the Transportation Steering Committee. At that time, Hughes told commissioners the projected shortfall was $955,000.
Hughes said rising fuel costs, vehicle repairs, contractor expenses and higher wages needed for staff retention have driven up operating costs. She added that federal grant funding — provided through the Federal Transit Administration's Urbanized Area Formula Grants — has not kept pace with industrywide inflation.
"We typically run out of this funding by September or October of each year," she said. "The remaining expenses are fully absorbed by Bis-Man Transit's cash reserves with no grant reimbursement."
Bis-Man Transit has faced funding instability for the past several years — typically losing over $1.3 million annually. In the past, the service has used cash reserves to balance its budget.
In July 2023, the Bismarck City Commission agreed to allocate $225,000 in 2023 and $230,000 in 2024 to the transit system. The Mandan City Commission allocated $44,823 in 2023 but did not make commitments in 2024.
Both of those allocations were made to ensure the continued operation of the paratransit service outside of the legally required operating hours of 7 a.m. to 7 p.m. weekdays and 8 a.m. to 7 p.m. Saturdays, excluding holidays.
Bis-Man Transit could see service hours expanded in 2026, Hughes said. The agency plans to host public meetings in January, with proposed changes going before the Bis-Man Transit Board ahead of final approval by the Bismarck City Commission, likely in February. Service changes would take effect April 1.
The Bismarck Transportation Steering Committee has recommended adding four hours of fixed-route service Mondays through Saturdays and 3 ½ hours of paratransit service on Sundays. The committee also suggested opening Sunday paratransit service to the general public.
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