Proposed Budget Cuts Threaten Mat-Su Public Bus Service, Including Anchorage Commuter Routes The Matanuska-Susitna Borough Assembly is considering a $250,000 reduction in local funding for Valley Transit, which could lead to significant service cuts, including the cancellation of Saturday routes, reduced operations, and the elimination of technology support. The proposed cuts are part of broader efforts to lower borough spending and stabilize tax bills amid inflation and rising property values. Public bus service in the Matanuska-Susitna Borough, including commuter routes to and from Anchorage, faces potential reductions under a proposed budget cut set to be reviewed by the Matanuska-Susitna Borough Assembly this week. Borough Manager Mike Brown has proposed allocating $750,000 in local funding for the service next year, a decrease of $250,000 from the amount officials with Valley Transit, the region’s public bus contractor, say is necessary to maintain current services. Valley Transit currently receives a combined $3 million annually from local funding and federal grants.However, because federal funding is contingent on local financial contributions, the borough’s proposed reduction would result in an overall loss of approximately $750,000 for the transit system, according to transit officials. If approved, the cuts could lead to the cancellation of all Saturday service, a 50% reduction in bus routes and operations, and the elimination of technology support such as fare payment apps and real-time bus tracking.The proposed reductions do not impact Sunshine Transit, which operates from Houston to Talkeetna, or the Chickaloon Area Transit System, which serves the Sutton area. Valley Transit is the sole public passenger bus service in Mat-Su’s core region, offering 14 weekday and four weekend trips to and from Anchorage on six motorcoaches, with an average of about 55 round-trip rides per day, totaling approximately 34,580 rides annually.Each bus has a capacity of around 50 riders per trip, with scheduled stops at park-and-ride facilities in Mat-Su and the transit station in downtown Anchorage. Drivers can also make unadvertised by-request stops on Glenn Highway off-ramps to pick up or drop off individuals during commuter routes, with pickups bookable in advance or requested at boarding.Additionally, Valley Transit offers a demand-response service for point-to-point rides within Mat-Su, booked on a case-by-case basis through the Valley Transit website. This service utilizes a fleet of seven shuttle buses, vans, or small SUVs and serves about 24,700 riders annually, including disabled individuals, seniors, students, and others unable to drive themselves. Rides can be booked up to two weeks in advance, though the service typically has a daily waitlist of about five people due to capacity constraints.The recent school bus worker strike exacerbated this issue, with more than 50 riders unable to secure service on some days as parents relied on the system to transport students. Fare prices for users traveling to and from Anchorage are $7 one way, $10 per day, or $120 per month, while on-demand rides start at $3, with fees based on distance. Discounts or free rides are available to students, seniors, veterans, and employees of partner companies.Rider payments account for about 1% of the system’s funding, a common scenario for public transit services nationwide, which typically rely heavily on government subsidies. The proposed cuts are part of broader efforts by Assembly members to reduce borough spending, lower the mill rate, and stabilize local tax bills amid inflation and rising property values. Borough officials are currently finalizing tax bills to be sent in July, with an estimated rate of $797 per $100,000 in property value.The Assembly is expected to vote on the proposal by late next week. The funding shift comes as Mat-Su’s population growth has led to changes in federal grant rules, requiring local governments to cover about half the cost of public transit or risk losing federal funding entirely. Previously, Valley Transit received nearly $3 million in direct annual federal funding with minimal government oversight. Now, the borough must administer the funds through a contract or municipal-run system.Mat-Su officials opted for a contract, and Valley Transit was the sole bidder. While Assembly members initially approved full funding for the program, some indicated plans to reevaluate the service this year, considering potential cuts or changes. Valley Transit Executive Director Jennifer Busch addressed the Matanuska-Susitna Borough Assembly during a special budget hearing on April 28, 2026, highlighting the challenges faced by the service