davis_square | Come listen to the MBTA's Chief Financial Officer

The MBTA's expenses substantially exceed revenue, with a projected annual deficit of $160 million. In large part, this is due to debt resulting from the $2 billion system expansion ordered by the state to improve regional air quality and get cars off the road. No amount of service cutbacks, government reform, or operational savings can reduce the MBTA's $145 million annual expense for servicing this debt. To stay afloat, the T has been spending its rainy day fund. If nothing is done soon, they will simply run out of money.

Therefore, if new funding is not identified by the end of June, we can expect an across the board fare increase of 25 to 30 percent, and service cuts of about 30 percent, taking effect on September 1 or October 1 of this year. The details of these cuts are still being worked out, but the fiscal reality makes these kind of deep cuts absolutely necessary if there is no new funding.

The Governor's proposed transportation finance reform is designed to bring the MBTA sufficient revenue to maintain existing service at existing fares. The key element of this plan is an increase in the gasoline tax (intended to fund both highway maintenance and public transit), but the legislature will probably scale this back, leaving the MBTA on course for financial disaster.

To learn more, please come to the MBTA's Rider Oversight Committee meeting on Monday, March 30. Jonathan Davis, the MBTA's Chief Financial Officer, will provide an overview of the financial situation, and discuss the MBTA's current plan for implementing emergency fare increases and service cuts.

This meeting will be from 5-7 pm, on the second floor of the State Transportation Building. This is near Boston Common, on the northeast corner of Stuart & Charles, close to the Boylston or Chinatown subway stations.

Contact me for more information. Here is the official notice of the meeting:

http://mbta.com/about_the_mbta/public_meetings/?id=16777