As RTD directors prepare to make sharp reductions in the May transit schedule, some fear ongoing weakness in the economy will force the agency to consider another round of deep cuts in August.
Regional Transportation District director Kent Bagley said he is concerned May’s planned cuts may not adequately reflect the challenges RTD faces.
“Unless things improve, we’ll be looking at this kind of activity again,” Bagley said of the impending cuts.
Plummeting sales-tax revenues have put a huge strain on RTD’s 2009 budget, which now is short about $23 million from earlier forecasts.
Agency directors will vote tonight on cutbacks aimed at saving about $4.5 million this year.
Controversial cuts include a suspension of G line light-rail service between the Nine Mile and Lincoln stations, ending Route U regional bus service between Pine Junction and the Denver Tech Center and canceling Route CC regional bus service that runs in the Coal Creek Canyon corridor.
In assessing cuts, “we should listen to our constituents, but rely on objective criteria” for determining whether there is adequate ridership to support a route, said RTD director Bill James.
RTD identified the $23 million revenue shortfall by plugging in new data showing the agency’s sales and use tax collections will drop about 4.4 percent this year from 2008’s depressed levels.
Before economic conditions worsened considerably late last year, RTD had estimated sales-tax growth this year would be 2.83 percent.
The agency gets the bulk of its revenues from a 1 percent sales and use tax in the eight-county metro area.
To make up for the $23 million gap, RTD has identified areas for savings, including $2 million from eliminating merit and other pay increases for salaried employees and another $1.3 million from a hiring freeze on salaried positions.
The agency also has targeted another $5.8 million in operating cost savings, including about $2.7 million from contracted services such as snow removal and grounds maintenance.
The agency also is trying to wring savings from its fuel purchase program, which got stung last year when RTD locked in a 2009 price for diesel fuel at $3.09 a gallon. RTD is now paying about $1.30 more per gallon than it would be paying on the open market.
Phil Washington, RTD’s assistant general manager for administration, told the board last week that the agency is trying to lower its locked-in price in exchange for stretching the contract through the first half of 2010.
Other savings identified to make up the $23 million:
• Recipients of four FasTracks consulting contracts have agreed to $1.7 million in cuts to their 2009 budgets.
• A cut of about $1 million in utility costs and other miscellaneous expenses.
• A reduction in the agency’s materials and supplies budget to save $300,000.
Several directors have asked for a report on the savings that could be achieved by asking employees to take days off without pay.
Many employers are asking employees to take unpaid furloughs to cut operating costs.
Jeffrey Leib: 303-954-1645 or jleib@denverpost.com
Public comment allowed before RTD directors vote
At today’s meeting of RTD’s board, directors will vote on the proposed changes. The meeting, at RTD’s headquarters at 1600 Blake St. in downtown Denver, begins at 5:30 p.m., and there will be time for public comment before directors vote.
Proposed changes online
To see a full list of RTD’s proposed service changes for May, go to and click on the “May service changes” link.
