Governor McKee calls for last minute RIPTA plan that includes fare increases

"...including a fare increase aligned with inflation and a shift toward zone-based pricing..."

Minutes before the Rhode Island Public Transit Authority (RIPTA) Board of Directors’ meeting Thursday morning, Governor Daniel McKee sent the following letter. The board decided not to vote on any proposed cuts.

Dear Members of the Board,

I’m writing ahead of today’s Board meeting, where the agency’s current proposal to address its budget shortfall will be reviewed.

This meeting comes after my administration has taken significant steps to shore up RIPTA’s finances and give the agency time to plan for a more sustainable future. Earlier this year, I recommended - and the General Assembly appropriated - an additional $15 million in state funding for RIPTA, bringing total annual state aid to $65 million, a 30% increase. This builds on the $15 million in one-time federal pandemic relief funds my administration provided last year to give RIPTA more time to prepare for the end of its pandemic-related support. I made these investments because I believe in the value of public transit and the critical role it plays on our most important routes, helping Rhode Islanders get to and from work, school, and medical appointments every day.

Supporting public transit is important, as is protecting the public’s trust in how we spend their money.

Short-term funding alone cannot resolve long-standing structural challenges. RIPTA must operate within its means, protect core services like the RIde Program for individuals with disabilities, and use taxpayer dollars responsibly.

With ridership down more than 25% over the past decade and fares unchanged for 15 years, RIPTA’s underperforming services must be realigned to ensure the system’s sustainability. That’s why we required RIPTA to commission a third-party efficiency study to identify high-cost, low-ridership routes, recommend best practices for fare adjustments, and highlight opportunities to improve operations and maximize federal funding. The study highlighted that some of these services are unsustainable, with some routes having costs as high as $40 to $80 per passenger trip. Transit agencies across the country face similar financial pressures and are making comparable changes to realign services and update fare structures.

To put the agency on stronger long-term financial footing, at today’s meeting, I urge the Board to direct the agency and its vendor to develop a new proposal-one that balances new revenue strategies with targeted reductions to low-performing routes.

The current proposal, which relies too heavily on across-the-board reductions to routes, should be rejected in favor of a plan that includes:

• Eliminating or restructuring the lowest-performing routes to better match demand and reduce costs

• Reducing the management and administrative expenses of the Authority

• Maximizing federal funding, including the Job Access and Reverse Commute (JARC) program and indirect cost recovery

• Implementing a fare adjustment, as recommended in the efficiency report, including a fare increase aligned with inflation and a shift toward zone-based pricing, following more than 15 years without a fare change

Pending the development of a new, more balanced proposal inclusive of the points above, we are open to continuing discussions about identifying additional short-term resources for the agency.

As Governor, I have a responsibility to riders and to hear their concerns, but I also have a duty to every taxpayer footing the bill. Before asking Rhode Islanders to contribute more than the $65 million they already provide each year, we must right-size RIPTA, rebuild its financial foundation, and protect the core services that so many rely on.

Sincerely,

Governor McKee