IB-1-2002 ( January 2002)
Author: John M.W. Aldridge, P.E., A.I.C.P.
Every year, the Regional Transportation District (RTD) is required to report to the Transportation Legislative Review Committee (CRS 43-2-145) about its compliance with a legislatively mandated farebox recovery ratio of 30 percent (CRS 32-9-119.7). The farebox recovery ratio means that passenger fares must pay for at least 30 percent of RTDs operating costs.
RTD tells the committee they meet the requirement. But the truth is, they dont. By a form of Enron accounting, RTD adds funds they get from federal operating grants and federal formal bus grants to the farebox revenue. This falsely inflates the farebox recovery ratio and disguises the fact that RTD routinely fails to meet the legislatively mandated 30 percent farebox recovery ratio.