Last week, officials at the T unveiled what will likely be their final proposal for closing their budget deficit for the coming fiscal year. It’s expected that the MBTA board will vote on the proposal at their meeting April 4.
The broad outlines of “Scenario 3″ bear a striking resemblance to what ABC called for in our position paper on the MBTA: a fare hike of no more than 25%, very limited service cuts, continued reforms and cost savings, and some form of outside help from other transportation or non-transportation revenues. As a result, we at ABC applaud the T for putting together Scenario 3 and are generally supportive of the proposal.
The Details: Hikes and Cuts
Specifically, the T is proposing:
- An average 23% fare hike across all modes. With a CharlieCard, a subway ride will go from $1.70 to $2, and a bus trip from $1.25 to $1.50. A monthly link pass will go from $59 to $70. (View the full list of proposed pass rates.)
- The cost of the Ride paratransit service would go from $2 to $4, or $5 for “premium trips” outside the federally mandated service area.
-Four weekday bus routes (the 48, 355, 500 and 710) will be eliminated. Other bus routes will be modified. This is far fewer cuts than were proposed under either of the previous scenarios.
-Commuter Rail service will be maintained for most lines on weekends but eliminated on the Greenbush, Plymouth & Kingston and Needham lines. Green Line E branch service will continue on weekends, but trains will stop at Brigham Circle instead of Heath Street. This preserves access to the the major cultural institutions along Huntington Avenue, and to the Longwood Medical Area.
-Ferry service is maintained but with higher fares; weekend service to and from Quincy will be eliminated.

Courtesy: The Boston Globe
Other Monies
Taken together, these fare hikes and service cuts generate about $100 million of the $161 million deficit. To make up the rest of the gap, MassDOT is relying on savings from additional reforms and one time revenues, including:
- $5 million from the long-term lease of the North Station parking garage;
- $5 million in surplus snow and ice removal monies left over after the mild winter; and, most importantly,
- $51 million from the Motor Vehicle Inspection Trust Fund.
The garage lease money is not a surprise, nor is the snow and ice, although many experts thought that amount would be much larger than it ultimately turned out to be. What is perhaps most surprising about Scenario 3 is the amount of money MassDOT was able to find in the Motor Vehicle Inspection Trust Fund. This fund collects the $29 fees from annual vehicle inspections and sets them aside for air quality mitigation. Since public transit is in itself a form of mitigation, it makes sense to apply these funds to the T. Still, the legislature needs to give MassDOT permission to transfer these funds to the T.
We knew MassDOT was eyeing fees of this nature to help close the gap, but most observers were surprised that they were able to find such a large sum — so large, in fact, that it enables MassDOT to balance the T’s books without any non-transportation revenues from the legislature. That’s good news. The bad news is, because MassDOT is taking virtually the entire surplus in the fund to deal with this year’s problem, those funds will not be available to help in the future. In fact, the T is now projecting that the deficit going into FY 2014 will be $100-110 million, as opposed to $40 million if the T had implemented Scenario 1 or 2. That means more fare hikes and service cuts — unless elected officials can come up with a longer-term solution between now and then.
Next Steps
So what happens now? MassDOT has filed legislation that enacts the cost-savings and reforms it’s counting on, and giving it the authority to use the inspection fees to help the T. That bill will be vetted by the Transportation Committee and then, hopefully, voted into law and signed by the Governor. That will make the T whole for the coming year.
The public process around these proposals has played out as well as it could be expected to. The T proposed two very harsh scenarios and then heard from the general public, in record numbers, that they were unacceptable. They went to the drawing board, scrubbed the numbers and came back with a package that, while still pretty severe, is much more in line with what the T has done in the past. It is also mostly consistent with the overwhelming preference in the public comments for a fare hike instead of broad service cuts. Not everyone will be happy; indeed, some advocates have decided to oppose any and all fare hikes and service cuts. But given the severe financial situation facing the T and rest of state government, we at ABC think that Scenario 3 represents a good one-year fix.
That said, it’s important to recognize that that’s all it is: a one-year fix. If we want to avoid another round of public hearings about fare hikes and service cuts, the administration and legislature need to address the underlying structure problems that are driving the T’s deficits. Chief among them is the enormous debt load the authority is carrying. Debt poses a different kind of problem for the state’s highway program, where we are borrowing hundreds of millions to pay for basic operations and maintenance.
So, even though we are happy that MassDOT has come up with a self-contained fix for the T, we continue to call for the administration and the legislature to create a task force to begin working on a comprehensive transportation finance plan for the entire Commonwealth. The good news is that both the Governor and the Speaker have signaled a willingness to tackle this issue first thing next year. In the meantime, ABC will be working with other advocates and members of the business community to keep the pressure on.
In a way, the T risks becoming a victim of its own success. Scenario 3 presents the legislature with a relatively painless solution to vote on, instead of dipping into non-transportation resources or raising new revenues. Once the T is “solved” for this year, transportation as an issue may drop off the radar screen. We can’t afford for that to happen. The public hearings about the T were the start of the “serious conversation” about transportation finance that we have needed to have for years. Now it’s up to all of us to keep that conversation going.
Tags: a better city, bus, fare hikes, ferries, green line, longwood medical area, MassDOT, MBTA, public transportation, service cuts, T cuts
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