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Proposed Fare and Service Change Public Workshop

Massachusetts Bay Transportation Authority. Proposed Fare and Service Change Public Workshop. Public Workshop Guidelines. Public workshops provide an opportunity to share comments and discuss suggestions with MBTA officials Twelve workshops will be held across the MBTA service area

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Proposed Fare and Service Change Public Workshop

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  1. Massachusetts Bay Transportation Authority Proposed Fare and Service Change Public Workshop

  2. Public Workshop Guidelines • Public workshops provide an opportunity to share comments and discuss suggestions with MBTA officials • Twelve workshops will be held across the MBTA service area • Comments and suggestions from all meetings will be considered by MBTA staff and management • Please be respectful of other attendees and limit your comment length so everyone may have an opportunity to participate • Suggestions and comments may also be submitted electronically at fareproposal@mbta.com and at the MBTA website www.mbta.com • Written comments may be submitted by mail to: MBTA Attention: Fare Proposal Ten Park Plaza Boston, MA 02116 • A public hearing will also be held at Ten Park Plaza on August 27 • Comments at the public hearing will be recorded by a court reporter

  3. Lower than anticipated revenues from the MBTA’s primary funding source, the sales tax Increasing annual payments on the $5.2 billion in outstanding MBTA debt A deteriorating national economy has negatively impacted the financial condition of the MBTA similar to other transit agencies The deficit is structural and requires a multi-year solution Why Does the MBTA Face a Structural Deficit? MBTA Funding Sources

  4. Underperformance of the Sales Tax Revenue • Legislation passed in 2000 dedicated 20% of the state’s sales tax receipts to the MBTA • Projections called for a minimum 3% annual increase in revenue • Actual sales tax receipts have grown only 1% annually on average • No increase in fiscal year 2010

  5. Annual payments on the $5.2 billion in outstanding debt consume nearly 30% of the MBTA operating budget Reasons for Increasing Debt Service: Lack of growth in sales tax revenues requires more borrowing Sales tax and assessment revenues must cover both operating and capital expenses Funding of approximately $3 billion in transit initiatives, expansion and commitments related to the Central Artery project A significant annual minimum investment in the existing system of $470 million per year required to maintain the $2.7 billion backlog in system maintenance and repair projects MBTA System Net Debt Service Highest Debt Burden of Any U.S. Transit Agency

  6. Addressing the Situation: What Is Being Done • Implemented a hiring freeze of non-direct service related positions and instituted layoffs during FY 2009 • Reduced headcount by 330 positions • Reduced overtime 17% since FY 2008 and 45% since FY 2005 • Lowered healthcare costs • Implemented plan design changes projected to save $5.4 million in the first year • Requires for the first time a 10% retiree health insurance co-payment • Created operational efficiencies over the past year, saving over $11 million annually • Transportation reform legislation

  7. What Are the Options for Addressing the Deficit? • Increase revenues by increasing fares • Reduce costs by cutting service • Implement certain cost efficiency measures • Implement a combination of above Considerations: • The proposed fare increase and other cost reductions provide the opportunity for financial stability over the next three years • Major service reductions would affect all modes and would result in a large loss in ridership • The $55 million in projected savings from these service reductions would fall short of what is needed to close the budget gap for the next fiscal year

  8. Summary of Proposed Fare Increase • The overall fare increase as proposed is 19.5% • Adult bus fares would increase to $1.50/$2 • Adult subway fares would increase to $2/$2.50 • Bus pass would increase to $47 • LinkPass would increase to $69 • 10- and 12-ride commuter rail tickets would be eliminated • TAP fares will be the same as Senior fares • RIDE fares would increase from $2 to $2.50 • The 6-day student pass would increase to $28 • Tokens will no longer be accepted after December 31, 2009 • More details are available in the information book • Note that the list of communities with services in the “Suburban Bus Program” on page 11 should include Dedham

  9. Providing Comments and Suggestions • We encourage your comments and suggestions related to the fare and service options under consideration • There are multiple ways to submit comments and suggestions • At the MBTA website, www.mbta.com • Sending an email to fareproposal@mbta.com • Written comments may be submitted by mail to: MBTA Attention: Fare Proposal Ten Park Plaza Boston, MA 02116 • Attend one of the 12 public workshops to be held across the MBTA service area • Attend the public hearing to be held at Ten Park Plaza on August 27 • Comments at the public hearing will be recorded by a court reporter

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