What would you do to get the T out of its financial mess?

MBTA fiscal control board report cites ‘deep-seated’ problems

Says woes deeper than was thought

The board that oversees the Massachusetts Bay Transportation Authority says the agency’s problems are even more “serious and deep-seated” than a previous panel had discovered earlier this year, according to the board’s first report to the Legislature.

The report released on Tuesday is a bleak assessment of the T, summarizing the board’s findings since it first began meeting in July. Those disclosures, many of which were previously made public, include:

  • The T’s annual operating budget is “unsustainable,” and could lead to a $427 million budget gap by 2020 if officials do not address the rate of growth.
  • T officials say they would need nearly $7.3 billion to fully upgrade its infrastructure to good working order. The T should have been spending about $472 million on upgrades to its vehicles, tracks and other infrastructure. But since 2009, the T has only been spending an average of about $389 million a year.
  • Absences by drivers are the leading reason for lost bus, subway, and trolley trips. Absences also account for $14 million of $53 million in overtime spent during the 2015 fiscal year.

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Well, we've known the T is in a financial mess for a long time. It seems the general public is finally waking up to the idea.
 
It's strange that the Globe highlights absences when they only account for about 3% of the budget gap. I'm sure there are much bigger items (like the lack of revenue, interest paid on debt) that the Globe could have highlighted.
 
People want an easy target to point to and say "it's your fault!" That's human nature, sadly. In reality, blaming the system that we have in place, that doesn't give the T its own dedicated revenue source isn't as sexy and doesn't appeal to our primitive desires.
 
bigeman312 said:
In reality, blaming the system that we have in place, that doesn't give the T its own dedicated revenue source isn't as sexy and doesn't appeal to our primitive desires.
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The T does have a dedicated revenue source (after fares), 1% of the state sales tax. It is much easier to sell increased taxes to the public if they know that you have tried to eliminate the waste before asking for more money.
 
TallIsGood said:
The T does have a dedicated revenue source (after fares), 1% of the state sales tax. It is much easier to sell increased taxes to the public if they know that you have tried to eliminate the waste before asking for more money.
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Yes, but what do sales tax revenues and T maintenance needs have to do with one another? We've set the revenue amount completely independent of the expenditure needs. It is no surprise there is a mismatch.
 
I agree that it's bad policy to have a revenue source that has nothing to do with expenditures, but here's my proposal:

if the Massachusetts Marijuana Legalization Initiative passes next year, all taxes from marijuana sold in MA could go towards public transportation. Colorado is expecting to gain $125,000,000 from marijuana tax revenue this year. I know it's not a lot, but it could help. It would be our biggest new revenue source as a state, probably.
 
bigeman312 said:
I agree that it's bad policy to have a revenue source that has nothing to do with expenditures, but here's my proposal:

if the Massachusetts Marijuana Legalization Initiative passes next year, all taxes from marijuana sold in MA could go towards public transportation. Colorado is expecting to gain $125,000,000 from marijuana tax revenue this year. I know it's not a lot, but it could help. It would be our biggest new revenue source as a state, probably.
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You could double that revenue by concurrently hiking taxes on doritos, little debbies, and chinese food.
 
something something "Green" Line....


Sadly that's about the most reasonable solution (other than, you know, raising taxes) that I've seen yet.
 
How about the legislature collect taxes from all sources into a general fund, make a budget, and then spend the money according to the budget?

See, that requires actual decision making on a regular basis. Nothing can ruin a legislator's day like having to think critically about a hard problem and make a decision. Too risky. You can't make the wrong choice if you don't make any choices. Better to let the commonwealth teeter on the edge of financial disaster all the time and blame the other party or the administration or the last administration or ...
 
fattony said:
How about the legislature collect taxes from all sources into a general fund, make a budget, and then spend the money according to the budget?

See, that requires actual decision making on a regular basis. Nothing can ruin a legislator's day like having to think critically about a hard problem and make a decision. Too risky. You can't make the wrong choice if you don't make any choices. Better to let the commonwealth teeter on the edge of financial disaster all the time and blame the other party or the administration or the last administration or ...
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FTony -- you are starting to sound like FLine

The problem with that model is that the Legislature is dominated by Reps whose constituents don't give a damn about the T -- that's a result of the combination of the suburban-population demographic of the Boston area + the rest of Massachusetts outside of the T area

You can't solve the spending / taxing for the T unless you create the Metro County or something like the old MDC with an elected component

Otherwise the T will have to learn to live within the combination of Farebox, Ads and the 1% Sales Tax
 
fattony said:
How about the legislature collect taxes from all sources into a general fund, make a budget, and then spend the money according to the budget?
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Moderators--please move this to Crazy Transit Pitches.
 
