Don’t Let the TDC Stonewall Using Tourist Monies for Tourist-Serving Transit
Why the City Must Push Monroe County and the TDC to Act Now on Using Tourist Tax Dollars for Tourist-Serving Transit While Also Planning for the Future
Streets for People | Friends of Car-Free Key West & Duval Street/Historic Downtown | Chris Hamilton | January 11, 2026
At Tuesday’s January 6 Commission meeting, hope was in the air that a little funding for our beleaguered public transit system could be found. It came in the form of a discussion item brought forth by Commissioner Monica Haskell that asked the question: “Should the City seek tourist tax funds to support tourist-serving transit like the Duval Loop?”
Nearly all of the Commissioners said some form of yes, let’s pursue it. The City Manager said he was already on the case too. And a letter of apparent support arrived just before the meeting from Kara Franker, the President and CEO of the County’s Tourist Development Council (TDC). Everything seemed to be aligning nicely for a helpful solution to a funding problem that has bedeviled both the City and County transit programs.
Except upon reading the fine print of Ms. Franker’s letter, which wasn’t available until after the meeting, perhaps it wasn’t as supportive as some thought and cheered. Her phrase “I’m not opposed, in principle” gave us immediate pause. And it seems like she’s sowing the seeds for kicking the can down the road by offering that the “appropriate next step is a deliberate, countywide evaluation of tourist-oriented transportation needs” and that it’s “a topic worth studying thoughtfully.” One can imagine that by the time this is thoughtfully studied and deliberately planned to death over the next few years, the Duval Loop will be a distant memory and more frequent transit on other routes will be too.
No. Absolutely not. We can walk and chew gum at the same time. Yes, Ms. Franker’s correct, we should indeed be planning for the future. But the next budget year that begins October 1, 2026, for which there will be discussions this summer, should include fully funding a free Duval Loop out of Tourist Tax Dollars. And they should add some funding for the Lower Keys “Tourist” Shuttle too. The TDC marketing juggernaut can spare a few million next fiscal year, while they, the County and the City plan for the big stuff. Let’s break it down in our story below.
Recap: Why Tourist Tax Funds for Transit?
Key West’s transit system has faced severe challenges in recent years. The Duval Loop has been suspended, and other transit services have struggled due to unreliable federal and state funding. The County’s Conch Connect and transit department were eliminated for similar reasons, leaving a gap in reliable transportation for workers, residents and visitors.
As we explored in last week’s story, Funding Transit Without Raising Local Taxes: A Win for Tourists and Residents,Tourist Development Tax (TDT) funds, collected from visitors, offer a stable, local source to support transit primarily serving tourists. This approach enhances the visitor experience, reduces congestion, and supports the hospitality industry—all without raising local taxes or burdening residents.
What Happened at the January 6 Meeting?
The City Commission discussed the idea but did not make any immediate decisions. Key points included:
- Haskell and Kaufman Lead: Commissioner Haskell emphasized she wasn’t asking for a reallocation of existing funds but looking at future budgets, reminding everyone that tourists pay these taxes, not residents. Commissioner Sam Kaufman expressed strong support and stressed the need for clear documentation of tourist benefit and coordination with the County.
- Calls for Support and Caution: Commissioner Aaron Castillo supported exploring reserve funds and TDC funds as options. Commissioner Veliz said, “Anything we can look at to get more money into transit—I’m for that.” Commissioner Lee urged caution, noting the concept has a long way to go and there are competing interests for TDC money.
- TDC’s Position: Kara Franker, President & CEO of the Tourist Development Council (TDC), sent a letter that morning emphasizing that while she is not opposed in principle, any use of TDT funds must comply with Florida law, be fiscally responsible, and equitable across Monroe County. She called for a countywide, long-term transportation strategy rather than piecemeal action.
- Budget and Funding Discussions: The Commission discussed potential funding sources, including reallocating funds from reserves or future budgets, but no commitments were made.
- Mayor Directs Next Steps: The Mayor directed the City Manager to work with the County and report back, signaling ongoing collaboration.
This discussion reflects cautious optimism but also highlights the need for clear plans and cooperation across jurisdictions to move forward effectively.
