728 x 90
728 x 90
728 x 90
728 x 90
728 x 90

Contracting Out RTD Routes To Private Carriers Could Produce Saving And Better Service

IP-2-88 (February 1988)
Author: Spencer Swalm

PDF of full Issue Paper
Scribd version of full Issue Paper

In Brief

  • The Regional Transportation District as presently structured is a drag on the Colorado economy. A heavily subsidized government monopoly, RTD sucks millions of tax dollars out of the economy year after year.
  • But rather than buying Denver area residents a swift and efficient alternative to the automobile, these vast sums of capital are arguably being squandered.
  • Much of the blame is attributable to RTD’s structure. Vested with statutory authority to condemn its private competitors and subsidize its own operations, RTD has an unassailable monopoly on masses transportation. As such, it tends to extract a high price for inferior service.
  • The board would continue to oversee the delivery of mass transit services to the metro area, but RTD bus routes would be periodically put out to bid to whatever private companies can provide the best service at the best price.
  • Making the switch from operator to contractor at transit agencies in other cities has slashed deficits, improved service, and provided tax relief. The same could be achieved here.