Testimony in SUPPORT of HJR-7774 to appropriate $78 million for the Rhode Island Public Transit Authority (RIPTA)
House Committee on Finance
April 10, 2024
Alan Krinsky, Director of Research & Fiscal Policy
The Economic Progress Institute supports Representative Alzate’s HJR-7774 to appropriate $78 million for FY2025 for the Rhode Island Public Transit Authority (RIPTA). The funding for RIPTA in the proposed FY2025 budget bill, even including the additional $10 million of American Rescue Plan Act (ARPA) funding, falls 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. Such 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 House 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, including Representative Alzate’s funding resolution HJR-7774 to appropriate $78 million to RIPTA.