Our Take: The Ball Is in Their Court, But It Should Move Faster
The “Their” in this subtitle primarily refers to Monroe County and the Tourist Development Council (TDC), who control the allocation of Tourist Development Tax funds. However, the City of Key West also has a critical role to play. The City must actively insist and collaborate with the County and TDC to ensure timely and decisive action on funding tourist-serving transit. While the responsibility is shared, the urgency demands faster movement from all parties involved.
Kara Franker’s call for a thoughtful, countywide strategy is reasonable and necessary, but it risks delaying much-needed improvements. The transit crisis is immediate, and the Duval Loop is already designed to serve tourists. There is no need to reinvent the wheel or wait years for a comprehensive plan before allocating some funds. Here are two key actions that should happen now:
1. Fund the Loop and Enhance the LKS in the 2027 TDC Budget
We believe the County and TDC could easily allocate a few million dollars from next year’s TDC budget to restart and expand a free Duval Loop by October 1, 2026, and enhance the Lower Keys “Tourist” Shuttle, which naturally serves tourist lodging and destinations along US Route 1 between Marathon and downtown Key West. The Loop needs less than $1.5M annually to run a “free and frequent” circulator. And with another $1.5M added to the Lower Keys “Tourist” Shuttle, one could increase the moribund 90-120 minute current frequencies down to 60 minutes or less. That’s less than 10% of the current TDC marketing program.
This approach would:
- Provide immediate relief to visitors and reduce congestion.
- Demonstrate commitment to sustainable tourism and transit.
- Leave other funding sources available to support resident-serving transit.
And for goodness sake if there’s any leftover money from some source of unused funds, start sooner than October 1.
2. Plan for Transit and Its Funding for the Future
The City of Key West has an adopted 10-Year Plan that is just a little more than one year old. While not as formalized, the County had a long-term transit plan that included 30-minute trunk service along the Overseas Highway from Key Largo to downtown Key West, supplemented by a series of circulator and on-demand services in the villages up and down the Keys. Start with these, figure out how much money they need and what portions can be realistically funded by TDT funds as “tourist-serving” transit. And then figure out how we come up with the balance of funds needed.
The City and County Should Take Action NOW While Planning for the Future
Tourist Development Tax funds are allocated at the County level, so the City of Key West must actively engage Monroe County and the Tourist Development Council (TDC) to take decisive action. These funds represent a vital resource that can be reinvested in visitor-serving transit to boost the tourism economy and improve quality of life for all.
To avoid being caught flat-footed during the summer’s budget session, the County and TDC need to begin their due diligence immediately. This means lining up all necessary legal, fiscal, and procedural steps to allocate approximately $3 million for tourist-serving transit without delay.
At the same time, the City and County must initiate a long-term transit planning process that includes securing more stable funding. While reorganizing existing revenues in the next fiscal year is part of the solution, there may also be opportunities to increase the Tourist Development Tax within the limits allowed by state law. Exploring these options now will ensure a sustainable transit future for the Florida Keys.
Delaying action risks losing momentum and prolonging transit challenges that hurt workers, residents, and businesses alike. Your voice matters—urge local leaders to prioritize immediate funding for visitor-serving transit and to plan strategically for the years ahead.
Together, we can build a more accessible, less congested, and visitor-friendly Keys for everyone. Waiting too long risks procedural delays that could push funding decisions well beyond the next fiscal year.
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Contact your Monroe County Commissioners, TDC Board Members, and contact Key West Mayor and Commissioners
Chris Hamilton is the founder of Friends of Car-Free Key West & Duval Street/Historic Downtown, a local advocacy group championing sustainable mobility and vibrant public spaces. Subscribe to the blog and follow on Facebook, Twitter, and Substack for updates. All stories are cross posted at KONK Life News. Originally from Washington, D.C., Chris spent over two decades leading nationally acclaimed initiatives in transit, biking, walking, and smart growth for Arlington County, VA’s DOT. Since moving to Key West in 2015, he has embraced a car-free lifestyle downtown, dedicating his time to non-profits and community projects. Explore all Streets for People column articles here.