TRAC Phases: Community Outreach and Planning

Funding Challenges and Potential Solutions

In 2019, TRAC began its fourth phase by focusing on the transit system in Southern Nevada and the funding challenges impacting transit and its financial future. The impacts of ride-share options on transit and other factors had led to a funding gap, forcing the RTC to dip into its reserves in 2020, reevaluate its funding sources, and make significant adjustments to transit options for the community. Following five months of in-depth study of the Southern Nevada transit system, current and future transit demands, and near-term and long-term funding needs, TRAC supported RTC pursuing potential reallocation of existing funds to continue current transit operations and future transit options.

Although COVID-19 disrupted the flow of goals and objectives during 2020, the committee reconvened for Phase 5 in October 2020. During this meeting, the TRAC committee reviewed the effects of COVID-19 on transit as well as streets and highway funding, reviewed the Maryland Parkway project, and previewed the 2021 legislative agenda. There were no formal TRAC recommendations on legislative priorities.

TRAC completed its fifth phase in October 2022, which focused primarily on Southern Nevada’s transit system, including its operations and financial headwinds. More specifically, TRAC reviewed financial shortcomings of the transit system as expenditures are expected to exceed revenues on a go-forward basis. However, the RTC received roughly $300 million of federal stimulus as a result of the COVID-19 pandemic and related response, which has allowed the RTC to shore up financial shortfalls through the 2028 forecast time horizon.

Phase 6 of the Transportation Resource Advisory Committee (TRAC) built upon the committee’s prior work addressing Southern Nevada’s long-term transportation funding challenges, with a heightened focus on advancing actionable strategies in advance of the 2025 Legislative Session. As the region continues to experience sustained population growth, evolving travel behavior and increasing strain on both roadway and transit systems, TRAC reconvened to transition from problem identification toward policy-ready direction.

During Phase 6, TRAC focused on the structural imbalance in how Southern Nevada funds its transportation system, recognizing that existing revenue mechanisms, particularly fuel taxes for roadways and sales taxes for transit, are increasingly misaligned with current and future system demands. Committee discussions emphasized the urgency of establishing a stable funding source to maintain baseline transit operations, preserve roadway infrastructure and support broader mobility, safety and equity goals.

Informed by prior phases and updated financial and policy analysis, TRAC evaluated near-term and longer-term funding concepts, implementation considerations and the potential role of the 2025 Legislative Session in advancing solutions. Particular attention was given to equity across vehicle types, the distinction between baseline and aspirational transportation investments, and the importance of coordinated communication and construction management to minimize impacts to residents and businesses.

Consistent with the direction outlined in Phase 5 and formalized through the adoption of a TRAC resolution, the committee reached consensus on a set of strategic, policy-level recommendations to guide RTC and state decision-makers. These recommendations included support for extending Fuel Revenue Indexing (FRI) as a near-term stabilization tool, exploring equitable roadway funding contributions from electric and hybrid vehicles, advancing sustainable revenue options for public transit and clearly separating baseline funding needs from future system expansion efforts.

Importantly, in the event RTC does not identify an alternative funding solution, the organization will need to begin cutting costs, including potentially reducing transit service.