RTD brings a $1.34 billion proposed 2027 budget to its board, with the deficit down to $148 million

The Regional Transportation District took its proposed 2027 budget to the Board of Directors' Finance and Planning Committee on Tuesday night, Oct. 13, presenting a $1.34 billion expense plan built around cost cutting, reduced staffing and continued work on a structural deficit the agency has been shrinking for two years.

The headline number is the deficit itself. RTD says strategic cost optimization work since 2025 has reduced the shortfall from $282 million in 2024 to $148 million in the proposed 2027 budget, a 47 percent improvement. Denver7's coverage of the presentation on Tuesday carried the same framing: an agency that has cut costs and still faces a $148 million gap.

The agency attributes the structural deficit to operating costs rising faster than revenue. The proposed budget continues the response with reduced staffing levels following RTD's 2026 restructuring, elimination of vacant positions, and efficiencies in materials and other expenses. Total appropriations of $2.29 billion would cover operating expenses, state of good repair projects and debt service.

General Manager and CEO Debra A. Johnson said in the agency's release that "the 2027 Proposed Budget reflects substantial progress made in 2026." She added that the agency must weigh both cost optimization and options to diversify its revenues, and described the plan as a course that reflects a commitment to stability and long-term strength.

On the revenue side, RTD projects $1.19 billion for 2027, up 1.9 percent from the 2026 amended budget, excluding East Colfax Bus Rapid Transit funds for which the agency is the federal recipient on behalf of the City and County of Denver. The one percent sales and use tax across the metro area remains the backbone: forecast at $940 million, or 79 percent of projected revenue, based on a September 2026 forecast from the Business Research Division of the University of Colorado's Leeds School of Business. Fare revenue is expected to reach $66 million, up $2 million from the 2026 amended budget, while grant and other revenue excluding East Colfax BRT totals $185 million, down 10.8 percent in part because of the timing of federal formula fund drawdowns.

Capital spending of $615 million includes a $550 million carryforward from prior years, much of it behind the Downtown Rail Reconstruction Project and other work in the agency's Transit Asset Management Plan. Operating expenses are expected to decrease overall, with salaries and benefits up $10 million, or 2.5 percent, on inflationary pressure, materials and supplies down 7.8 percent to $63 million, outside services at $136 million before East Colfax BRT carryforward expenses, and insurance up 7.2 percent to $19 million. RTD anticipates a $148 million decrease in net position for 2027, the declining structural deficit stated plainly.

One offset arrived last month. The Clean Transit Enterprise board voted on Sept. 29 to award RTD $44 million in Local Transit Operations grant funding, which the agency says supports more frequent buses and trains, longer service hours and new or expanded routes across the region.

The proposal is not final. The proposed budget is posted on RTD's website, and customers and stakeholders can submit feedback through Dec. 1. The board will hold a public hearing at 5:30 p.m. on Dec. 1 and then consider adoption. If adopted, the budget would run from Jan. 1 through Dec. 31, 2027.