Sales tax provides extra $51M to MBTA
The MBTA is on track for a $51 million boost over the course of fiscal year 2020 thanks to sales tax revenue increases that were not forecast, leading officials to predict a smaller budget deficit than they anticipated in October.
T budget-writers left a $36.5 million deficit in their budget when they crafted the fiscal 2020 spending plan. In October, that figure was bumped up to $53 million, with officials citing lagging real estate and advertising revenues and high overtime costs.
On Monday, though, MBTA Chief Administrative Officer David Panagore told the Fiscal and Management Control Board in a presentation that the deficit would likely come in between $38.6 million and $42.2 million.
Comptroller Andrew Maylor informed MBTA officials on Nov. 15 they were likely to receive $51 million more from sales tax than the base revenue amount they budgeted, Panagore said.
While that revenue has been surging, other costs have popped up. Overtime and other T revenue sources are running $24 million in the red compared to the initial fiscal 2020 budget plan, according to the presentation.
The T is also seeking an additional $14.5 million in spending through the remainder of the fiscal year, which also further affects the deficit, for staff who will implement recommendations of an independent safety panel, conduct quality assurance and quality control operations, help with a fare transformation project and more.
A $32 million allocation the Legislature approved in its fiscal 2019 closeout budget is not counted in the budgeting plan. Panagore said that money is deemed separate specifically for hiring of a "flex force" to accelerate maintenance. Gov. Charlie Baker had asked for $50 million.
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