RTD to present 2027 Proposed Budget to Board of Directors’ Finance and Planning Committee
The agency’s 2027 Proposed Budget reflects disciplined financial management, achieving a 47% reduction in the deficit since 2024 through operational efficiency and strategic investments
DENVER (Oct. 13, 2026) –– The Regional Transportation District (RTD) will present its proposed $1.34 billion expense budget for Fiscal Year 2027 to the RTD Board of Directors’ Finance and Planning Committee during tonight’s 5:30 p.m. Board meeting. The 2027 Proposed Budget takes a fiscally disciplined and customer-focused approach that emphasizes operational efficiencies, strategic capital investment, and continued progress in addressing the structural deficit.
Tonight’s presentation will include cost-saving recommendations designed to more closely align expenditures with projected revenue as the agency continues its multi-year approach to reduce the structural deficit that had been driven by operating costs rising faster than revenue. Since 2025, the agency has been implementing strategic cost optimization efforts that have reduced the deficit from $282 million in 2024 to $148 million in the 2027 Proposed Budget, a 47% improvement.
The 2027 Proposed Budget continues this effort with reduced staffing levels following the agency’s 2026 restructuring, vacancy eliminations, and efficiencies in materials and other expenses. Total appropriations of $2.29 billion will support operating expenses, state-of-good- repair projects, and debt service requirements. Additionally, the Clean Transit Enterprise (CTE) Board of Directors’ Sept. 29, 2026, action awarding RTD $44 million in Local Transit Operations grant funding directly supports transit service throughout the region, allowing the agency to deliver more frequent buses and trains, longer service hours, and new or expanded routes.
“The 2027 Proposed Budget reflects substantial progress made in 2026, which affirms the agency’s disciplined financial management and dedication to operational efficiencies,” General Manager and CEO Debra A. Johnson said. “And yet, amid these gains, notable challenges remain. To meet the needs of the current moment, the agency must consider both cost-optimization measures and options to diversify its revenues. Keeping these realities in mind, the 2027 Proposed Budget lays out a responsible course that reflects a shared commitment to stability and long-term strength.”
Revenue outlook
Revenue of $1.19 billion for 2027 is projected to increase 1.9% from the 2026 Amended Budget, excluding the impact of East Colfax Bus Rapid Transit (BRT) for which the agency is the designated federal recipient on behalf of the City and County of Denver. The final proposed budget will include a carryforward of East Colfax BRT grant revenue and expense from 2025 and 2026.
RTD’s primary revenue comes from a one-percent sales and use tax in the Denver metro area. Sales and use tax revenue is forecasted at $940 million for 2027, representing 79% of projected revenue. This projection is derived from the September 2026 forecast from the Business Research Division of the University of Colorado’s Leeds School of Business. The forecast anticipates 4.7% growth over the 2026 projection based on current trends. Sales and use tax is subject to external market factors, including inflation, recessions, and the availability of goods and services. Fare revenue is expected to reach $66 million in 2027, a $2 million (2.7%) increase from the 2026 Amended Budget.
Grant and other revenue, excluding East Colfax BRT, totals $185 million, a 10.8% decrease due in part to expected federal formula fund drawdown timing. Other income – including investment, advertising, and miscellaneous revenue – represents approximately 3% of total funding and is expected to remain stable. Staff will continue to monitor financial forecasts and pursue additional grant opportunities as needed.
The agency’s Finance staff has been closely and regularly monitoring financial forecasts, year-to-date expenses, and revenue projections to guide the 2027 Fiscal Year Budget development. The proposed budget is developed in alignment with the Board-adopted fiscal policy requirement of conservative revenue assumptions, Transit Asset Management (TAM) Plan considerations, and strategic plan priorities.
Capital investments
Capital expenditures of $615 million include a significant $550 million carryforward from prior years to support the multi‑year Downtown Rail Reconstruction Project and other major infrastructure projects driven by the agency’s TAM Plan. These investments are essential to ensure RTD’s assets remain in a state of good repair so that transit services are reliably delivered.
Operating expenses
Operating expenses are expected to decrease overall and RTD anticipates a $148 million decrease in net position, reflecting a large but declining structural deficit in 2027. Salaries and benefits have increased $10 million (2.5%) due to inflationary pressure in the market. Materials and supplies improved 7.8% to $63 million to more closely align with efficiency trends in 2026. These expenses could change as RTD approaches the opportunity to lock pricing for diesel fuel for 2027. Outside services of $136 million do not yet reflect East Colfax BRT expense that will carryforward from prior years. Insurance expense of $19 million is expected to increase 7.2% as costs continue to rise.
Public meetings and next steps
A virtual meeting registration link to view tonight’s presentation is available here. The public can also access the proposed 2027 budget posted on RTD’s website at www.rtd-denver.com/budget. Customers and stakeholders can share feedback about the proposed 2027 budget through Dec. 1.
The Board will consider taking action on the proposed budget, following a public hearing at 5:30 p.m. on Dec. 1. Customers and community stakeholders are invited to attend the December meeting, and details will be posted on the Board Meetings and Agendas webpage as the date approaches. If adopted by the Board, the proposed budget will run from Jan. 1 to Dec. 31, 2027.