Denver RTD adopts $1.2 billion operating budget for 2025
A $1.2 billion budget has been unanimously adopted by the Denver Regional Transportation District (RTD) Board of Directors for 2025. The new operating budget will result in increased levels of service, continued agency hiring efforts for key frontline positions and sustained preventative maintenance projects that launched in 2024.
The 2025 budget will continue Denver RTD’s pursuit of its Strategic Initiatives of People Power, Back to Basics and Welcoming Transit Environment, as well as introduce Customer and Community Connections. These four strategic initiatives are tactical in nature and interwoven into individual employee goals to support the agency’s overall 2021-2026 Strategic Plan. The balanced budget was developed to align with the agency’s strategic plan.
"Over the last year, RTD has redoubled its efforts to maintain its assets in a state of good repair, enhanced employee recruitment and retention initiatives and made significant progress in creating a welcoming transit environment,” said Denver RTD General Manager and CEO Debra A. Johnson. “This budget allows the agency to build on that momentum in the year ahead and respond to the ever-changing transit needs of customers in the Denver metro area.”
Sales and use tax revenue, which comprises more than 70 percent of Denver RTD’s total budget, is expected to grow 4.2 percent in 2025. Fare revenue is also projected to slightly increase to align with ridership projections, as well as account for the agency’s Zero Fare for Youth program. Fares will continue to provide approximately five percent of Denver RTD’s total revenue and the remaining 25 percent of the budget comes from grants and other income sources. Grant revenue appears lower in Denver RTD’s 2025 budget due to the one-time $150 million pass-through grant received in 2024 for the East Colfax Bus Rapid Transit Project.
Denver RTD says it conservatively budgets for projected revenues in accordance with its fiscal policy and only plans for revenue that is reasonably certain to be collected. Overall, the agency notes its revenue is anticipated to keep pace with increases in agency expenditures in 2025. The revenues and expenditures also maintain adequate reserves in support of the agency’s strategic priority of financial Success.
The agency’s operating expense budget in 2025 reflects year-over-year increases in salaries, wages and benefits, materials and supplies and purchased transportation. Salaries and wages are to increase next year as Denver RTD continues its efforts to improve hiring and retention, particularly for vacant frontline positions, as well as the expansion of the Transit Police Department. In the 2025 budget, wages and benefits are to account for 42 percent of the agency’s expenses and reflect 3,637 budgeted positions.
Purchased transportation is also budgeted to increase next year in accordance with bus fixed route contractual increases and RTD’s concessionaire agreement for commuter rail services. Contractual increases in purchased transportation account for inflation and periodic maintenance costs. The periodic increases in payments for purchased transportation will continue through 2027 before being reduced in subsequent years.
