Regional Transportation Commission asks legislature to extend authority to seek sales-tax ballot measure as transit funding shortfall looms

The Regional Transportation Commission of Southern Nevada told the Assembly Committee on Revenue that it needs authority to pursue a sales-tax ballot question through Clark County to avoid deep transit cuts that could begin in fiscal 2027 and worsen in 2028.

RTC Chief Executive Officer MJ Maynard told the committee that the agencyoperates 39 transit routes and provided about 52,000,000 passenger boardings last year, and that its projections show expenditures beginning to exceed revenues in fiscal 2028. Maynard said the RTC estimates it needs roughly $136,000,000 each year to maintain current service levels.

"If we don't act," Maynard said during the presentation, "we'll have to start cutting service potentially as early as '27 and '28." David Clyde, the RTC's chief legal officer, introduced Assembly Bill 28 to the committee as a narrowly focused measure: "This bill would extend the RTC's authority to recommend a sales tax ballot question to the Clark County Board of Commissioners from 2024 to 2028," he said.

Why it matters: Committee members and RTC staff said a sustained local funding shortfall would force the agency to cut or reduce service that many residents rely on for work, school and medical trips. RTC staff outlined specific cuts that could occur under the agency's deficit scenario: elimination of 7 routes and partial elimination of 20 routes in fiscal 2027; a 50% reduction in some RTC On Demand zones and GameDay Express service; and, by fiscal 2028, elimination of more than half of routes, reduction of paratransit service areas and loss of direct service to hospitals, colleges and dozens of employment sites. RTC said those first-round reductions would make transit inaccessible to roughly 19% of Clark County residents (about 343,000 people) under the scenario it presented.

RTC officials attributed the shortfall to multiple factors: long-term declines in fare and resort-area revenue following entry of transportation network companies in 2015, post-pandemic cost increases (staffing, paratransit, fuel, bus acquisition), and uncertain future federal aid. Maynard told the committee the agency has exhausted many internal savings and that local match funding is required to qualify for federal grants.

Public testimony and local support: Dozens of witnesses in Carson City, Las Vegas and by phone urged lawmakers to let voters decide. Warren Hardy, chair of RTC's Transportation Resource Advisory Committee, urged passage and used stark language about timing: "The house is on fire, Chair Backus, and we really need help on this." Business groups, cities (Las Vegas, Henderson, North Las Vegas), higher-education representatives and nonprofit witnesses cited potential economic and equity harms from service reductions. David Cherry of Henderson said reduced transit would affect "the ability of users in Henderson and other areas of the valley to use public transportation to connect to health care, jobs, school, parks and recreation centers."

What the bill would do: As presented, AB28 would not create or impose a tax; rather it would extend the RTC's temporary authority to recommend that Clark County place a sales-tax question before voters. RTC legal staff told the committee the measure would use the current statutory definition of taxable sales and does not broaden that definition.

Questions from legislators: Committee members asked whether the Clark County Commission would place a question on the ballot (RTC said it expects to request the vote and believes the commission would approve sending it to voters), what kind of revenue mechanisms were being considered (RTC said past study committees reviewed sales tax, property tax, DMV fees and TNC fees but that AB28 preserves only the option to request a sales-tax ballot question), and whether reduced federal grants or other outside factors would change RTC's timeline (RTC staff said federal grants remain important but local funding matters for grant eligibility and matching).

Opposition, alternatives and caveats: Few formal oppositions were recorded in committee testimony; one participant speaking as neutral suggested alternative revenue sources, including changes to gaming taxes, zoning for higher residential density along transit corridors, and different private-sector solutions. Several witnesses representing environmental or equity organizations said a sales tax is regressive and urged that any long-term strategy include revenue sources that limit disproportionate burden on lower-income households.

Next steps and administrative detail: Committee Chair Backus opened the hearing on AB28 and received testimony; the hearing was closed without a committee vote at the end of the session.

Ending note: RTC framed AB28 as a stopgap that preserves an existing option (the authority to request a sales-tax ballot question) while the region continues to pursue broader, longer-term financing solutions and planning for high-capacity transit and other service improvements.