The MATS route study and COA examined all aspects of transit service in the Muskegon region, including service performance and funding sustainability. At the root of many of MATS’ challenges was an unsustainable funding situation. While federal and state funding cover the majority of MATS’ operating and capital expenses, these funding sources come with local matching requirements for operating expenses. Over the past several years, the amount of local match funding provided by the local funding partners has not kept pace with the rise in costs associated with operating MATS’ service. In addition, many jurisdictions in the County that have historically received demand-response service did not provide any local match funding, creating an inequitable local funding structure.