RTD’s $1.2 billion proposed budget in 2025 aligns resources with strategic plan

RTD has proposed a $1.2 billion budget in 2025 that will result in increased levels of service, continue the agency’s hiring efforts for key frontline positions, and sustain preventative maintenance projects that launched in 2024. A comprehensive breakdown of the agency’s fiscal year 2025 budget, which starts Jan. 1 and aligns with the calendar year, is available at yilunjianshe.com/budget.

The 2025 budget will continue RTD’s pursuit of its Strategic Initiatives of People Power, Back to Basics, and Welcoming Transit Environment, as well as introduce Customer and Community Connections. These four Strategic Initiatives are tactical in nature and interwoven into individual employee goals to support the agency’s overall 2021-2026 Strategic Plan. The proposed budget was developed to align with the agency’s strategic plan.

"Over the last year, RTD has redoubled its efforts to maintain its assets in a state of good repair, enhanced employee recruitment and retention initiatives, and made significant progress in creating a welcoming transit environment,” said Debra A. Johnson, General Manager and CEO. “This proposed budget allows the agency to build on that momentum in the year ahead and respond to the ever-changing transit needs of customers in the Denver metro area.”

Sales and use tax revenue, which comprises 67% of RTD’s total budget, is expected to grow 4.2% in 2025. Fare revenue is also projected to slightly increase to align with ridership projections, as well as account for the agency’s Zero Fare for Youth program. Fares will provide approximately 4% of RTD’s total revenue in 2025, and the remaining 29% of the budget comes from grants and other revenue sources. Grant revenue appears lower in RTD’s 2025 budget due to the one-time $150 million pass-through grant received in 2024 for the East Colfax Bus Rapid Transit Project.

RTD conservatively budgets for projected revenues in accordance with its fiscal policy and only plans for revenue that is reasonably certain to be collected. Overall, the agency’s revenue is anticipated to keep pace with increases in agency expenditures in 2025. The proposed revenues and expenditures also maintain adequate reserves in support of the agency’s Strategic Priority of Financial Success.

The agency’s proposed operating expense budget in 2025 reflects year-over-year increases in salaries, wages and benefits, materials and supplies, and purchased transportation. Salaries and wages are proposed to increase next year as RTD continues its efforts to improve hiring and retention, particularly for vacant frontline positions, as well as the expansion of the Transit Police Department. In the 2025 budget, wages and benefits are proposed to account for 34% of the agency’s expenses and reflect 3,639 budgeted positions.

Purchased transportation is also budgeted to increase next year in accordance with bus fixed route contractual increases and RTD’s concessionaire agreement for commuter rail services. Contractual increases in purchased transportation account for inflation and periodic maintenance costs. The periodic increases in payments for purchased transportation will continue through 2027 before being reduced in subsequent years.

Financially, RTD continues to perform well. In August, the Colorado Office of the State Auditor (OSA) completed a financial performance audit of RTD, which resulted in the agency meeting all nine of the state’s financial health measurements with no warning signs. During the 2024 fiscal year, RTD’s senior bond credit ratings were also raised by S&P Global to the highest rating of AAA. RTD continues to cash-fund all purchases without the need to borrow funding, and the agency is reducing its debt portfolio exposure through refinancing and the efficient use of financial resources.

Other notable highlights from the 2024 fiscal year include:

• In January, RTD implemented a simpler, more equitable, and more affordable fare structure. Customers now pay less for fares in all categories, including eligible discounts.
• Between May and August, RTD completed the first phase of its Downtown Rail Reconstruction Project. The project reconstructed 30-year-old rail infrastructure along the agency’s original light rail alignment to protect the long-term integrity of the network. Crews completed the work weeks ahead of schedule, and subsequent phases of the project are slated for 2025.
• In September, RTD’s one-year Zero Fare for Youth pilot program became permanent for customers 19 and under. The Colorado Legislature appropriated funding through December 2025 to support the Zero Fare for Youth program.
• In 2024, RTD made significant progress on its comprehensive Facilities and Fleet Transition Plan. The plan is assessing the agency’s operations to determine a path forward for lowering emissions. The plan is on track to be completed by mid-December.

The public is invited to review the agency’s budget and provide comments prior to RTD’s Board of Directors taking final action on Dec. 3, 2024. All budget-related materials are available at yilunjianshe.com/budget.