A Budget Crisis Puts Denver’s Public Transit at a Crossroads
Denver-area transit riders are bracing for potential changes as RTD considers cutting bus and train services by 20% by next year to reduce spending and close a budget gap. The proposal has sent shockwaves through the region, raising urgent questions about who will be left behind — and whether Denver can sustain its urban mobility and climate ambitions with a dramatically smaller transit network.
The Numbers Behind the Crisis
The RTD board of directors heard a recommendation from RTD staff to cut bus and rail service by 20% as part of a plan to close a roughly $200 million structural deficit. A 20% service cut would reduce overall spending by about $62 million, helping balance RTD’s $1.5 billion annual budget.
During the board meeting, RTD staff said it needs to close a $215 million budget deficit through non-service reductions, service changes, and revenue growth. Staff members said they have already identified around $84 million in cuts for non-service areas, like contract modifications, department realignments, and vacancy eliminations. But even those savings aren’t enough to close the gap without hitting service directly.
Without an anticipated $40 million state Clean Transit Enterprise grant that RTD must compete for and is not guaranteed, the total cuts could reach 36%. That worst-case scenario has alarmed riders, advocates, and board members alike.
A Ridership and Revenue Spiral
The financial crisis doesn’t exist in a vacuum. RTD’s ridership troubles have been building for years. Ridership grew by only 0.1% — from 65.17 million in 2023 to 65.23 million in 2024 — and the low increase may be due to ongoing issues, such as rail maintenance creating slower zones and security problems. Ridership is also still significantly lower — by 38% — compared to pre-pandemic levels.
The budget deficit is largely attributed to lower tax revenue and increased repair costs to service lines, meaning revenues are going down while expenditures are going up. Just four years ago, RTD was bringing in $154 million in fare revenue; that figure has now dropped to about $57 million — a loss of roughly $100 million.
Who Gets Hit Hardest?
Service cuts of this magnitude would not be felt equally. Low-income riders, essential workers, people with disabilities, and those without access to a personal vehicle depend on RTD’s network daily. Low ridership often means less revenue for transit operators due to a loss of fares, which in turn can lead to a reduction in employment, services, routes and quality — and thus further drops in usage, creating a downward spiral.
Directors haven’t yet decided which routes to cut. As one director put it: “It’s like signing your own death warrant.” Communities on the periphery of the metro area — already underserved — risk losing connections to jobs, healthcare, and education entirely.
What the Board Is Considering Instead
Not everyone on the board is ready to accept deep service cuts. Director Karen Benker has proposed fare increases to raise revenue, furlough days for managers, ending overtime pay for bus and train operators, corporate sponsorships, debt refinancing, and a tougher crackdown on fare evasion by installing turnstiles at Denver International Airport.
RTD managers also recommended that directors pursue a ballot measure in 2028 to ask voters for funding, warning that the board must make decisions by the end of May to avoid hurting the development of a balanced 2027 budget. However, board chair O’Keefe noted: “I believe we still have work to do to rebuild that trust before we can go out and ask taxpayers to put in more money.”
How Other Cities Have Navigated Similar Crises
Denver is far from alone. In Chicago, the expiration of federal pandemic relief funds is projected to leave the transit system facing a budget shortfall of $771 million, which would result in 40% service cuts. Philadelphia’s SEPTA is similarly facing service reductions as a result of rising operational costs and the end of federal COVID-19 relief funding, and has already instituted austerity measures such as a hiring freeze and shedding administrators. These cases underscore that the RTD crisis is part of a national pattern, not a local anomaly.
The Bigger Picture: Mobility, Equity, and Climate
The stakes extend well beyond daily commutes. Buses and trains can reduce greenhouse gas emissions by up to two-thirds per passenger per kilometer compared to private vehicles, and the UN’s latest climate action report says that shifting more trips to public transit is “essential” to curbing climate change. Cutting 20% — or potentially 36% — of RTD’s service would deal a significant blow to Colorado’s climate commitments and push more drivers onto already congested highways.
Board members have emphasized the need to get ridership numbers higher and prove RTD’s value to customers, saying: “We want you to come back and ride RTD.” Whether Denver’s leaders can find that balance — stabilizing finances without gutting the very service that makes transit worth riding — will define the future of mobility in the Mile High City.
