With fewer people riding public transportation amid the COVID-19 pandemic, RTD said it's forced to face financial realities regarding budget and staffing.
The Regional Transportation District (RTD) said it may reduce its workforce by up to 30 percent, including about 635 part-time and full-time positions, to combat significant financial shortfalls anticipated in 2021 and beyond. The budget crisis is a result of decreased ridership amid the COVID-19 pandemic as large numbers of people work from home, and events and gatherings are canceled.
RTD Chief Executive Officer and General Manager Paul Ballard told employees in a memo earlier this week that RTD is expecting a $166 million budget shortfall next year. That figure is likely to increase beyond 2021, he said.
Ridership is at about 40 percent of its pre-COVID level, RTD said. Service is running at about 60 percent of pre-pandemic levels, and the agency does not expect service levels and ridership to rebound for some time.
“RTD, like much of the world, is having to face the reality of our times by addressing the financial impact of the pandemic,” said Ballard. “These are difficult times requiring difficult decisions, but we will work through this and stay committed to keeping our employee family and the public informed with the facts as they evolve.”
RTD faces a $166 million budget shortfall and plans to notify employees of likely cuts soon https://t.co/DRF9ezmvp7
— The Denver Post (@denverpost) September 9, 2020
RTD received funding from the Coronavirus Aid, Relief and Economic Security (CARES) Act, which allowed it to maintain its pre-pandemic staffing levels as the pandemic took hold in the spring and summer months. That funding, however, is expected to be depleted by the end of the year.
In addition to staff reductions, RTD said it will eliminate vacant positions as it rightsizes its staffing level to meet reduced demand.
RTD also is considering budget reductions for 2021, including deferring $114 million in capital and maintenance projects, forgoing pay increases for salaried employees, and implementing tiered furloughs of up to 18 days for the agency's highest income earners. The RTD Board of Directors will hold a study session on September 15 to discuss the agency's 2021 budget.
RTD has implemented a variety of measures to ease public apprehension about riding public transportation amid the pandemic, including cleaning and sanitizing vehicles daily, requiring operators and riders to wear masks, staging buses to promote social distancing, and encouraging mobile ticketing to reduce touch points.
