The state of RTD — progress and challenges
As the RTD Board of Directors enters a new year, we take the opportunity to look back on last year’s successes and to survey challenges and opportunities ahead.
In 2023, RTD lowered fares, launched a Zero Fare for Youth pilot program and held a successful Zero Fare for Better Air initiative. The agency also took steps to work more closely with local governments, establishing regional service councils and a partnership program to support local mobility projects. On Jan. 1, RTD ushered in a new fare structure, and for the first time in the agency’s history, lowered all fares and eliminated complicated fare zones. Enormous credit goes to RTD’S dedicated employees, capably led by General Manager and CEO Debra A. Johnson.
When operating a bus, it is paramount to look at the road ahead, and RTD’S Board and staff are bringing that same forward-looking focus to 2024. Customers, stakeholders and constituents are calling for a mass transportation system that delivers the highest level of service possible. The calls have been heard, and success requires attracting and retaining employees, ensuring long-term financial stability, tackling deferred maintenance projects, and reducing greenhouse gas emissions.
It takes a large workforce of nearly 3,000 employees to provide RTD’S services. Staff shortages continue to plague the agency, and RTD is making progress through robust recruitment efforts backed by signing bonuses and increased pay. In 2023, the board also updated its Code of Conduct to support a welcoming, secure transit environment for employees and customers. In 2024, RTD is hyperfocused on retaining employees, and ensuring their well-being and personal security.
Despite financial challenges facing many U.S. transit agencies, RTD maintains a strong nearterm outlook thanks to recent focus on stabilizing its financial position. Last year, refinancing Fastracks debt further improved stability, earning an AAA bond rating from S&P Global. Yet, RTD’S primary revenue source is a 1% sales and use tax, making up approximately 75% of our budget and subject to volatility and impending TABOR limits. We’re actively researching wellresourced transit agencies and investigating possible diverse revenue sources and strategies available to RTD and Colorado to offset these limitations and ensure financial resilience.
RTD is committed to maintaining a state of good repair and safeguarding our system. In the year ahead, the agency will embark on a series of deferred maintenance projects that will be disruptive. RTD will work to minimize the impact by enhancing communications and adjusting schedules.
In the spring, a project to replace existing light rail track will commence in downtown Denver, as will an ongoing project to reinforce retaining wall caps along I-25. Both projects, and others like them, come at a cost of convenience but are essential to ensure the community’s investments remain intact.
As our region focuses on climate, air quality, and reducing greenhouse gas emissions, RTD is taking a lead role. With state support, last year’s Zero Fare for Better Air initiative yielded an increase in ridership and reduced groundlevel ozone.
A bill has been introduced to make it permanent. In 2023, the agency launched a process to develop a comprehensive low/no-emissions facilities and fleet transition plan, which will serve as a roadmap for future transit service delivery. RTD is collaborating with the state, Front Range Passenger Rail District and CDOT to identify a path to bring passenger rail to Colorado, while also conducting its Northwest Rail Peak Service Feasibility Study.
In the year ahead, the state will be focused on air quality, land use, and transit-oriented development. RTD is committed to delivering affordable and effective transit, optimally managing the resources with which we are entrusted.
We look forward to collaborating with the governor, Legislature and other stakeholders to continue Zero Fare for Youth and Zero Fare for Better Air, to pursue passenger rail and enhance transit.
To build a stronger transit future, we need help. We call on our community, as well as our partners, to actively join us in supporting RTD’S dedicated employees. We seek support in diversifying RTD’S financial foundations to guarantee a resilient transit future. We ask for understanding as we proactively address maintenance projects and safeguard RTD’S system. And, of course, we invite customers to join us on board to ride towards a sustainable, cleanair future.