Public transit is essential infrastructure that supports a thriving region. Every day, DART connects thousands of central Iowans to jobs, healthcare appointments, education and other opportunities that promote a healthy life. These connections help communities attract new business, expand their workforce and compete as a region with other cities.
We strive to provide the most efficient and effective services possible with the taxpayer dollars we receive. Our latest budget reflects a collaborative effort among our 12 member communities to balance the interests of transit riders, taxpayers and communities. We anticipate maintaining service levels with the funding we receive through June 2026 as we reimagine together what we want our Greater Des Moines public transit system to be for the future.
View the FY 2025 DART Budget Book.
How is DART funded? 
All public transit agencies across the U.S. receive public funding because they provide a public service, just like roads, parks and libraries. A mix of federal, state and local dollars allows DART to provide transit services that results in nearly 3.5 million rides each year (more than the Des Moines International Airport!).
In Iowa, public transit is funded through a property tax levy, the funding mechanism set by the Iowa Legislature. Local property tax funding provides 67% of DART’s total operating revenue.
The transit levy is approximately 1-2% of a property owner’s total tax bill. This ranges from about $50-$100 per year for someone who owns a $200,000 home.
How does the property tax levy work?
DART’s governing body, the DART Board of Commissioners, decides the property tax formula that determines how much each community contributes to DART and sets the levy rates each year when it adopts a budget.
The Commission is focused on how to make the property tax levy work better for member communities as part of a regional system, while also reducing DART’s reliance on property taxes by seeking assistance from the Iowa Legislature for more diverse and sustainable sources of funding. To date, the only additional funding option the Legislature has authorized is allowing the City of Des Moines to increase its franchise fee—a tax on gas and electric bills—by up to 2.5% to fund public transit, which the Des Moines City Council would need to vote on.
What are DART's Funding Challenges?
DART is facing two funding challenges that need to be addressed with the funding tools available in order to maintain service levels.
Challenge 1: Revenue Gap
Like many public entities, DART is experiencing a funding shortfall due to revenue not keeping pace with the cost of providing services.
Several factors have increased budget pressures in recent years:
- High inflation increased the costs for fuel, insurance, bus parts and more.
- Workforce shortages increased labor costs.
- Program changes impacted how much DART can collect in reimbursement for Paratransit trips from Medicaid as demand has grown with an aging population.
- State changes on how much growth can be distributed to local governments, as well as legislative changes that reduce collections on the first $150,000 of commercial property parcels, have impacted property tax revenue.
- State revenue has decreased due to the phase out of the backfill funds.
- Lower ridership post-pandemic decreased partnership and fare revenue.
- One-time COVID-19 relief dollars filled a gap in revenue for several years and is longer available.
Despite increased costs, DART has worked to limit overall budget growth in order to limit property tax revenue increases. Over the past eight years, DART's average annual expense growth has been 4.2%.
Challenge 2: New Formula
The DART Commission adopted a new funding formula that is being phased in over eight years. The new formula assigns member community contributions based on population and level of DART services received. Urban areas are seeing increases in their local levies to match higher service levels in more populated areas, while many member communities will see decreases in their transit levy over the next five years.
The new formula has resulted in Des Moines’ contribution exceeding the maximum amount of property taxes DART can collect to fund public transit per state law. The city has been contributing some additional dollars through its general fund. The amount it will need to contribute will continue to grow over the next five years. When fully implemented, the City of Des Moines will contribute 49% of local funding as the city receives 70% of DART services.
What are DART's Next Steps?
Two-Year Stability Plan
DART has a balanced budget for the next two years. DART’s FY 2025 Budget Book highlights solutions to stabilize DART’s budget, including using one-time DART funds, the City of Des Moines contributing additional funding above what can be collected through property taxes, receiving a $3.6 million MPO grant to provide one-time relief, and cutting $1 million in administrative expenses.
The DART Commission is working to determine funding and service levels for the regional transit system ahead of DART’s FY 2027 budget conversations. By that point, DART expects to have a more significant funding gap, primarily due to phasing in the new formula.
