CLF and Northeastern University develop framework for financially stable transit system in MA

Apr 8, 2011 by  | Bio |  Leave a Comment

(Photo credit: Stephanie Chappe)

In anticipation of a state Joint Transportation Committee hearing on April 12, today, CLF and the Dukakis Center at Northeastern University released two reports to address the financial woes of public transportation in Massachusetts. The reports were based on conclusions gleaned from a blue-ribbon summit that the two groups co-hosted last November, which brought leading transit finance experts from around the country together to explore and develop solutions that can help build sustainable funding mechanisms for transit currently available in Massachusetts and allow expansion of those services over time. In addition, the reports are supplemented by a background paper describing the financial status of public transportation in Massachusetts and a series of options papers discussing the pros and cons of potential solutions to the problem.

Public transportation in Massachusetts is facing a stark financial crisis. The MBTA alone has a backlog of $3 billion of needed repairs and an increasing gap in its operating budget. The fifteen Regional Transit Authorities around the state, on the other hand, are forced to underserve their current customers because they lack a combined $125 million per year required just to meet present demand on existing bus routes.

Despite the fact that over the years they have received a lion’s share of transportation dollars, the state’s roads and bridges are also in desperate need of repairs. A few years ago, the Transportation Finance Commission projected that Massachusetts will have a $15-$19 billion gap in transportation resources over the next 20 years. While the existence and extent of this financial crisis is well documented, few solutions are currently on the table because so many stakeholders and policymakers mistakenly believe that transit finance in Massachusetts is an intractable and overwhelming problem for which no viable solution exists.

The important lessons learned from the summit include that:

  • A financially stable public transportation system requires a healthy and diverse portfolio of revenue sources, rather than the current all-eggs-in-one-basket approach. The current funding system relies heavily on a small number of sometimes volatile funding sources, such as the sales tax.  The experts underscored the importance of  identifying brand new streams of revenue.
  • With the chronic under-pricing of automobile travel, raising transit fares is not the answer.  Increased fares, at this time, would send the wrong price signals to transportation users and would create more incentive for people to drive, ultimately reducing the great economic, environmental, and social benefits of public transportation.
  • Along with new revenue sources, such as vehicle-miles-traveled fees, universal transit pass programs, and increased registry fees, as well as further cost-efficiencies, a change in fare structures, rather than raising fares, and maximizing ridership are key strategies for generating user revenue equitably and affordably.

Read the full reports, background and option papers:

Freezing weather and chilly commuters highlight need for MBTA investments

Jan 27, 2011 by  | Bio |  1 Comment »

MBTA General Manager Richard Davey likes to say “We’re only as good as our last rush hour,’’ and by that standard the T is not doing very well right now. The long delays throughout system on a recent frigid day have enraged commuters and discouraged new riders from getting onboard, as Boston Globe reporter Eric Moskowitz wrote in an article published in yesterday’s paper.

The T, to its credit, did not pretend it was surprised it gets cold in Boston in January. When it discusses the T’s “aging fleet” the Globe hints at the real reason for these delays:  a long list of necessary repairs to its system that the T estimates will cost at least $2.7 billion to address.  Despite the ingenuity of MBTA’s employees to keep the system running, the only way we can ensure that the T runs smoothly in the future is to raise sufficient revenue to pay for much delayed improvements.  While few in government right now want to talk about raising revenue, investment in public transportation infrastructure, not just for the MBTA, but throughout the state, is critical for encouraging economic development, slashing the greenhouse gas pollution changing our climate, improving air quality, and providing affordable and efficient transportation for everyone.