Post Content

MBTA ReviewMassDOT today released proposed fare increase and service reduction plans for the MBTA aimed at closing a projected $161 million budget gap for fiscal year 2013.

Earlier estimates projected the gap would total approximately $185 million for FY13.  The MBTA has taken aggressive steps to reduce that deficit: reducing energy purchase costs, planned introduction of single person train operation on the Red Line, encouraging MBTA employees to enroll in more affordable health insurance plans and other operating and administrative efficiencies.  However, growing debt service costs associated with capital projects, significant increases in maintenance costs for an aging fleet and higher costs for the RIDE mean additional solutions are necessary.

The proposed fare increases and service reductions released today are aimed at closing the FY13 deficit. 

MBTA Fare Scenarios

"While the MBTA continues to identify and adopt strict measures to close the budget gap, less costly ways of doing business and additional revenue-generating measures are necessary," said MassDOT Transportation Secretary and CEO Richard Davey. "I am confident with the public’s involvement in this process we can review the study, propose recommendations, and together generate new revenue to continue the progress the MBTA has made in serving its customers.” 

In order to fully engage transit users in the process, the MBTA will host more than 20 public hearings over the next several months. A final fare increase and service reduction recommendation will be made to the MBTA’s Board of Directors this Spring and changes will be implemented on July 1, 2012.

In addition to rising operating costs, annual revenues continue to be insufficient to fund the system.  Sales tax revenue allocated to the MBTA has increased by only 0.08% annually since fiscal year 2001, resulting in growing budget gaps since the original projections were made with the expectation of forward funding. While the MBTA was a beneficiary of the 2009 sales tax increase, the annual growth in sales tax revenues is not enough to address continuing increases in the cost of service on all modes.

“With MBTA ridership at record levels, the demand for the services we deliver is unquestionable,”   said Acting MBTA General Manager Jonathan Davis.  “I look forward to an open and transparent public process that will lead to recommendations on how we can continue to satisfy demand while addressing the T’s financial crisis.” 

As only one of two transit properties in North America that has not raised fares over the last five years, the MBTA has worked hard to identify ways to save money and reduce costs, while improving customer service.  From investments in accessibility improvements to use of modern technology to improved transparency, the MBTA is committed to responding to the needs of its customers. 

The Fare Increase and Service Reductions Study is available at www.mbta.com.  

The MBTA’s public outreach process begins immediately with the acceptance of public comment through March 1, 2012 electronically at mbta.com, by email at fareproposal@mbta.com, via mail to MBTA, Ten Park Plaza, Boston, Ma  02116, Attention: Fare Proposal Committee, and by phone at 617-222-3200/ TTY (617) 222-5146.  20 Public meetings including one hearing will be held beginning January 17 through March 6.  A complete list of meetings times and locations is now available at www.mbta.com/jointhediscussion.

Written By:

Recent Posts

Somerville-Boston: I-93 South Resurfacing Begins July 7th posted on Jul 7

Somerville-Boston: I-93 South Resurfacing Begins July 7th

MassDOT crews on Tuesday evening, July 7th, will begin overnight pavement milling and resurfacing work on I-93 South between Exit 30 (Route 38) in Somerville and a point south of Exit 26 (Leverett Circle) just north of the Zakim Bridge in Boston. The work will   …Continue Reading Somerville-Boston: I-93 South Resurfacing Begins July 7th

I-95 Add-A-Lane Project Update posted on Jul 6

I-95 Add-A-Lane Project Update

MassDOT’s I-95/Route 128 Add-a-Lane Project final phase continues to move forward during the month of July. Throughout the week of July 6, MassDOT contractor Barletta Heavy Division will continue construction operations with work performed during both the standard working hours of 7:00AM to 3:00PM and   …Continue Reading I-95 Add-A-Lane Project Update

MassDOT: Prioritizing Capital Projects Recommendations posted on Jul 2

MassDOT: Prioritizing Capital Projects Recommendations

MassDOT Secretary and CEO Stephanie Pollack today announced the publication of new recommendations for the evaluation and prioritization of proposed capital projects. The recommendations have been submitted to MassDOT by an independent Project Selection Advisory Council, which has worked for 18 months to develop a   …Continue Reading MassDOT: Prioritizing Capital Projects Recommendations