State Senator Samuel Zurier introduces bills to shore up RIPTA funding

“While the proposed increase in funding isn’t sufficient to close the entire RIPTA budget gap... these two proposals move us toward more predictable and sustainable funding for RIPTA.”

From a Rhode Island General Assembly press release:

Rhode Island State Senator Samuel Zurier (Democrat, District 3, Providence) has introduced legislation to ensure that gas tax revenue assigned to Rhode Island Public Transit Authority (RIPTA) keeps up with inflation.

“Rhode Island has consistently failed to fund RIPTA sufficiently, falling short of meeting the transit needs of many Rhode Islanders and delaying our progress to reduce our State’s greenhouse gas emissions,” said Senator Zurier. “Structural flaws in the laws governing the gas tax are one important cause of this underfunding, which have allowed RIPTA’s share of gas tax revenues to shrink relative to inflation over the last nine years. These bills are designed to make the gas tax a stable funding source for RIPTA going forward.”

The first bill (2025-S 0046) would increase the share of annual gas tax revenue allocated to RIPTA to 30% of the total share. When the gas tax was set at 32.5 cents per gallon, RIPTA was allocated 9.75 cents per gallon, a 30% share. As the gas tax has increased to 38 cents per gallon due to inflation, RIPTA’s share has remained at 9.75 cents per gallon, or about a 26% share.

The second bill (2025-S 0047) would adjust how inflation is counted when adjusting the total gas tax rate. Currently, the Department of Revenue adjusts the gas tax to account for inflation every two years but only considers inflation from the previous year when doing so. This practice means that adjustments to the gas tax do not keep pace with inflation because they ignore the inflation that occurs every other year. If the gas tax had kept pace with the Consumer Price Index for All Urban Consumers (CPI-U), it would currently be 42 cents per gallon instead of 38. Senator Zurier’s bill would change this calculation going forward to include the entire change in CPI-U every two years, assuring that the gas tax rate keeps pace with inflation in the future.

“By undercounting cost of living increases, this interpretation of the inflation adjustment has deprived the State of more than $17 million annually,” said Senator Zurier. “Had RIPTA received 30% of these lost revenues, it would have provided an additional $5 million annually. Together, these bills will ensure that the State’s future collection of this revenue more effectively aligns with the needs of bus passengers and the mandates of the Act on Climate.”

In 2021, the State passed the Act on Climate, committing the State to carbon neutrality by 2050. As about 25% of Rhode Island’s carbon emissions come from cars and trucks, increasing the RIPTA ridership is an important part of meeting this goal.

“The Save RIPTA coalition is grateful to Senator Zurier for his dedication to fighting for a public transportation system that is reliable, accessible, and convenient for all Rhode Islanders,” said Liza Burkin, an organizer of the effort to Save RIPTA. “We look forward to working with the General Assembly to find sustainable, long-term funding solutions to ensure RIPTA can drive our economy forward, reduce carbon emissions, and get people where they need to go.”

“Senator Zurier gets it - he understands the important role that public transit plays in strengthening Rhode Island’s economy, location efficient housing production, environment, and overall competitiveness,” said Scott Wolf, executive director of Grow Smart RI. “While the proposed increase in funding isn’t sufficient to close the entire RIPTA budget gap or to more aggressively implement the Transit Master Plan, these two proposals move us toward more predictable and sustainable funding for RIPTA.”

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As previously reported:

See: January 28, 2025 One of Rhode Island’s best budget conferences happens annually at Mt. Pleasant Library

“One area of concern that has started gaining some attention is cuts to RIPTA,” said Representative David Morales. “We faced a $20 million deficit last year, which meant that RIPTA was already projecting what it would look like to cut service routes, reduce provided services, and lay off drivers. As a result of a lot of community organizing, we got just enough funding to keep RIPTA running. Last year, we were able to make sure that there were no service cuts and that no drivers were laid off.

“This year, our backs are against the wall even further because the deficit has grown to $32 million. The deficit is a result of federal funding no longer being available. Most of RIPTA’s operational funding has come from federal funds. Those funds have not existed over the last two years. It is required that the State fund public transportation, which is a really ‘radical’ idea, but other states do it. The Governor’s last two budget proposals have not done that. Last year, they would not fund RIPTA, leaving it with a $15 million deficit. We were able to resolve the deficit by June.

“This year, the number is larger. We have yet to hear from RIPTA about projecting this deficit because they were ready to go with the service cuts last year. Last year, they were already hosting public meetings to tell people what routes would be discontinued or less frequent. I suspect something similar is going to happen this time around.

“The one hint of hope I have right now is that RIPTA will release its efficiency study in April. Last year, when we gave them the $15 million to remain stable, the Governor proposed to RIPTA. He didn’t propose to other agencies that they conduct an efficiency study and tell us where we can cut without impacting operations. We will see the results in April and see if that changes the deficit by $32 million.”