Loss of ridership fares, increased costs put RIPTA $18M in the red for FY21 before CARES Act funds

FEWER RIDERS and higher costs put RIPTA $18 million in the red in fiscal 2021, but CARES Act funding allowed the agency to balance its budget. / PBN FILE PHOTO/ ELIZABETH GRAHAM

PROVIDENCE – Dramatic drops in ridership combined with new costs for technology, cleaning and personal protective equipment are anticipated to put the R.I. Public Transit Authority $18 million in the hole in fiscal 2021, according to RIPTA CEO Scott Avedisian.

Luckily, the $91.2 million in CARES Act funding the state transit agency received – separate from the $1.25 billion allocation for the state – should fill the entirety of the projected revenue loss, Avedisian said during a RIPTA board of directors meeting on Wednesday.

Long-term, however, RIPTA will have to come up with new ways to recover ridership and increase revenue amid decreases in state and federal subsidies. Calendar year 2020 saw a 44.7% slash in ridership – just 8.9 million riders across the agency’s 52 bus routes, compared to 16.1 billion riders each in 2019 and 2018, according to information shared by Avedisian. Drops in ridership corresponded to less revenue through fares, although the total income derived through fares was not provided.

RIPTA ridership dropped 44% in 2020 compared to the two prior years, with corresponding cuts to revenue. COURTESY RHODE ISLAND PUBLIC TRANSIT AUTHORITY

Other revenue streams have also declined, including state subsidies via fees paid at the R.I. Department of Motor Vehicles and the gas tax, the latter of which will continue to lose roughly $4.4 million a year in revenue according to R.I. Department of Revenue projections. 

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With long-term changes in travel patterns, including what is expected to be a permanent shift to remote work for many, means RIPTA is facing a projected $70 to $74 million in total loss through fiscal 2025.

Still, Avedisian pointed to several ongoing projects and initiatives aimed at reviving ridership and generating new income. Among them is the Downtown Transit Connector, which launched prior to the pandemic, and has seen ridership rebound faster than other routes amid the still-surging virus. New, 2019 routes connecting Providence and Pawtucket to the Quonset Business Park, and Newport to Providence and Fall River are also expected to improve ridership through new service.

Technology advancements will also play a critical role, including the newly launched Wave app that lets riders pay or purchase tickets through their phones. A previously announced pilot program with Central Falls will use “geofencing” technology to promote use of public transit among city riders and allow them to bypass fees when boarding a bus using the Wave app within city limits.

The fiscal 2021 capital budget includes $48.5 million for major projects, including a new Pawtucket/Central Falls transit hub, the East Side tunnel and renovations to RIPTA’s John H. Chafee Maintenance Facility. Progress on all three projects has continued through the pandemic, Avedisian said.

Nancy Lavin is a PBN staff writer. You may reach her at Lavin@PBN.com.

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