Cedar Valley Services was awarded about $470,000 in state transit grant funding on Thursday.

State officials announced the Greater Minnesota transit grant to increase service hours in Freeborn, Mower, Steele and Waseca counties.

The grant was part of a $23.7 million grant package, which will be allocated to 23 transit providers in Greater Minnesota, announced by Lt. Gov. Tina Smith and Department of Transportation Commissioner Charlie Zelle.

Melinda Estey, transit manager at SMART Transit, which is owned and operated by Cedar Valley Services, said the grant will allow Cedar Valley to provide public transportation — with an emphasis on preschool transportation for 100 students — six hours per day, Monday through Friday, in Freeborn County. The grant will allow for similar expansion in Steele County.

“That’s a pretty phenomenal opportunity from our perspective,” Estey said.

The grant will allow for nine service hours per day Monday through Friday in Mower County, with an emphasis on providing preschool transportation.

“All three service expansions are in line with the state of Minnesota’s transit access plan and will require the purchase of new buses to meet the needs,” Estey said. “With the current bus manufacturing schedule, we anticipate adding these new services at the beginning of 2018.”

The grant funding will cover the cost of purchasing three new buses to provide the services. According to Estey, the funding will help the organization shorten its waiting list.

In a conference call Thursday, Lt. Gov. Tina Smith said grant applications were accepted in a competitive process. A number of worthy projects were rejected, she said, adding the number of qualified projects that did not receive grant funding indicated the need for more funding for transit projects. 

According to officials, grants will increase transit services in Greater Minnesota by 100,000 hours over the next two years.

“Transit matters to every corner of Minnesota,” Smith said in a press release. “Residents of Greater Minnesota took 12.2 million trips in 2015 alone. The need is only expected to grow in coming years. These new grants will provide more Minnesotans reliable transit access. Our administration looks forward to working with the Legislature this year to make additional investments in transit, roads and bridges.”

In the press release, Zelle described transit in Greater Minnesota as vitally important.

“There are fewer options in our rural communities for Minnesotans who don’t drive,” he said. “These bus services are a critical lifeline for many Minnesota workers, seniors, students and families across our state.”

According to officials, the Minnesota Department of Transportation estimates the operating expenses for Greater Minnesota transit will exceed revenue by 2021. The deficit is expected to reach $31 million by 2025. Additional resources are expected to be needed beginning in 2021 for a long-term service plan that meets the demands of Greater Minnesota transit users.

Greater Minnesota transit grants

East Grand Forks: $731, 200

Mankato: $3.18 million

Moorhead: $1.39 million

Rochester: $2.52 million

Duluth Transit Authority: $3.99 million

St. Cloud Metro Transit: $4.01 million

Arrowhead Economic Opportunity Agency: $2.36 million

Becker County Transit: $197,700

Brown County Human Services: $52,600

Cedar Valley Services: $471,800

Central Community Transit: $298,600

Heartland Express: $1.69 million

Kanabec County: $123,400

Prairie Five: $209,000

Productive Alternatives: $249,500

Three Rivers Community Education: $620,000

Tri-County Action Program: $422,500

Tri-Valley Opportunity Council: $108,800

Wadena County: $314,000

United Community Action Partnership: $289,200

City of Hibbing: $47,300

Minnesota River Valley Transit: $59,000

City of Winona: $324,500