TheRide is running $6.3 million ahead of its current-year budget, according to newly released board documents, as the transit agency prepares to hold a public hearing Thursday, Aug. 20, on its proposed FY2027 budget, which projects $77.3 million in revenue against $76 million in spending.

The third-quarter financial report in the board packet shows revenues came in $3.2 million above projections and expenses landed $3.1 million below budget through the first nine months of FY2026. Finance Committee notes from Tuesday, Aug. 11 attribute the surplus to higher-than-expected state operating assistance and favorable interest rates on investments, while expense savings came from vacant positions, lower fringe-benefit costs and transportation spending that ran below projections.

The hearing, scheduled from 6 to 8:30 p.m. at the Ann Arbor District Library (4th floor), is the last formal chance for residents to weigh in before the board votes on the FY2027 budget Sept. 17. Virtual attendance is available via Zoom (passcode: 983308).

The draft FY2027 budget projects $77.3 million in revenues against $76 million in expenses, maintaining full service levels with no fare changes. It is built on the voter-approved 2022 millage, which remains in place through 2028. Deputy CEO of Finance and Administration Dina Reed is presenting the budget to the board.

Reed said when the draft budget was released July 30 that it maintains every current service with no change in fares, and that the 2022 millage provides a stable foundation as the agency continues work outlined in its Long-Range Plan.

Beyond the budget, the Aug. 20 agenda signals other items residents may want to track. Board member Rich Chang is leading a discussion on whether the Ownership Linkage Task Force should become a permanent committee. The agenda also includes a closed session under the Open Meetings Act, a tool the board has used in recent meetings for collective bargaining strategy discussions with the Transit Workers Union.

Those negotiations have drawn public attention. At the July 16 board meeting, eight speakers urged the board to reach a fair contract with transit workers.

"Morale is low with employees and service is being impacted negatively," TWU President Delisa Brown told the board that night.

The board voted unanimously to enter closed session on collective bargaining strategy. Other speakers included AFSCME local president David Kastner, Ypsilanti Township Trustee Lakesa Thornton and Althea McGlory, a maintenance control operator for 12 years.

Free fares on election days are also under active discussion. Chang raised the topic at the Aug. 4 Service Committee meeting, and the committee directed staff to recirculate a 2024 issue brief on the idea. The committee decided to wait for results from an upcoming fare study before acting. Resident Dirk Mayhew spoke at the July 16 meeting in support, saying he has been meeting with other local entities to raise financial support.

A millage recommendation is on the board's forward calendar for October, with the current millage expiring in 2028.

Public comments on the FY2027 budget are accepted through Sept. 17. The draft budget is available online at TheRide.org and for in-person review at TheRide's Dawn Gabay Operations Center, 2700 South Industrial Highway, weekdays from 8 a.m. to 5 p.m.