Detroit’s SMART to cut service, lay off 123 workers
After nine months of negotiations, the agency and unions representing more than 800 of its employees failed to reach agreements. Agency’s loss in revenue from local property taxes, farebox proceeds, and state and federal funding also prompted the cuts.
Detroit-based Suburban Mobility Authority for Regional Transportation (SMART) and unions representing more than 800 of its employees failed to reach concession agreements, causing the agency to cut bus services by 22 percent and lay off 123 employees.
The unions — Amalgamated Transit Union (ATU), United Auto Workers (UAW), American Federation of State, County and Municipal Employees (AFSCME) and Teamsters — have been without a contract since the end of December 2010.
Throughout the recession, SMART worked to maintain the existing bus service. The agency’s management has instituted $11 million in budget adjustments over the past three years, including a fare increase. However, revenue continues to drop due to lower millage collections and reduced state and federal funding, while at the same time, fuel and healthcare costs have increased.
SMART is supported by local property taxes, farebox proceeds, and state and federal funding. The biggest loss in revenue has resulted from the drop in property values — a 24 percent decrease since 2009, with an 11 percent decrease in millage revenue this year alone.
To add to the financial woes, SMART will receive less state and federal funding because of the cuts in service made by the Detroit Department of Transportation (DDOT). While all other Michigan transit agencies are funded independently of each other using uniform formulas, Michigan’s Act 204 treats SMART and DDOT as one entity for funding purposes. This means any cuts made by DDOT reduce state and federal funding available to SMART. This year DDOT implemented two rounds of service cuts, in June and September, thereby causing more revenue loss to SMART.
Since November 2010, SMART has been in negotiations with each union. After nine months of negotiating, no agreements have been reached. SMART’s non-represented employees have already taken wage reductions and other benefit concessions. Without the union participation in wage and benefit concessions, SMART is forced to cut bus services.
For additional reporting on the cuts from The Detroit News, click here.
More Bus
Frontrunner Bus Group Expands with New Massachusetts Headquarters
The significantly larger facility will provide the infrastructure needed to support the company’s growing workforce, advanced technologies, and expanding product line.
Read More →
Joshua Schank on Transportation Innovation, Risk, and the Future of Mobility
In this edition of METROspectives, Joshua Schank discusses lessons from launching LA Metro’s Office of Extraordinary Innovation, the challenges of advancing new mobility technologies, and much more.
Read More →
Reinventing Fleet Maintenance with Real-time Visibility and AI
Transit leaders need to know what needs fixing, where to look, who is responsible, when work is completed, and what it costs without having to chase information across disconnected systems.
Read More →
SamTrans Sets Priorities for Potential Connect Bay Area Revenue
The board-approved framework allocates future funding to maintaining service, rider improvements, equity initiatives, and infrastructure repairs.
Read More →
When Routine Fails: How Public Transit Must Adapt for the World Cup
The 2026 FIFA World Cup will test transit agencies’ ability to manage unpredictable travel patterns, making real-time data and operational flexibility critical to moving millions of visitors efficiently.
Read More →
Photo Highlights from APTA's 2026 Mobility Conference
The photo gallery captures scenes from the conference, including the International Bus Roadeo, exhibit hall activities, the Bus Showcase, and much more.
Read More →
Chicago's NITA Act Moves Into Next Phase as Service Improvements Begin
Rider-focused improvements will begin rolling out across the system immediately as CTA, Metra, and Pace increase service this summer in the six-county region.
Read More →
Philadelphia's SEPTA Approves Annual Transit Service Plan
Between 2021 and 2024, SEPTA held more than 200 public meetings — including 144 in-person sessions — throughout the SEPTA service region.
Read More →
A True Low-Floor Minibus Design Delivers Better Accessibility and Efficiency for Everyone
As transit demands evolve, so should your fleet. Download the whitepaper to see how the Low-Floor Frontrunner Minibus compares to traditional options.
Read More →
WMATA Debuts 'Fares Pay for Service' Awareness Campaign
The campaign was highlighted during a media event at the Paul S. Sarbanes Transit Center in Silver Spring, where WMATA’s GM/CEO Randy Clarke joined Metro Transit Police officers, WMATA management team, board members, and staff to expand fare enforcement and customer education efforts on Metro Bus routes throughout the region.
Read More →