The city council voted to raise fares for Dial-A-Ride at its Feb. 17 meeting. Courtesy | Wikimedia
The Hillsdale City Council approved a fare increase for its Dial-A-Ride service as city officials strive to cover a funding gap caused by inflation and a drop in money from the Michigan Department of Transportation.
Dial-A-Ride has provided subsidized transportation for Hillsdale residents for decades, Ward 4 Councilman Robert Socha said. But over the past three years, declining state contributions have forced the city to cover the shortfall through its general fund. To ease this financial strain and make the service more self-sustaining, the city is hiking fares.
City Manager David Mackie said fare rates are typically reviewed as part of the city’s annual budget process.
“The City of Hillsdale has the authority to set Dial-A-Ride fare rates based on local needs and considerations,” Mackie said. “When setting fares, the city considers the operational needs of Dial-A-Ride alongside the funding it receives from state and federal sources to help offset service costs for Hillsdale residents. In recent years, state funding for this service has declined significantly.”
Under the new schedule, in-town fares for adults will rise from $3.50 to $5, and fares for children, students, seniors, and individuals with disabilities will climb from $2 to $2.50. For trips to or from designated out-of-town locations, adult fares will move from $5 to $6 with corresponding increases for other riders.
While Hillsdale sets its Dial-A-Ride rates locally, Mackie also said certain exceptions — such as Michigan Department of Transportation caps on peak-hour fares for seniors and individuals with disabilities — still apply.
The proposal for the fare increase was set in motion when Acting Mayor Joshua Paladino sought to lower the city’s general fund contribution to the upcoming fiscal year Dial-A-Ride budget.
“The City Council referred the proposal to both the Dial-A-Ride Local Advisory Committee and the council’s standing Public Services Committee for further discussion,” Mackie said. “After deliberation, both committees recommended a fare increase, effective July 1, 2025. City Council subsequently approved the increase at Monday’s meeting.”
Ward 3 Councilman Gary Wolfram said the council carefully considered the adjustments.
“I agreed with the recommendation as we are trying to keep the city in strong fiscal shape, and the fare increases are not substantial,” Wolfram said. “As both of the committees that studied the issue recommended the increase, I voted to approve.”
He also said that if advertising revenue meets expectations, future rate hikes may not be necessary.
Fare revenues currently account for approximately $58,000 of the service’s overall income, making up about 14% of the total budget, with a reliance on a general fund allocation of $112,623 for the fiscal year.
In addition to the fare adjustments, an advertising initiative on Dial-A-Ride bus windows is expected to generate $36,000 in supplemental revenue over the next year, according to city documents.
“This unfortunate set of events has given the Public Services Committee much to discuss and bring before the full board to help Dial-A-Ride become less of a burden to the general fund and hopefully self-sustaining in the future,” Socha said.
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