GRTC is facing a possible financial cliff
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Greater Richmond Transit Co. is facing a nearly $40 million budget shortfall beginning in 2030.
Why it matters: Richmond's only public transit provider could have to cut service or delay expansion plans if it doesn't turn around its financial situation.
State of play: GRTC's "potential financial cliff," as the agency describes it, was disclosed in documents shared at its Sept. 30 board retreat, and first reported by the Times-Dispatch.
- The shortfall is driven largely by the expiration of multiple short-term grants, the exhaustion of reserve funds as the grants run out and rising costs, especially labor, per the documents.
- The result: GRTC — which in 2020 became one of the first transit providers in the nation to adopt a zero-fare program — has to cut costs or bring in more revenue (or both), or it'll be short $39.5 million.
Stunning stat: GRTC's fixed-route costs are up 72% since 2018.
Zoom in: The potential solutions outlined include:
- Cutting some fixed routes.
- Cutting or eliminating CARE Plus, which provides transportation for people with disabilities.
- Requiring local government contributions to cover new routes or specialized services, like CARE Plus.
- Eliminating some planned expansions.
- Lobbying for new taxes — for example, on ridesharing services such as Uber and Lyft — that could benefit GRTC.
- Increasing the amount local governments, including Richmond's and Chesterfield's, contribute to the bus system.
The intrigue: Getting rid of zero fare isn't suggested as a possible solution, but the transit company announced earlier this year it would start selling ads at bus stops to offset the program's cost.
Between the lines: Aside from the looming financial cliff and GRTC's increased operating costs, it's been a banner year for Richmond bus service, per the board docs. Compared with 2018, GRTC says:
- Ridership is up 47%.
- Routes and hours served are up 25%.
- Staffer productivity is up 17%.
What they're saying: "GRTC is now working proactively to ensure sustainable funding. The funding gap reflects a broader regional and national trend," spokesperson Ashley Potter told WRIC, "with transit agencies from Hampton Roads and Northern Virginia to Philadelphia and Chicago navigating similar budget challenges for years."