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CDOT outlines options to patch Bustang's $25M funding gap; eyes CTIO toll and SB 184 fees for longer-term support
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Summary
CDOT staff told the Transportation Commission that federal and many state funding streams are limited for operating expenses and presented CTIO-controlled revenues (SB 24184 congestion fees and toll receipts) as the most promising avenue to partially fund Bustang, while warning legal/TABOR complexities remain.
CDOT staff on Friday defended expanded Bustang service and laid out why traditional transportation funding streams cannot close an estimated $25 million annual operating shortfall.
Kaye Kelly, CDOT presenter on intercity services, said Bustang contributes environmental and social benefits — "it encourages more walking, increasing physical activity," she said — and that the program surpassed its pre-pandemic ridership peak in 2025 with about 303,000 mainline riders. Yet CDOT faces a persistent operating gap even after modest farebox revenue, which totaled just under $4 million for mainline routes in 2025.
Jeff Hudmire, who walked the commission through state and federal funding eligibility, said federal capital programs such as STBG and Carbon Reduction are largely limited to capital investments. "There are really limited opportunities to use federal funds beyond what we are already using," he said, and he described CMAQ as a helpful but small contribution (roughly $2 million a year available to CDOT), and FTA formula funds as essentially spoken for by local transit agencies.
That left state sources with narrow eligibility. Hudmire said HTTF funds broadly cannot be used for transit operations and that MMOF and Faster Transit dollars are already committed. "The Transportation Commission reserve is not a funding source for ongoing operations," he added, calling it suitable only for short-term shortages.
Staff framed two near-term packages previously discussed (reallocations and a one-time FY27 transfer) as stopgap steps and urged exploration of a longer-term partnership with the Colorado Transportation Investment Office (CTIO). Piper Darlington said CTIO-controlled streams could provide flexibility. The two CTIO candidates are the congestion-impact fee authorized by Senate Bill 24184 (a statutory fee already dedicated to transit and rail) and toll revenues, though both have competing demands — notably passenger-rail projects — and legal and TABOR-related constraints that would need resolution.
Commissioners asked detailed follow-ups: whether CMAQ funds had already been repurposed (Hudmire said the $2 million was proposed, not yet reallocated), how mobility hub operating costs are charged (Kelly said they sit in a statewide maintenance contract), and whether the CTIO toll revenues would primarily stay in corridor-specific projects. Staff said CTIO discussions would continue and that additional legal analysis is underway.
Next steps: CDOT said it will return with more detailed funding scenarios, legal assessments on TABOR and ownership, and potential CTIO partnership frameworks at the upcoming meeting when staff plans to ask the commission to consider short-term reallocations and, separately, bring CTIO options for discussion.
