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Wednesday, May 13, 2026 at 7:50 PM
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San Marcos, Kyle team up to seek urban transit funds

by KIM HILSENBECK


Bus service to San Marcos and Austin that doesn’t involve a Texas State University Bobcat shuttle may be on the horizon for Kyle.


The Kyle City Council has agreed to join the city of San Marcos and Texas State University to form an Urban Transit District. The change will give Kyle a “seat at the table” when pursuing federal funding for transit service, according to Barry Goodman, a consultant hired by San Marcos to help with the formation of the district.


“If I were Kyle, I’d participate,” Goodman told the Kyle City Council last week.


Kyle will no longer be part of a Rural Transit District. The difference between urban and rural districts typically comes down to population and service type. Rural districts operate in large geographic areas with low population density. They also operate demand-respond service as opposed to fixed routes.


The Capital Metro Area Rural Transit Service (CARTS) is an example of service in a Rural Transit District. Senior citizens and others in Kyle rely on CARTS because there is no bus service available.


Goodman, a former legal counselor for the Federal Transit Administration, said most CARTS service is for medical appointments and special needs transit.


Before the City Council voted on the proposal, Mayor Lucy Johnson reminded council members that joining an urban district would mean Kyle would no longer be eligible for rural funds like those that support CARTS.


Goodman said funding for transit would shift from rural to urban, but funding would not go away. The federal funding level would remain the same until after the general election this year, according to Goodman.


With the shift, Goodman said transit funding would go directly to the district; under the rural system, funds are distributed by the state using a formula.


Kyle spokesman Jerry Hendrix said in the future, other funding sources for the transit system would be rider fees, grants and possibly funds from the cities involved.


Under the proposed tri-party interlocal agreement, Kyle would help San Marcos boost its population numbers.


An Urban Transit District is a local governmental body or political subdivision of the state that operates a public transportation system in an urbanized area with a population of between 50,000 and 200,000.


San Marcos would be the principal party that runs the transit system since it has the larger population.


Prior to the vote, council members David Wilson, Russ Huebner and Bradley Pickett questioned whether Kyle could create its own Urban Transit District; each had concerns about Kyle not being in control of the system.


Goodman said San Marcos or Kyle could each create its own district, but joining forces would give both access to significantly more federal transit funding. He also said at this point, entering the agreement would not cost Kyle any money.


In an interview with Goodman earlier this week, he said he has recommended to the parties that they proceed with becoming an urban transit district – which would likely happen by this July – but hold off on making any changes or implementing new transit service for now. CARTS service would remain in place.


“We need careful thinking, planning and time,” Goodman said. “We’ve got to intelligently develop a system that’s affordable, inclusive, and that can evolve over time. Let’s not bite off more than we can chew right now.”


Goodman said a reasonable timeline for the new transit service to begin is fall 2013. Meanwhile, he recommends research to determine existing demand and level of support for a transit system in the San Marcos – Kyle – Buda area.


Input from area stakeholders and the general public will be sought, Goodman said.


“This discussion should include all ideas,” he said.


When asked if he thought area residents would not be in favor of a transit system, he said some might not be. However, unlike Austin, local sales tax money would not subsidize such a system.


Goodman acknowledged, however, that funding from the federal or state government is still tax money.


Council members asked City Manager Lanny Lambert to share his knowledge of transit systems; Lambert worked in cities that managed their own.


“A transit system is very expensive to run,” Lambert said. “Most cities have to subsidize them.”


Goodman agreed transit systems are expensive to run, especially since they have to meet Americans With Disabilities Act compliance and offer paratransit service. However, he said transportation infrastructure is vitally important.


The Kyle City Council voted unanimously to enter the agreement.


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