RTC warns transit and roadway funding shortfall could force deep service cuts; backs AB 28 to seek ballot authority

The Regional Transportation Commission of Southern Nevada told the Senate Committee on Revenue and Economic Development on March 1 that the region faces a steep decline in roadway and transit funding unless the county’s fuel revenue indexing program and new revenue options continue.

The RTC presentation focused on two related problems: a projected drop in road-construction funding should the Fuel Revenue Indexing (FRI) program end, and a growing deficit in transit operations that could require large route and service cuts as early as fiscal 2027. The commission asked the Legislature to support Assembly Bill 28 to extend RTC authority to seek a sales-tax ballot question from the Clark County Board of Commissioners.

MJ Maynard, chief executive officer of the Regional Transportation Commission of Southern Nevada, said the agency manages planning and funding for more than 8,000 miles of roadway and operates the region’s public transit system. "We are the roadway funding agency for Southern Nevada as well as the public transit provider and we have challenges, funding challenges, related to both," Maynard told committee members.

RTC staff said roadway project funding currently relies on three sources: motor-vehicle fuel tax, a sales tax dedicated to transportation, and the fuel revenue indexing program (FRI). FRI began with enabling legislation in 2013 and a voter-approved continuation in 2016; RTC representatives said indexing has generated more than $1 billion in incremental revenue for roadway projects.

The commission presented a cash-balance projection showing that if FRI is discontinued, the annual pool of funds available for local roadway work could shrink from about $300 million shared across Clark County and cities to roughly $100 million. RTC staff also reported that the jurisdictions have identified 167 projects with no funding, totaling about $2.7 billion in unmet needs.

On transit, the RTC said it provided about 52.2 million passenger trips in fiscal 2024 and averages roughly 153,000 daily boardings. The agency described a combination of long-term trends that have reduced revenue or increased costs: lower per-capita gallons sold because of fuel efficiency and electric vehicles, competition from ride-hailing in the resort corridor since 2015, pandemic-era ridership declines, and rising operating costs (including labor and vehicle procurement).

Angela Castro, deputy CEO, summarized the transit projection: "In fiscal 28, we're projecting an $85,000,000 deficit," Castro said, adding that the shortfall worsens in later years and could require reductions that total roughly $136 million to balance the budget. RTC slides presented to the committee estimated staged service reductions under no-new-revenue scenarios: beginning in 2027, elimination of seven routes, partial elimination of 20 routes, a 50–63% reduction in RTC On Demand zones, cuts to Game Day Express service, and major reductions in paratransit capacity. The commission said the largest scenario would leave fewer than 40% of valley residents within a half-mile of a bus stop (compared with about 83% today) and would remove transit access to hospitals, colleges, high schools and major employers.

Maynard and Castro stressed the community consequences: the cuts would affect an estimated 343,000 residents in an initial set of reductions and up to about 900,000 residents and roughly 280,000 jobs in the larger reduction scenario, according to RTC materials shown to the committee.

To address transit funding, RTC staff said multiple revenue tools will be necessary. Their top legislative priority is AB 28, which would extend the RTC’s authority to recommend a sales-tax ballot question to Clark County commissioners. "AB 28 represents an important first step by extending our authority to request a ballot question and seek input on the future of our transit system," Maynard said.

Senators asked questions after the presentation. Senator Steinbeck asked about occupancy and daily use: "What are your actual occupancy rates on the buses and how many residents utilize them each day?" Maynard replied that usage varies by route and time of day, noted RTC’s high efficiency ranking nationally and said the system records about 153,000 daily boardings; she offered to provide route-level occupancy data to the committee.

Senator Stone asked for an explanation of fuel revenue indexing. Maynard explained that the 2013 enabling law allowed Clark County to adopt constrained indexing; the program was extended by voter approval in 2016 and is structured with statutory guardrails. "It was very constrained and it really looked at the ruling PPI, the CPI, and how that was going to work," Maynard said.

Several committee members pressed on equity and program details, including how student passes and nonprofit discounts are managed. Maynard noted RTC partnerships with the Clark County School District and a community mobility grant program that provides discounted or free passes for qualifying nonprofits and vulnerable riders.

The RTC presentation concluded with a request for public engagement and legislative action. Maynard said the commission will continue outreach around a potential ballot question and related revenue options, and she thanked the committee for the opportunity to present.

The committee did not take a formal vote on legislation during the hearing; RTC representatives described policy options and asked legislators to consider AB 28 and other revenue tools.

The RTC presentation and Q&A occupied the first portion of the committee’s agenda; the committee then heard a separate briefing from the Department of Motor Vehicles on revenue sources and fuel taxes.