Briefing: MBTA Bailout
The Legislature has decided to help the Massachusetts Bay Transportation Authority (MBTA) close its deficit by forking over the state's $51 million in surplus revenues from the motor vehicle inspection trust fund. In recent weeks, both the House and Senate passed legislation to bail out the debt-laden MBTA for the third time in 12 years.
What does the bailout entail?
While the House approved a bailout in a 130-25 vote, lawmakers from communities farther from Boston took issue over the use of money collected statewide. But a compromise was reached that would give regional transit authorities $3.5 million, including $2 million from the trust fund and $1.5 in surplus snow and ice removal money. The Senate approved the plan, rejecting amendments to create a finance control board and give the funds in the form of a loan.
Is a long-term solution coming?
Lawmakers have expressed frustration over taxpayers giving the T more bailout money, with members from both chambers calling for a debate on a long-term solution in the next session, especially as the T pursues expansion plans. Recent federal filings by the Patrick administration included higher taxpayer and motorist costs as financing options, but Gov. Deval Patrick said the ideas were hypothetical and no consensus about long-term solutions had been made.
How much debt does the MBTA have?
According to its website, the T projects a $185 million deficit for fiscal year 2013, which begins next week. Fare increases, effective July 1, are expected to bring in $72.9 million; schedule changes, another $15.4 million. The T also saved money through administrative changes.
How will this affect riders?
Fares are rising, on average, 23 percent. A one-way ticket on the commuter rail from Worcester or Fitchburg to Boston is going up from $7.75 to $13 if it's purchased in advance. (There will be a $3 discount for a ticket bought in advance.) The cost of a monthly pass will rise 26 percent to $314. A train ride from Framingham will cost $11 (discount price: $8), up from $6.25, with a monthly pass going up 20 percent to $252.
Material from State House News Service was used in this report.
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