Regional Transportation District leaders are preparing to cut jobs, a step toward addressing a projected $250 million per year shortfall and balancing RTD’s record-high $1.5 billion budget. .
The cuts are aimed at saving $10.7 million from the annual $431 million RTD spends on its 3,169 employees, according to emailed responses from RTD spokeswoman Marta Sipeki.
RTD chief executive and general manager Debra Johnson sent employees a memo Feb. 3 announcing the cuts as part of a strategic “realignment,” warning of “difficult decisions” in the coming months due to “an unprecedented economic situation.” Johnson noted “no federal funds are available” to help deal with the agency’s deficit.
“While the $10.7 million savings from the operations realignment is significant, it represents only a portion of the overall cost-saving measures needed,” the RTD statement said.
RTD officials plan to reduce vacant positions, eliminate contract work, and shrink or eliminate jobs in multiple departments. About half of the estimated annual savings will come from eliminating vacant management positions, including deputy assistant chief operations officer, general superintendent, assistant general superintendent, and other supervisory and business support positions, according to the statement.
The job cuts coincide with efforts by RTD’s 15 elected directors to find new sources of revenue, run bus and train service more efficiently, and cut other expenses. The directors in December approved the $1.5 billion budget but face a shortfall because of higher-than-anticipated maintenance and repair costs and projected declines in sales tax revenues, which fund 70% of RTD’s spending.
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For years, ATU officials have been warning RTD directors about “management bloat,” and $10.7 miliion in savings “obviously isn’t going to solve the budget problem,” Longenbohn said.
“RTD got themselves into this mess. They have added assistant managers in every division. They’ve added lead supervisors on top of supervisors — layers of management. It was, perhaps, a well-intentioned effort to try to be more interactive with employees. But we warned them,” he said.
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