RIPTA to consider spending cuts, layoffs, fare hikes. Here's why

Yahoo

09-07-2025

PROVIDENCE – Bus fares are set to rise throughout the Ocean State and routes scaled back − including termination of the South County Beach Bus − as the Rhode Island Public Transit Authority cuts spending to close a projected $18 million budget gap.
The exact size of the fare hike and details on which routes will be axed or see frequency reduced, is expected to be announced in July.
In anticipation of the announcement, RIPTA has announced a series of nine legally-required public hearings starting July 28 where riders throughout the state can share their thoughts about the changes.
"RIPTA's primary source of operating funds, the state gas tax, has failed to keep pace with inflation, making it inadequate to sustain a quality transit system and contributing to the agency's budget deficit,' RIPTA CEO Christopher Durand said in a Thursday, June 26 news release. 'We've worked diligently to manage our operations with limited resources, and an independent efficiency study has confirmed what we already knew: there are no hidden savings left to be found. At this point, in order to close the budget gap, we must reluctantly consider reducing service, increasing fares and laying off our workforce. Without new revenue, we simply have no other choice.'
Riders should anticipate the "elimination of routes or route segments, decreased service frequency, reduced service span, and reduced or eliminated weekend service, the news release said. "The reductions would include the elimination of South County Express Beach Bus service."
A consultant's "efficiency study" of how the statewide bus system can operate without federal pandemic funding is now expected to be released in "early to mid July," according to RIPTA spokesperson Cristy Raposo Perry.
Cuts became inevitable when the General Assembly passed a state budget June 20 that provided RIPTA an extra $15 million next year through an increase in the state gas tax, but still left the agency facing an $18 million hole.
At a June 26 meeting of the RIPTA Board of Directors, board members braced for bad news.
How critical are RIPTA's money woes?
Bad enough that after discussing the budget, the Board of Directors opted to go without insurance next year to protect the agency from catastrophic medical claims by employees.
Called stop-loss insurance, these policies are used by employers who self-insure workers to guard against a sudden spike of expensive, unexpected claims.
In most years, including each of the last five RIPTA has had a policy, claims exceeding the $400,000 threshold where the stop-loss policy kicks in have cost the agency less than its premiums. This past year, for example, the insurance only covered $100,000 in claims.
The policy for next year would have cost $480,000 in premiums and fees.
So, facing layoffs and route reductions that could exacerbate ridership losses, the board decided to roll the dice and go uninsured starting in July.
"Maybe this is the year to go naked on this?" board member Normand Benoit suggested.
Durand said the $480,000 saved by not buying a policy should be enough to save five jobs.
Of course, that's unless there's a bad accident or a few people get really sick. RIPTA began buying stop-loss insurance after getting socked with $1.1 million claim in fiscal 2017-2018.
"This will be the one opportunity I can think of off the top of my head to save some significant money," Benoit said. "Yes, we take on some additional risk. We're not going to know what the end result of this decision is until a year later."
The rest of the board agreed, and the insurance policy was tabled.
Like most mass transit agencies across the country, RIPTA saw ridership plunge during the COVID pandemic.
Some of those bus passengers returned in recent years, but not all, and federal pandemic aid has now run out.
Through May, RIPTA ridership was 300,000 people short of where it was at the same period in 2024, suggesting that ridership may have plateaued despite far fewer canceled bus trips than a year ago. The reduction in canceled trips is the result of a driver recruitment effort and pay raises that cured a persistent shortage.
The budget shortfall could reverse some of those gains.
Sections of the consultant efficiency study that have been released project that RIPTA might need to cut as much as 20% of its service and 90 employees.
To try to find new riders and revenue, Durand said RIPTA is exploring partnerships with major employers, such as a deal with Amazon to serve its Johnston distribution center.
RIPTA is in talks with Ocean State Job Lot to serve its headquarters in the Quonset Business Park in North Kingstown.
This article originally appeared on The Providence Journal: Cash-strapped RIPTA awaits efficiency study to plan best route ahead