Intercity ‘Bustang’ pilot expanded service produced big ridership gains but faces funding gap

CDOT’s statewide intercity bus program (Bustang) reported substantial ridership gains after a legislatively‑funded pilot expanded weekday and weekend frequency. Presenters told the Transportation Legislation Review Committee that a $30 million general‑fund pilot approved in 2022 supported frequency expansions on the main lines and seasonal services; by December 2024 the pilot had reached full expansion goals and delivered double‑digit growth, with CDOT reporting a 21% system ridership increase in fiscal year 2025.

Presenters described Bustang’s financial model: key revenue streams include Federal Transit Administration rural‑intercity grants (Section 5311(f)), farebox revenue (reported about $4–4.5 million/year and increasing), a MMOF state allocation (~$3 million), and in FY26 a $6 million annual allocation of FASTER revenue to support capital fleet replacement.

Kate Kelly (bussing presentation) said seasonal services — including partnerships with ski resorts for snow‑season service and seasonal routes to Rocky Mountain National Park — remain popular and that the wide mix of funding sources helped the pilot succeed. She cautioned that while farebox recovery for commuter bus services can be low nationally, Bustang’s reported farebox recovery ratio (cited at around 26.1% during the presentation) was strong relative to the national commuter‑bus average and contributed to the system’s financial performance. CDOT staff told the committee that while the pilot succeeded in recruiting riders, sustaining those expanded service levels beyond pilot funding will create a budget gap that will need policy and funding solutions.