MBTA Fare Hike

lexicon506

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In this post-crash forum world, some of us may have forgotten some of the darker stories from the past. So, regrettably, I'm bringing back the discussion of the MBTA's fare hike. Here's Grabauskas trying to explain the need for a fare increase in this lovely letter:

In any organization there are triumphs as well as challenges. While there is much to be proud of here at the MBTA, maintaining financial stability is our single greatest challenge. Like other transit properties, the MBTA is facing a fiscal year 2007 crisis - a budget shortfall of approximately $70 million.

As our customer, it?s important for you to understand the T?s current financial situation and the circumstances that expanded the deficit we face today. We prepared this booklet in an effort to explain our budget shortfall, and the rationale for the proposed fare increase/restructuring.

What you should know about the T?s financing structure:

1.

?Forward Funding,? a legislative mandate, requires the MBTA to be financially self-sufficient. To help us meet that goal, 20% of the sales tax receipts and assessments from 175 MBTA communities were established as primary revenue sources for the T.

Unfortunately, the timing of the introduction of Forward Funding coincided with the post-9/11 downturn of the economy in 2001. The result has been disappointing sales tax revenues that have not reached even the most conservative projections. The net loss in expected sales tax receipts since 2001 has been a total of $113 million in funds for the MBTA.
2.

We have the largest annual debt service payment of any transit agency in the country (27% of our budget), much of it going back years.
3.

Increased energy costs for diesel fuel and compressed natural gas to keep our buses and trains running continue to grow.
4.

One of the lowest fare recovery ratios of large transit agencies- total fare collection only funds 36% of the operating budget.

It?s important to note that the MBTA is not alone. Many other cities have faced the same financial challenges and have had to raise fares and/or cut service. The T is making every effort to avoid a reduction in basic services.

Our proposal, detailed within the following pages, recommends:

*

A fare increases that increases fare revenue by approximately 25%;
*

A fare restructuring plan that eliminates inconsistencies, inequities and includes bus to rapid transit and rapid transit to bus transfers;
*

Leveraging the benefits of automated fare collection which both addresses fare evasion for those who try to cheat the system and provides our customers with flexible, convenient and easy-to-use service.

As General Manager, my goal is to improve service and make the MBTA financially self-sufficient. I support a new fare structure to meet that goal, and to support working people. The fact is, over a million riders a day depend on the MBTA to get to work, travel in the evening and on weekends. The MBTA, even with this fare increase, is still significantly more cost-effective than the alternatives of driving or taking a cab.

I urge you to voice your thoughts during our public meetings or contact us at fareproposal@mbta.com and work with us to arrive at a positive consensus. Until then, it is my goal to bring the MBTA to a sound financial position while improving reliability and customer service.

Sincerely,
Signature of GM
Daniel A. Grabauskas
General Manager


I, of course, do not like the idea of raising the fare for an already less than desirable service. But I do recognize the need for more money in the debt ridden MBTA. My idea came to me as I was driving through the many tolls around NYC. The city, state, whoever, should place new tolls before the I-90 interchange on I-93 north, before the Zakim on I-93 south, and at BOTH the entrance and exits of the Ted Williams Tunnel on the airport side. Placing extra tolls will cost people even more to drive in and would encourage them to take public transit. And ALL (or at least a large majority) of the money from the tolls should go towards improving public transit so it's a fair trade (give up car/pay more tolls for good, reliable, extensive service). The tolls would be easily justified by the large and impressive bridges and tunnels that make up the Boston highway system. All the tolls in the Boston area going towards transit would definitely make a difference, and we could avoid a fare hike (kind of like London).
 

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