Testimony concerning proposed FY2025 funding for the Rhode Island Public Transit Authority (RIPTA): H-7225
Senate Committee on Finance
April 9, 2024
Alan Krinsky, Director of Research & Fiscal Policy
The Economic Progress Institute supports, in a qualified way, H-7225’s proposed FY2025 funding for the Rhode Island Public Transit Authority (RIPTA). However, although we support all of the funding proposed, including the $10 million of American Rescue Plan Act (ARPA) funding, the proposed expenditures fall far short of the need.
At the very least, the projected RIPTA budget shortfall stands at $18.1 million, which is $8.1 million above the proposed extra $10 million in ARPA funds. Furthermore, we need additional investments to replace retiring workers in the years ahead. Additional investments in RIPTA will be better for our environment and economy, in part by making it easier for Rhode Islanders to access the jobs we are training and retraining them for through our workforce development programs.
I also urge the committee members to consider public transit funding in the broader context of all transportation funding.
As the members of the Senate Finance Committee know, the car-tax phase-out was not a one-time event, and the proposed FY2025 budget includes $234.7 million to make local governments whole from the loss of revenue from the phase-out. This is an annual and indefinite appropriation, and the entirety of the appropriation subsidizes car owners so they need not pay the tax.
The phase-out and the annual appropriation do not provide the benefit of tax relief to all Rhode Islanders. It provides no relief for the approximately 10% of Rhode Island households without any available vehicles. For rental-occupied households, this rate is 21.5%, according to United States Census Bureau data.
If we are subsidizing car owners with $234.7 million from General Revenue funds each year, we should think about doing more to subsidize non-car owners, as well as car owners who would prefer to use public transportation more often than they do. The amount provided for the trial period for free R-Line service was welcome but a small subsidy in comparison.
We urge the members of the committee to endorse increased funding of RIPTA, such as Representative Karen Alzate’s funding resolution HJR-7774 to appropriate $78 million for RIPTA.