T considering ways to close $50M deficit
Image | Grant Welker
West-East Rail would see an increase of service through Worcester's Union Station.
On the menu for MBTA officials seeking to further shrink the agency's roughly $50 million structural deficit are elimination of same-day booking for The Ride paratransit service, savings in commuter rail weekend service and the introduction of alcohol ads onto the system - a source of controversy in the past.
Michael Abramo, the MBTA's chief financial officer, said the ads would appear on digital billboards and only run at certain times of day to avoid beaming their pro-booze messages at children traveling to and from school. A presentation Abramo made to the MBTA Fiscal and Management Control Board on Monday reported that peer transit agencies - in Atlanta, Chicago, Washington, D.C. and elsewhere - accept alcohol ads.
Abramo said the alcohol ads, which would require a change in MBTA policy, could boost advertising revenues by $1.5 million to $3 million.
Facing an April 15 deadline for passing a fiscal 2018 budget, the control board has a meeting scheduled for Thursday to make decisions about its annual spending plan.
While Gov. Charlie Baker has opposed an across-the-board elimination of weekend commuter rail service, Abramo's presentation include a potential $6 million in annual savings from weekend commuter rail.
Earlier in the year, T officials faced vocal pushback in response to a proposal to eliminate "premium" paratransit service - to areas more than three quarters of a mile from active bus and subway service. On Monday, Abramo proposed eliminating same-day booking except in emergencies for The Ride and switching to a new model of contracting out paratransit trips in the "premium" area, which could save more than $7 million combined, according to his presentation.
Under the proposal, the T would use a "brokerage" system for linking drivers up with paratransit passengers traveling to or from premium areas, such as Medfield, Topsfield or Middleton, according to Abramo.
In February the MBTA opened up a pilot program where paratransit riders can book on-demand trips from Uber and Lyft, which participants said offered a savings to the state and convenience for riders with disabilities.
Other budget options on the table Thursday might be less visible to customers but could shift the working conditions of the T's maintenance staff.
Privatizing several of the bus maintenance garages would generate an annual savings of $11.1 million, according to T officials. MBTA Chief Administrator Brian Shortsleeve said other savings could be realized by more efficient work practices at the Cabot garage and by contracting out some of the work now done at the Everett bus shop.
The MBTA anticipates a Chelsea extension of the Silver Line will begin operations midway through fiscal 2018 at an annual cost of $5 million. MBTA brass also want to use $7.3 million for strategic hires.
Steve Poftak, a member of the control board, asked whether there was a "potential headcount reduction that gets us more money without cutting off our vital limbs?"
Shortsleeve responded that there are about 500 staffers on the corporate side - not including police or capital program staff - that "we can take another look at."
The MBTA is counting on another influx of $187 million in state appropriations in fiscal 2018, but hopes to spend the bulk of that on the capital program to repair and upgrade the existing system.
The projected fiscal 2017 deficit is $50 million. Even without following through on Abramo's suggestions, savings from other areas of the budget are projected to drop the deficit to $42 million in fiscal 2018, according to the presentation.
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