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Sen. Zurier introduces bills to shore up RIPTA funding

 

STATE HOUSE — Sen. Samuel D. Zurier has introduced a package of legislation to ensure that gas tax revenue assigned to Rhode Island Public Transit Authority keeps up with inflation.

“Rhode Island has consistently failed to fund RIPTA sufficiently, falling short of meeting the transit needs of many Rhode Islanders and also delaying our progress to reduce our state’s greenhouse gas emissions,” said Senator Zurier (D-Dist. 3, Providence). “Structural flaws in the laws governing the gas tax are one important cause of this underfunding, which have allowed RIPTA’s share of gas tax revenues to shrink relative to inflation over the last nine years. These bills are designed to make the gas tax a stable source of funding for RIPTA going forward.”

The first bill (2025-S 0046) would increase the share of annual gas tax revenue allocated to RIPTA to 30% of the total share. When the gas tax was first set at 32.5 cents per gallon, RIPTA was allocated 9.75 cents per gallon, which was a 30% share. As the gas tax has increased to 38 cents per gallon due to inflation, RIPTA’s share has remained 9.75 cents per gallon, or about a 26% share.

The second bill (2025-S 0047) would adjust the way inflation is counted when adjusting the total gas tax rate. Currently, the Department of Revenue adjusts the gas tax to account for inflation every two years, but only considers inflation from the previous year when doing so. This practice means that adjustments to the gas tax do not keep pace with inflation because they ignore the inflation that occurs every other year. If the gas tax had kept pace with the Consumer Price Index for All Urban Consumers (CPI-U), it would currently be 42 cents per gallon instead of 38. Senator Zurier’s bill would change this calculation going forward to include the entire change in CPI-U every two years, assuring that the gas tax rate keeps pace with inflation in the future.

“By undercounting cost of living increases, this interpretation of the inflation adjustment has deprived the state of more than $17 million annually,” said Senator Zurier. “Had RIPTA received 30% of these lost revenues, it would have provided an additional $5 million annually.  Together, these bills will ensure that the state’s future collection of this revenue more effectively aligns with the needs of bus passengers and the mandates of the Act on Climate.”

In 2021, the state passed the Act on Climate, committing the state to carbon neutrality by 2050. As about 25% of Rhode Island’s carbon emissions come from cars and trucks, increasing the RIPTA ridership is an important part of meeting this goal.

“The Save RIPTA coalition is grateful to Senator Zurier for his dedication to fighting for a public transportation system that is reliable, accessible and convenient for all Rhode Islanders,” said Liza Burkin, an organizer of the effort to Save RIPTA. “We look forward to working with the General Assembly to find sustainable, long-term funding solutions to ensure RIPTA can drive our economy forward, reduce carbon emissions and get people where they need to go.”

Said Scott Wolf, executive director of Grow Smart RI, “Senator Zurier gets it - he understands the important role that public transit plays in strengthening Rhode Island’s economy, location efficient housing production, environment and overall competitiveness. While the proposed increase in funding isn’t sufficient to close the entire RIPTA budget gap or to more aggressively implement the Transit Master Plan, these two proposals move us in a direction of more predictable and sustainable funding for RIPTA.”

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