In total, legislators have or plan to introduce seven bills aimed at funding RIPTA. One bill, if passed, would eliminate RIPTA’s deficit for the year left by Gov. Dan McKee’s proposed budget. Some of the bills would add surcharges and taxes to Lyft and Uber rides as well as gas.
State Rep. David Morales was the primary sponsor of one of those bills and presented them to an enthused public and colleagues in a Save RIPTA press conference Thursday.
“I do have to admit, I never thought a complex tax code would get people so fired up, but I love it!” said Morales.
Later, while state Sen. Jacob Bissaillon was presenting his bill to require most companies in Rhode Island that have on-site parking to also offer their employees free bus passes if a stop is nearby, he apologized for being tired after an early start to his day. He said he wished he had had some of Morales’ energy.
“And another thing that I’m tired of is year after year of funding public transit with stop-gap measures,” said Bissaillon.
RIPTA has faced funding difficulties at least since 2002, according to a 2023 presentation by RIPTA officials. Last year, McKee’s proposed budget left RIPTA with an $18 million hole to fill. The agency was saved by $10 million in federal funding and allocations from the General Assembly. This year, RIPTA stands to be in the hole by $32.6 million.
Transit advocates also point out that RIPTA spends less than $25 dollars per resident on public transit each year, while Massachusetts spends over $200 per person annually and Connecticut spends between $50-$100.
“We are here to say that we need to grow this agency, not shrink it,” said Providence Streets Coalition President Liza Burkin.
Below are the highlights of the RIPTA legislative package:
$32.6 Million Budget Allocation (SB-342)
Fills in RIPTA’s Fiscal Year 2026 operating deficit
Rideshare Sales Tax Reallocation (HB-5405)
Sends the current 7% rideshare sales tax, an estimated annual revenue of $10-$15 million, to RIPTA’s budget.
Commuter Transportation Benefits Act (HB-5304)
Would require companies within ¾ of a mile of a bus stop that offers employees free on-site parking to also offer them free bus passes.
Transit Master Plan Bond Referendum (HB-5470)
Puts forward to the voters a $100 million bond that would implement capital improvements as outlined in the Transit Master Plan.
Motor Fuel Tax – Re-allocation (HB-5467)
This would increase the annual gas tax revenue sent to RIPTA from about 26% of the current share to 30% of the overall share.
Motor Fuel Tax – Inflation (HB-5468)
Would change the way the tax is measured against inflation by using an inflation rate from two years prior rather than the year prior as it is currently.
Rideshare surcharge (SB-92)
Would introduce a $0.75 cent surcharge on all rideshare rides. Half of that revenue would then be sent to street infrastructure improvement projects and the other half would go to RIPTA.
This story was reported by The Public’s Radio.
