Boston—A
long awaited report by the Transportation Finance Commission, created
by Governor Romney and the legislature in 2004 to study the state’s
transportation infrastructure, announced today that the MBTA will be $6
- $8 billion short of funding over the next twenty years to address
basic operations.
The
report looked at transportation funding statewide and found a $15 – $19
billion shortfall, which includes Mass Highway, the Mass Turnpike, DCR
Bridge and Parkways program, and local road maintenance.
The
report cites that “the MBTA finds itself in a downward spiral in which
it cannot generate the revenue necessary to achieve a state of good
repair, meaning that the MBTA cannot improve service quality, retain
and attract riders, and increase revenue over time.”
Transit
advocacy groups (MASSPIRG, ACE, T-Riders Union, Livable Streets
Alliance and others involved with the On The Move Coalition) pointed to
the report as evidence that the T’s massive debt must be addressed by
the legislature. This legislative session, a number of lawmakers filed
legislation to relieve the T of a major portion of the authority’s
debt. The bill, which was introduced by Senator Jarrett Barrios and
Representatives Alice Wolf and Carl Sciortino calls for the state to
accept $2.9 billion of the T's $5.2 billion debt ($8.1 billion if
interest is included).
“The
debt the T inherited, much of which came from the Big Dig, is
unsustainable,” said MASSPIRG Consumer Advocate Eric Bourassa. “Too
much of the T’s expenses go to paying down an unjust debt instead of
being invested in the system to improve service. As a result, fares
have gone way up and ridership has stagnated.”
Currently, the T devotes 27 percent of its operating budget to debt service, the T’s largest single expense.
"This
report reaffirms what many in the Legislature already knew, public
transportation needs to be a priority in this state,” said
Representative Alice Wolf (D-Cambridge) co-sponsor of legislation to
address the T’s debt. “The MBTA cannot continue to operate under the
weight of this debt. Without state involvement, we may see the collapse
of public transportation in Massachusetts, which would have severe
economic and environmental implications."
“The
T's debt is unmanageable,” concurred state Senator Jarrett Barrios
(D-Cambridge). “Changes need to be made because if service continues to
decline, people will stop using the T, which means more traffic and air
pollution from cars—the absolute opposite of what needs to occur.”
According
to the advocacy groups, much of the T’s debt can be attributed to
Central Artery tunnel transit commitments that the MBTA was forced to
take on and could have been paid off if the Big Dig had not gone so
much over budget.
In
order for the Big Dig to comply with federal Clean Air Act
requirements, the project needed to offset increased pollution from
traffic by increasing public
transportation. These transit projects, argue advocacy groups, were
required by the Big Dig and therefore should have been part of the Big
Dig’s overall budget, not dumped on the T.
“It’s
an unfair burden to force T riders to pay down debt caused by the Big
Dig—a project that primarily benefits drivers,” said Lee Matsueda of
the T Riders Union.
MBTA
riders have also suffered because the T’s external funding source has
fallen short of the Legislature’s expectations. In 2000, the
Legislature allocated 20 percent of the state’s 5 percent sales tax
annually to the T as a way to replace the annual allocations it had
made to the T. Back then, analysts projected that the sales tax would
grow by 5 percent or more each year, as it had during the 1990s,
providing the T with adequate revenue to meet operating expenses and
pay down the debt. But the rise in online and mail order shopping and
other factors has stymied sales tax revenues. For example, in 2002
alone sales tax revenues declined by 1.6%. As a result, the T has been
left hundreds of millions of dollars short of projection and need.
“The
T is facing is a downward spiral in which it is forced to increase
fares to cover its debt costs, which in turn discourages ridership,
leading to even greater deficits that get addressed through further
fare increases, reductions in service, and delayed system repairs. Each
time that happens, more people abandon the T for their cars, leading to
increased roadway congestion and air pollution. That harms everyone,”
said Eugene Benson of Alternatives for Community & Environment
(ACE). Advocacy groups are calling on the legislature to read the
Transportation Finance Commission’s report carefully and begin the
process of addressing the T’s serious financial problems.
“Until
this debt problem is solved, the MBTA will continue to request rate
hikes to bridge its operating deficits, and will do nothing to address
its backlog of necessary service improvements. Without action the
problem will only get worse,” said Jeff Rosenblum of the Livable
Streets Alliance.
