Governor McKee produces a plan to avoid draconian bus service cuts
“These reforms address the multi-year budget deficit at RIPTA without relying on future wide-ranging tax increases for Rhode Islanders.”
Before getting to the press release, I must note a possible contradiction. Governor McKee says that the proposed RIPTA reforms “address the multi-year budget deficit at RIPTA without relying on future wide-ranging tax increases.” I suppose the term “wide-ranging” is out here because a fare increase, which the letter calls “a comprehensive, multi-year fare adjustment plan to ensure sufficient revenue for sustaining service,” is a form of tax increase, the same as the toll you might pay on a road or a bridge. Note that Governor McKee refused to sign the FY2026 budget because of what he considered increased taxes and fees.
Critically, Governor McKee reaffirms his plans to move the bus hub out of Kennedy Plaza, as a giveaway to rich downtown developers. (Though he wouldn’t phrase it that way.) The public is overwhelmingly opposed to this idea, but Governor McKee is pursuing this anyway.
From a press release:
Rhode Island Governor Daniel McKee and Rhode Island Public Transit Authority (RIPTA) CEO Christopher Durand today announced a new, jointly-developed budget framework aimed at closing RIPTA’s operating deficit, beginning to strengthen its long-term financial footing, and preserving essential services for Rhode Islanders who rely on public transit. The new joint proposal achieves these goals without any route eliminations or driver layoffs, while setting the foundation for a stronger, more modern transit system.
In a letter sent to RIPTA’s Board of Directors ahead of its August 28 meeting, the Governor and Durand outlined the proposal, which addresses all of the items raised in the Governor’s August 7 letter to the board: targeted, data-driven service adjustments, new revenue strategies including a fare strategy, and structural reforms aligned with rider demand and efficiency study recommendations.
“This joint proposal charts a responsible path forward — beginning to stabilize RIPTA’s finances while protecting core service for students and working families who count on transit every day,” said Governor McKee. “These reforms address the multi-year budget deficit at RIPTA without relying on future wide-ranging tax increases for Rhode Islanders.”
“This framework secures RIPTA’s immediate future, while positioning us to build the kind of transit system Rhode Island deserves,” said RIPTA CEO Christopher Durand. “I thank the Governor, the General Assembly, and the RIPTA Board of Directors for their support of public transportation. Together, we’re committed to delivering a modern, efficient, and strong transit system that Rhode Islanders can count on today and in the years ahead.”
“RIPTA provides a critical service for our residents, getting them to school, work, and appointments,” said East Providence Mayor Robert DaSilva, President of the Rhode Island League of Cities and Towns. “Understanding the fiscal realities, we are thankful for the investments made by the Governor and the General Assembly this year to restore key services, which will strengthen our communities and the local economy.”
Key components of the new budget framework include:
Preventing elimination of routes to protect core services and implementing fewer, more targeted service reductions informed by demand data. Scaled-back service reductions generally focus on the highest-cost, lowest-performing routes and frequencies to achieve necessary savings while minimizing rider impact and avoiding layoffs.
Increasing advertising revenue and federal funding reimbursements by more than $2.5 million annually, in line with RIPTA’s efficiency study recommendations.
Achieving $2.4 million in additional efficiencies and cost savings through targeted reductions in administrative and management positions and strategic staff reassignments, streamlining operations and strengthening the Authority’s financial management.
Creating a comprehensive, multi-year fare adjustment plan ensures sufficient revenue is available to sustain service in future years. Standard fares have not been adjusted in fifteen years and have not kept pace with inflation, while monthly passes and transfer fares have remained unchanged for nine years.
Providing a one-time $3-million advance of federal funding from the State to RIPTA to support the implementation of the above measures and enable exploration of additional federal programs. The funding will be provided through the Congestion Mitigation and Air Quality Improvement (CMAQ) program. The CMAQ program currently funds a project in the State Transportation Improvement Plan. To keep that project fully funded, the Governor’s revised budget will replace the temporarily advanced funds with a reallocation from RIPTA’s capital budget.
The proposal protects key services:
Continuing the RIde Anywhere program for riders with disabilities without any cuts;
Ensuring routes to CCRI and URI remain in place;
Protecting core services for Providence Public School students;
Maintaining critical service to major employers.
The proposal also includes a commitment to strengthen and modernize public transit by:
Expanding Partnerships: RIPTA will continue leveraging and expanding its employer partnerships to strengthen revenues, expand workforce access, and reinforce transit’s role in economic development. The Wave to Work commuter benefits program is a central element of this, which helps employers provide their employees with convenient, affordable transit options. This program continues to grow, with new partners such as Omni Hotel and Miriam Hospital joining a roster of employers who recognize the value of public transit. This program complements other recent initiatives, like a new service to Amazon and refined Route Qx trips to Electric Boat, illustrating how small, targeted adjustments can maximize resources while meeting employer and employee needs. Additionally, by aligning with major employers and organizations like the Rhode Island Football Club, the Authority is creating opportunities for new riders to experience public transit in ways that meet their daily needs. RIPTA will also seek to expand the U-Pass program to higher education institutions.
Education is not yet participating, and new partnerships need to be built with entities like tourism districts.
We are moving forward with designing and constructing a new state-of-the-art transit center, relocating the central transit hub from Kennedy Plaza to a modern, intermodal facility directly connected to the Providence Train Station. The new center will offer passengers a secure, well-lit, climate-controlled environment with enhanced amenities. Designed to minimize transfers and maximize efficiency, its direct connection to the train station will make travel more convenient and encourage increased ridership. The center will help RIPTA grow ridership, attract new customers, and bolster public transit across the state.
To find service details, click here.
From Speaker K. Joseph Shekarchi:
“When RIPTA was faced with a crisis that impacted the lives of thousands of Rhode Islanders, the General Assembly invested an additional $15 million in the current budget for RIPTA and protected the RIde Anywhere program for riders with disabilities by placing it in state statute. As the House scrutinizes this latest announcement, we will continue to work with advocates and hold the Administration and the RIPTA board accountable to develop a comprehensive plan that will create a better public transit model for Rhode Island.”
We need the millionaires tax. it would be MUCH more useful than a fare increase. And governor should get a clue and fire Alviti.