Reimagine DART
Reimagine DART will redesign DART’s public transit network to better align with how people are traveling today and with the level of funding DART expects to receive for the next several years. The DART Commission is defining measures of success for regional public transit and a consulting team will work with DART to determine the types of services DART should provide to meet those goals.
Frequently Asked Questions
- What is DART's vision?
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DART’s current vision is to facilitate affordable, seamless mobility options that support economic prosperity for all.
Through Reimagine DART, we will have an opportunity to decide what we want our public transit to be – do we fund just enough transit service for those who have no other option, or do we want a transit system that can drive the economic and social vibrancy of the region? We believe Greater Des Moines can join many other communities, including Omaha and Indianapolis, that have made the decision to invest in public transit as an economic driver.
We have heard from our elected leaders and central Iowans that people value a regional public transit system. DART looks forward to collaborative conversations about how to provide transportation options that meet our region's needs today – and for the future.
- How is DART governed?
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DART is represented by a board of 12 Commissioners, one from each member government we serve. Each Commissioner is an elected official from their member government. The DART Commission is a volunteer group that sets policy and oversees DART’s budget. DART’s staff manages and carries out service planning and day-to-day operations. Learn more.
- What is DART's total operating budget?
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DART’S operating budget is $43.4 million in the current fiscal year ending June 30, 2025. This budget covers the cost of providing services to 12 member communities in Greater Des Moines.
This budget is separate from DART’s capital budget, which is primarily funded by federal dollars and used for infrastructure needs, such as bus purchases and building repairs. Constructing a new Operations & Maintenance Facility is covered under DART’s capital budget.
- Why doesn't DART charge more for people to ride?
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DART could review its fare rates as part of Reimagine DART.
Increasing bus fare would likely result in fewer people riding DART as a lot of people in our community already struggle to pay their bus fare. Our half-fare program now has more than 1,000 people living in poverty signed up. This is a small percentage of the one-third of central Iowans who do not earn enough to cover a basic household budget. The ALICE Report shares more about poverty in Iowa.
People’s budgets continue to be stretched as the cost of living has increased. More than 60% of current riders have an annual income of less than $30,000, while most of our riders are using the bus system to get to work.
- Can DART address funding challenges by making operations more efficient?
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Public transit is one of the most efficient and effective public services funded with our tax dollars. DART carries a higher-than-average number of passengers per hour at a lower cost per boarding on average than similar size transit systems around the country. Per capita spending on public transit in Greater Des Moines is less than many of the midwestern cities we compete with for talent and economic development opportunities.
DART has worked hard to make our services efficient and innovative, including purchasing smaller vehicles and providing new services. Flex Connect and DART On Demand are especially providing point-to-point services in suburban centers. Partnerships with organizations, such as the Principal Foundation, allow DART to add additional services at no cost to taxpayers.
Fixed-route service is still the most cost-effective way of providing public transit services. DART Fixed Route services average 18 passengers per hour. Some of DART’s busiest routes average up to 27 passengers per hour.
- What would make funding for DART more sustainable?
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DART and its Board of Commissioners have worked for several years to educate Iowa lawmakers on options to diversify revenue and reduce reliance on property tax. Other transit agencies are funded through methods, such as a sales tax, income tax or a motor vehicle tax. DART will continue to educate elected officials on these other options for funding public transit.
- Who does DART serve?
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For most riders, public transit is the only means they have to get to work and to access services and opportunities in our communities. Most riders have one or no working vehicles (86%) in their household and an annual income less than $30,000 (64%). Learn more.
In addition to providing day-to-day essential services, DART also supports the community with its pressing needs. For example, when temperatures are dangerously high, we provide free rides to cooling centers. When big events happen – like the Iowa State Fair – we connect tens of thousands of Iowans safely and efficiently to these opportunities.
- How many people ride DART?
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DART provides approximately 12,000 rides on a typical weekday. DART has had double-digit growth in ridership over the past three years.