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Keep the T on Track

 

What's New

Growing debt costs and high energy bills have created a $75 million deficit in the MBTA’s fiscal year 2009 budget. To close the deficit, the MBTA has increased borrowing and depleted the agency's rainy day fund.

With debt costs continuing to rise next fiscal year, it is highly likely the MBTA will be forced to dramatically increase fares or cut service if state lawmakers do not address the MBTA’s massive debt burden.

Overview

The MBTA has undergone major changes in the past several years. Unfortunately the authority falls dramatically short of what it needs to be, and is facing major financial problems as it moves forward.

At the heart of the problem is that the T spends more than a quarter of its annual budget paying off $8 billion of debt (with interest), much of it from state transit commitments to offset Big Dig air pollution that should be paid for by the state and not by T riders.

Now the T is facing a downward spiral
in which the authority 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.

Until this debt burden is solved, the MBTA will continue to request rate hikes to bridge its operating deficits, and will do nothing to address the backlog of needed service improvements.

MASSPIRG supports legislation filed by Representatives Carl Sciortino, Alice Wolf and Senator Jarrett Barrios to have the Commonwealth assume a portion of the T's debt. Only then can the nation's oldest public transit system live up to its potential by fixing the backlog of maintenance needs, improving service, minimizing fares, and increasing ridership.



 

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