Train and bus riders in metro Denver early next year will pay less to board — whether it’s for a one-time fare or a monthly pass — under sweeping changes approved Tuesday night by the board of the Regional Transportation District.
The across-the-board changes to the agency’s fare structure mark a rare occurrence in RTD’s history: a price cut for transit riders.
Starting early next year, RTD’s standard fare will be $2.75. That simplified base fare will combine two of its current fare tiers, local ($3) and regional ($5.25). A day pass will cost $5.50. But trips to and from Denver International Airport, including on the A-Line train, will still be charged on a separate tier that costs $10, down from $10.50.
Monthly passes will decrease from the current $114 (for local service) and $200 (for regional or airport service) to a consolidated, single-price $88 pass. Fare reductions will apply to RTD’s other services, including Access-a-Ride vehicles, and to its discount programs, too — with a monthly pass available for just $27 for eligible riders.
“This is historic — this is a huge leap in the right direction,” RTD Director Paul Rosenthal said before joining in a 15-0 vote approving the fare restructuring. He cited the price reduction for monthly passes as the “most dramatic” because of their impact on regular riders.
The fare restructuring, two years in the making, also has been hailed by transit advocates. The recommendations resulted from a detailed study and community outreach that were motivated by RTD’s fares being among the most costly in the nation by some measures.
RTD’s services are now free during a two-month “Zero Fare for Better Air” program, but fares will return in September.
While most riders will see a cut in costs in the first few months of 2024 — RTD officials say they’re still working out the exact timing of the fare changes — one component will take effect sooner, on the heels of the free-fare summer program.
Starting Sept. 1, RTD will allow riders 19 and younger, who currently receive a 70% youth discount, to ride for free during a one-year pilot. That new program could be extended in late 2024 if the agency can line up partners to help cover the $5 million annual cost.
When the overall fare restructuring takes effect early next year, RTD will simplify discount fares for riders ages 65 and older, those who have disabilities, Medicare recipients and those who meet low-income qualifications — with all paying 50% of normal standard fares for all regular buses and trains, including to the airport. The discount fare will be $1.35, or $2.70 for a day pass, with a discounted monthly pass costing $27.
The eligibility threshold for RTD’s “LiVE” low-income fare program will increase from 185% of the federal poverty level to 250%, amounting to a household income of $75,000 a year for a family of four.
RTD general manager and CEO Debra Johnson, who was hired in late 2020, initiated the fare study in 2021.
“With the Board of Directors’ approval of this new fare structure, RTD is removing barriers to transit access and reconciling longstanding concerns from customers and the community regarding the high cost and complexity of fares currently in place,” she said in a news release issued after the vote.
The agency relies mostly on dedicated sales taxes to pay for its operations, but state lawmakers in recent years have repealed its minimum farebox recovery ratio, freeing RTD to explore initiatives that might reduce fare revenue.
With ridership still running about 60% of pre-pandemic levels, only about 6% of the agency’s overall budget now comes from fares, according to agency officials.
RTD’s latest financial forecast included about $77 million in fare revenue next year with no changes to the fare structure. But with the changes approved Tuesday, RTD expects fare income to fall by 17% to 21%, while the free youth pilot likely will draw more riders.
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