PROVIDENCE – The R.I. Public Transit Authority will see its projected funding gap addressed under the proposed fiscal year 2027 state budget, resolving a shortfall the agency had previously estimated at roughly $14 million and helping avert additional service reductions or cost pressures.
On Monday, RIPTA CEO Christopher Durand said he was “grateful to Gov. Daniel J. McKee, House Speaker Christopher R. Blazejewski, Senate President Valarie Lawson and all members of the General Assembly for ensuring RIPTA’s FY 2027 budget gap is addressed.”
RIPTA spokesperson Cristy Raposo Perry noted the proposed $14.3 million allocation exceeds the agency’s operating request by about $500,000. While the funding will not fully restore service, she said it will allow RIPTA to continue hiring bus operators as employees retire and help maintain service levels.
The agency had warned late last year that it was still facing a significant deficit heading into fiscal 2027, despite earlier state aid and internal savings efforts, and had said it expected the remaining gap would need to be resolved through the state budget process.
Durand said the funding reflects the importance of public transit to Rhode Island’s economy and workforce, noting that more than 800 employees provide service to hundreds of thousands of riders traveling to work, school and medical appointments.
He specifically highlighted RIPTA’s role supporting major employers including Miriam Hospital, General Dynamics Electric Boat, the Naval Undersea Warfare Center and Amazon, saying those connections help link transit service to economic activity across the state.
In 2022, RIPTA introduced Wave to Work, a program offering business owners the opportunity to partially or fully subsidize bus passes for employees. Eighteen companies have signed on so far, including Brown University Health, Amica Mutual Insurance Co., engineering firm Vanasse Hangen Brustlin Inc., and manufacturers Greystone Inc. and WaterRower Inc.
In April, The R.I. Public Transit Authority expanded its Flex On Demand pilot service to include northern Aquidneck Island.
The expanded area in the 231 Flex Zone, which serves Newport, Middletown and Portsmouth, includes major employers like Raytheon and the Naval Undersea Warfare Center, as well as residential properties such as West House.
The agency had previously undertaken service reductions and cost-cutting measures as it worked to narrow its deficit and has said longer-term funding stability is needed to restore and maintain service levels.
Beyond partnerships with specific businesses, RIPTA also offers express/commuter routes “tailored specifically to workplace-related transit,” the agency said in its 2019 Master Plan.
Most of those routes, such as ones to Amica, make just a couple of stops per day. The combined express routes make about 2,700 daily trips, according to RIPTA.
A route specific to Johnston’s Amazon distribution center – a massive warehouse that employs about 1,500 people – serves more than 30 passengers daily, Durand says. He considers the express route a significant success.
The agency has long faced recurring financial shortfalls tied to structural funding gaps, as costs have outpaced dedicated revenue sources. Federal COVID-19 relief temporarily masked the imbalance, but that aid has since expired, leaving deeper fiscal pressure.
Last year, RIPTA faced a projected $31.5 million deficit for fiscal 2026, later narrowed through funding changes and cost-cutting measures, though a remaining gap of roughly $10 million still required state support.
Durand said the fiscal 2027 funding underscores the broader role of transit in supporting the state’s economy and daily mobility.
“When Rhode Island invests in public transit, it is investing in the success of students, residents and businesses,” said Durand.
RIPTA previously implemented service reductions affecting lower-ridership routes and fare increases while also boosting revenue and cutting costs.
Durand said the agency will continue efforts to improve service and expand flexible options such as Flex On Demand.
The budget remains subject to final approval by the General Assembly.
Matthew McNulty is a PBN staff writer. He can be reached at McNulty@PBN.com or on X at @MattMcNultyNYC.
