MASSPIRG Report: MBTA Derailed By Debt
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IN THE NEWS—MASSPIRG's research on the budget crisis facing the MBTA has been widely covered by the media. |
As part of our work to promote mass transit and push for investment in trains, light rail, buses and all our public transportation, on Oct. 16 MASSPIRG released “Derailed by Debt,” a report that analyzes the Massachusetts Bay Transportation Authority’s (MBTA) finances over the next five years. The report reveals that the MBTA faces a number of unhealthy choices to close a five-year operating budget deficit estimated between $357 and $438 million.
Carrying an $8.1 billion debt with interest, the MBTA will be forced to dramatically increase fares, cut service, or borrow more money to close budget gaps if state lawmakers do not provide debt relief. All of these options would negatively affect the MBTA and its riders by making the system less affordable, less available, run less frequently or become more indebted in the long run. The result would be a decrease in ridership.
“These budget gap numbers paint a bleak picture,” said MASSPIRG Consumer Advocate Eric Bourassa. “The options available to the T to close the deficits—higher fares, less service, or a greater debt—would without a doubt negatively affect ridership.”
A decrease in transit ridership would hurt the environment, the economy and quality of life in the greater Boston region. The result would be worse traffic congestion and air pollution, greater stress on road and bridge infrastructure, and greater dependence on oil.
Addressing The Big Dig Debt
Much of the MBTA’s debt problem is a result of the Big Dig. Over the years, more state and federal transportation money should have gone to the MBTA, but as Big Dig construction went billions over budget, it swallowed up funds that could have addressed these problems.
Further, the MBTA incurred much of the costs associated with transit expansion and improvement projects required to offset the additional air pollution created as a result of the central artery and tunnel expansion. Rather than saddling the MBTA with these costs, they should have been included in the Big Dig’s original budget.
In September 2007, the Transportation Finance Commission, a blue-ribbon commission tasked with examining the state’s public transit systems, recommended the state relieve the MBTA of $1.8 billion of debt associated with Big Dig commitments. MASSPIRG echoed this recommendation with the release of our analysis.
“It’s not fair that the MBTA is suffering because of projects they were forced to pay for as a part of Big Dig air pollution mitigation,” said Bourassa. “The state should have factored in and budgeted for the environmental and public health impacts of the Big Dig, and not dumped those costs on the T and its riders.”
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