Proposed Fare and Service Change Public Workshop
Massachusetts Bay Transportation Authority
Massachusetts Bay Transportation Authority
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Public Workshop Guidelines
Public workshops provide an opportunity to share comments and discuss suggestions with MBTA officialsTwelve workshops will be held across the MBTA service areaComments and suggestions from all meetings will be considered by MBTA staff and managementPlease be respectful of other attendees and limit your comment length so everyone may have an opportunity to participateSuggestions and comments may also be submitted electronically at [email protected] and at the MBTA website www.mbta.comWritten comments may be submitted by mail to:
MBTAAttention: Fare ProposalTen Park PlazaBoston, MA 02116
A public hearing will also be held at Ten Park Plaza on August 27 Comments at the public hearing will be recorded by a court reporter
Massachusetts Bay Transportation Authority
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Why Does the MBTA Face a Structural Deficit?
Lower than anticipated revenues from the MBTA’s primary funding source, the sales tax
Increasing annual payments on the $5.2 billion in outstanding MBTA debt
A deteriorating national economy has negatively impacted the financial condition of the MBTA similar to other transit agencies
The deficit is structural and requires a multi-year solution
Non-Fare Revenue
6%Sales Tax47%
Local Assessments
9%
Additional Sales Tax
10%Fare Revenue
28%
MBTA Funding Sources
Massachusetts Bay Transportation Authority
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Underperformance of the Sales Tax Revenue
Legislation passed in 2000 dedicated 20% of the state’s sales tax receipts to the MBTA
Projections called for a minimum 3% annual increase in revenue Actual sales tax receipts have grown only 1% annually on average No increase in fiscal year 2010
3% Projected Sales Tax Growth and Actual Base Revenue Amounts (BRA)
$842
$767
$600
$650
$700
$750
$800
$850
$900
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Mil
lio
ns
Fiscal Year3% Growth BRA
Massachusetts Bay Transportation Authority
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Highest Debt Burden of Any U.S. Transit AgencyAnnual payments on the $5.2 billion in outstanding debt consume nearly 30% of the MBTA operating budget
Reasons for Increasing Debt Service:
Lack of growth in sales tax revenues requires more borrowing Sales tax and assessment revenues must cover both operating and capital expenses
Funding of approximately $3 billion in transit initiatives, expansion and commitments related to the Central Artery project
A significant annual minimum investment in the existing system of $470 million per year required to maintain the $2.7 billion backlog in system maintenance and repair projects
-
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
300,000,000
350,000,000
400,000,000
450,000,000
500,000,000
2009 2011 2013 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037
Senior Sales Tax Assessment Prior Obligations
MBTA System Net Debt Service
Massachusetts Bay Transportation Authority
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Addressing the Situation: What Is Being Done
Implemented a hiring freeze of non-direct service related positions and instituted layoffs during FY 2009 Reduced headcount by 330 positions
Reduced overtime 17% since FY 2008 and 45% since FY 2005
Lowered healthcare costs Implemented plan design changes projected
to save $5.4 million in the first year Requires for the first time a 10% retiree health
insurance co-paymentCreated operational efficiencies over the past year, saving over $11 million annually
Transportation reform legislation
Massachusetts Bay Transportation Authority
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What Are the Options for Addressing the Deficit?
Increase revenues by increasing faresReduce costs by cutting serviceImplement certain cost efficiency measuresImplement a combination of above
Considerations:
The proposed fare increase and other cost reductions provide the opportunity for financial stability over the next three yearsMajor service reductions would affect all modes and would result in a large loss in ridership
The $55 million in projected savings from these service reductions would fall short of what is needed to close the budget gap for the next fiscal year
Massachusetts Bay Transportation Authority
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Summary of Proposed Fare Increase
The overall fare increase as proposed is 19.5% Adult bus fares would increase to $1.50/$2 Adult subway fares would increase to $2/$2.50 Bus pass would increase to $47 LinkPass would increase to $69 10- and 12-ride commuter rail tickets would be eliminated TAP fares will be the same as Senior fares RIDE fares would increase from $2 to $2.50 The 6-day student pass would increase to $28 Tokens will no longer be accepted after December 31, 2009
More details are available in the information book Note that the list of communities with services in the “Suburban
Bus Program” on page 11 should include Dedham
Massachusetts Bay Transportation Authority
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Providing Comments and Suggestions
We encourage your comments and suggestions related to the fare and service options under consideration
There are multiple ways to submit comments and suggestions At the MBTA website, www.mbta.com Sending an email to [email protected] Written comments may be submitted by mail to:
MBTAAttention: Fare ProposalTen Park PlazaBoston, MA 02116
Attend one of the 12 public workshops to be held across the MBTA service area
Attend the public hearing to be held at Ten Park Plaza on August 27 Comments at the public hearing will be recorded by a court reporter