The Herald has reported on the Report from the T Control Board
“unsustainable,” as expenses increase at nearly three times the rate of revenue growth. That demands “aggressive operating cost containment,” the board said, as well as an effort to boost revenue from internal sources, such as advertising, parking and real estate partnerships with the private sector.

On the capital side of the budget, the agency has under-invested, leaving the “state of good repair” backlog at $7.3 billion, higher than previously reported.
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Pioneer Institute has made some suggestions including outsourcing bus maintenance -- of course there will be a Knee-Jerk reaction

But think about it -- there are a lot of non T buses operated by universities, communities, and of course the much-dreaded for-profit private sector -- so there must be some non-T bus maintenance capabilities.

And for the sake of intelligent discussion lets leave the late and unlamented Fung Wah out of this
 
whighlander said:
The Herald has reported on the Report from the T Control Board


Pioneer Institute has made some suggestions including outsourcing bus maintenance -- of course there will be a Knee-Jerk reaction

But think about it -- there are a lot of non T buses operated by universities, communities, and of course the much-dreaded for-profit private sector -- so there must be some non-T bus maintenance capabilities.

And for the sake of intelligent discussion lets leave the late and unlamented Fung Wah out of this
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OK, because private-for-profit entities are really great at cost control. Particularly when they suckle at the government teat.

Private, for-profit insurgence really keeps healthcare cost down (highest in the world per person).

Private, for-profit colleges are basically high profit margin diploma mills, leaving students with huge debt.

Private, for-profit drug companies are gouging the daylights out of (only the US) healthcare system.

Private, for-profit Defense Contractors always deliver on-time and under budget... (NOT -- their programs make GLX look like it is on budget)

So private, for-profit bus maintenance is not going to be a gravy train?
 
JeffDowntown said:
OK, because private-for-profit entities are really great at cost control. Particularly when they suckle at the government teat.

Private, for-profit insurgence really keeps healthcare cost down (highest in the world per person).

Private, for-profit colleges are basically high profit margin diploma mills, leaving students with huge debt.

Private, for-profit drug companies are gouging the daylights out of (only the US) healthcare system.

Private, for-profit Defense Contractors always deliver on-time and under budget... (NOT -- their programs make GLX look like it is on budget)

So private, for-profit bus maintenance is not going to be a gravy train?
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Jeff -- all those examples are situations where the Feds are either the only customer or payer

Private bus companies haul people for private corporations, for excursion groups or just for individuals traveling on the cheap -- they have to have reasonably efficient and cost effective maintenance
 
whighlander said:
Jeff -- all those examples are situations where the Feds are either the only customer or payer

Private bus companies haul people for private corporations, for excursion groups or just for individuals traveling on the cheap -- they have to have reasonably efficient and cost effective maintenance
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I am guessing, though, that the scale of T bus maintenance would completely overshadow the current private maintenance business.

So the minute they take on the T contract, they start to look like every other government contractor, beholden to the government. Surprise surprise.
 
JeffDowntown said:
I am guessing, though, that the scale of T bus maintenance would completely overshadow the current private maintenance business.

So the minute they take on the T contract, they start to look like every other government contractor, beholden to the government. Surprise surprise.
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JeffD --that would be a good research project for some enterprising business student

Here are some starting points:
  • 1) How many private buses are there is the approximate MBTA operating district -- say within I-495
  • 2) How many miles / revenue miles do they run per year for each operator
  • 3) How much does the annual maintenance cost per mile / revenue mile run for each operator e.g. Harvard Medical School, Fidelity, MIT, Lexpress, some bus company doing convention shuttle business, tourist 'trolleys", Duck Boats, school buses, etc.
  • 4) allow for special circumstances such as lots of short hauls versus long, average age of the buses, experience levels of drivers, who does what kinds of maintenance, etc., etc., for each operator
  • 5) compare to T for each and in aggregate
  • 6) make a recommendation

Then write it up and send it Charlie and Stephanie
 
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