Surging gas prices have RTD considering a 25-cent fare increase on local cash bus service throughout the Denver metro area to begin in 2006.
A penny-a-gallon increase in gas costs RTD $100,000cq, said Cal Marsella, general manager for the Regional Transportation District.
“We are $11 million over budget on fuel this year,” Marsella said Tuesday. “It’s that bad.”
Fares are currently $1.25 for local bus service within travel zones. Regional and express fares, which cross multiple zones, would remain unchanged under the price plan.
The proposed $1.50 fare is on par with other cities nationwide and below the national average, according to RTD statistics.
Riders pay $1.60 in Baltimore, for example, and $2.25 in San Diego. Residents in Dallas and Cleveland pay $1.25.
The RTD fare-increase proposal was introduced Tuesday during a meeting of its board of directors. If the increase is approved, it will go into effect Jan. 1.
Even with the rate hike, RTD will have a shortfall of $8.5 million. RTD’s annual operating budget is approximately $330 million.
“We are still going to come up short,” Marsella said. “We are going to have to manage the rest through the budget process.”
RTD will hold a public hearing on the issue Sept. 20, and the proposal would go to the board of directors for approval Nov. 15.
RTD’s last fare increase was in January 2004, when local cash fares were raised from $1.15.
Marsella said he is often asked why money raised in the FasTracks ballot initiative can’t be used to fund the gas budget.
That money can only be used for FasTracks, he said, and if RTD could use that money, it would be detrimental to the development of the rail system.
“We need to take some timely action, or we are going to have problems with the basic service levels,” Marsella said.
RTD is also proposing that discounted fares for seniors, the disabled, those on Medicare and students go up by 15 cents for local service.
Eco Passes have a 10 percent fare increase under the proposal and could rise even more after RTD collects additional data on those pass holders in 2006.
The Eco Pass program allows companies to buy discounted transit passes for their employeescan pass along part of the cost on to workers.
Dave Ruchman, the board’s first vice chairman, asked if the recent rise in ridership would help with the fuel shortfall.
Marsella said new riders won’t generate enough revenue to compensate, and if fares are raised any higher, RTD runs the risk of losing riders.
Ruchman asked Marsella if the fuel situation is only going to get worse.
“Absolutely,” Marsella said.
Staff writer Felisa Cardona can be reached at 303-820-1219 or fcardona@denverpost.com.
