Due in part to debt assumed from Big Dig mitigation projects, 30% of the MBTA operating budget is dedicated to debt relief.  The MBTA is so overwhelmed with debt and the cost of the employee pension program that it cannot serve the basic needs of its ridership or properly maintain its infrastructure, let allow finance needed expansion projects.

The Blue Ribbon Commission that designed Forward Funding did not foresee the drop in sales tax revenue when they dedicated a portion of that revenue to manage the MBTA’s operating expenses.  The decrease in the sales tax has made it impossible for the MBTA to reduce its debt burden, and operating and maintenance has suffered.  Action must be taken to address the overwhelming burden of debt service and the ballooning cost of employee benefits to ensure the continued financial viability of the MBTA and its daily operations.  

The states RTA’s also find themselves in a position of flat revenue streams and increased costs.  Every year they are making the hard choices to cut back on service.  RTA’s provide the primary transit option for many communities in the region and are an integral element of the suburban system that collects riders using the commuter rail.  Their continued stability, including secure funding streams, are vital to the maintenance and expansion regional transit network.

18.a    The Legislature should take action for the Commonwealth to assume a portion of the MBTA’s debt

18.b    MBTA should reduce the rate of growth of fringe benefits costs by reforming health care and retirement policies

18.c    MAPC should assist the MBTA and the RTAs in exploring the possibility of joining the Group Insurance Commission (GIC)

18.d    The Legislature should “current fund” RTAs

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