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The Boston Globe - 10/17/2007

Bumpy road ahead for MBTA, study says (new window)

More fare hikes, service drops seen

A new MassPIRG study projects worsening deficits at the MBTA and says that unless solutions are adopted, the debt-laden public transportation agency is looking at more fare increases, service reductions, and borrowing just to make ends meet.

"These are the options, and all of them are bad," Eric Bourassa, a consumer advocate at the Massachusetts Public Interest Research Group, told State House News Service.

The MBTA, which has raised fares three times this decade, is carrying $8.1 billion in debt and faces projected deficits over the next five years of between $357 million and $438 million.

The report, which was released yesterday, recommends broad solutions, such as state taxpayers picking up more MBTA debt or the creation of new unspecified revenues.

If fare increases alone are used to close the budget gaps, they would have to increase by at least 38 percent over the next five years. This would boost the cost of a single subway ride to $2.35 on a CharlieCard, and the cost of a Zone 4 commuter rail pass to $257 per month, the report indicates.

If service cuts were chosen, the MBTA would need to consider reducing bus routes and weekday night and weekend service.

And if borrowing were the solution, the authority would need to consider increasing the percentage of its budget devoted to debt service, which is now 28 percent, said the report, which MassPIRG planned to deliver to the governor.

GLOBE STAFF 

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