CARES Act impact on Washoe County Transit and RTC

The Regional Transportation Commission of Washoe County (RTC) will receive $20.8 million in federal funding from the Coronavirus Aid, Relief and Economic Security (CARES) Act, which was signed into law in March.

RTC’s public transit program is reliant on passenger fares and sales tax. Passenger ridership is down by 63 percent, which means the RTC is collecting significantly fewer fares. With tourism shut down and retail businesses closed, it doesn’t take much imagination to conclude that sales taxes will be drastically reduced in the near term or perhaps longer, says RTC.

Taken as a whole, the revenues that operate the local transit system have been, and likely will continue to be, substantially reduced. RTC says without adequate revenues to support local transit the only option available is to reduce service. A reduction in service can impact the most challenged members of the community by eliminating what is often their only means of transportation. It would reduce access to essential jobs and services. Additionally, it would mean the loss of trained and qualified bus drivers, a critical part of the essential work force.

RTC says a financial crisis for the public transit system may be avoided thanks to the agency receiving $20.8 million from the CARES Act to offset revenue declines and allow RTC to continue service at current levels.

RTC will use the funding for the following:

• Avoid service cuts;
• Continue full transit service and boost service where needed to promote social distancing;
• Move forward with service upgrades that are planned for May;
• Deliver needed meals and prescriptions to ACCESS customers in partnership with Washoe County Senior Services and the Food Bank of Northern Nevada; and
• Fund personal protective equipment for transit personnel.

RTC says the CARES Act is not a revenue windfall that should be dispersed in new and different ways; it is foundational funding that is critically necessary to maintain the current transit system.