The months-long standoff between the city of Plano and Dallas Area Rapid Transit (DART) officially ended on Feb. 23 night with a landmark compromise. Plano City Council members voted to approve a new interlocal agreement that secures a guaranteed return of tax dollars for local projects, effectively pulling the plug on a high-stakes May election that could have seen the city withdraw from the transit agency altogether.

The deal signals a shift from confrontation to “meaningful change,” according to Mayor John Muns, who noted that while the city didn’t get every concession it sought, the agreement creates a more equitable financial framework for Plano taxpayers.

Closing The $65 Million Gap

The drive for reform was fueled by a stark disparity in value. An independent analysis by EY Associates revealed a massive fiscal disconnect: in 2023, Plano taxpayers contributed $109 million to DART, yet the city received only $44 million in direct services.

State Representative Matt Shaheen previously called the gap an “extreme imbalance,” a sentiment exacerbated by recent disclosures that DART awarded more than $800,000 in executive bonuses despite the funding friction with member cities. Now, DART will begin closing the funding gap.

Key Financial Wins In The New Agreement:


10% Revenue Return: DART, with support from the Regional Transportation Council, will return 10% of Plano’s sales tax contributions.
Phased Rollout: The funding return will be implemented over a six-year period.
Restricted Use: These funds must be used exclusively for transportation-related projects within Plano city limits.

“Plano pushed for meaningful change, and we achieved it,” Muns said. “This agreement guarantees a minimum funding return and creates a stronger framework moving forward. While it is not everything we initially proposed, it represents real progress for our community and the region.”

The Human Cost Of The Transit Debate

While the council focused on the bottom line, the emotional weight of the negotiations was carried by riders like Jane Harman. During a special-called meeting in November, the Carrollton resident pleaded with leaders to consider the reality of losing access to her doctors and physical therapy in Plano.

“I’m terrified at what’s going to happen if you vote me out,” Harman told the council, representing the thousands of regional commuters who rely on cross-city connectivity for essential medical care.

By rescinding the withdrawal election, the council has ensured that regional DART services will continue uninterrupted.

A New Partner: Via Microtransit

In addition to the DART compromise, Plano is taking its transportation future into its own hands. The council approved a $4 million contract with Via Transportation, Inc. to launch a microtransit service this spring.

Unlike traditional large-bus routes, Via offers on-demand, flexible transit that will run alongside DART. The city plans to use initial ridership data to potentially launch “circulator” routes in high-density areas such as the Legacy Business Park and downtown Plano.

What’s Next For DART?

While several other cities are in similar fights with DART, transportation in Plano will remain. Though agreement allows member cities more flexibility to exchange or replace certain local services, but the biggest structural changes are still pending. Any permanent shifts to DART’s board governance will require future action by the Texas State Legislature.

For now, the city of Plano is moving forward with a focus on accountability and local control, ending a period of uncertainty for the region’s transit users.

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