Without Funding Solution, T Fare Hikes Likely

Though the submitted MBTA budget for the next fiscal year has been approved, it assumes additional funding will close the $118 million gap.

The MBTA’s fiscal year 2014 $1.86 billion budget was approved at a meeting of the Massachusetts Department of Transportation Board of Directors Wednesday. The budget relies on either Gov. Deval Patrick’s “The Way Forward” transportation plan, which would pump $1 billion in revenues into the system by way of fare increases, fees and tax hikes, or another plan from either the House of Representatives, the Senate or both.

If Patrick's plan is approved, the T will have a 5 percent fare increase next year to keep pace with inflation. If the plan is not approved by July 1, fare increases could go up to the 20 or 25 percent range.

MBTA Advisory Board Executive Director Paul Regan said at the meeting fare hikes, service cuts, some combination of the two or an offset of $77.7 million in gap funding carried over to fiscal year 2015 would be necessary if not for additional funding by July 1.

“It’s important for people to know that this is not a done deal," Regan said.

The budget projects MBTA fare revenue will increase 6 percent, advertising revenue will increase 14.4 percent and there will be a small increase in real estate income in 2014 as compared to 2013.

He noted that if the board decides to carry over the debt to 2015, the MBTA could avoid fare hikes for the year. But he said, if need be, the best time to implement any fare hikes would be September of this year, which marks the end of the first quarter of fiscal year 2014.

Regan said for the budget to be balanced based on service cuts alone, the cuts would have to be so drastic they would “reshape the T as we now know it.”

The Massachusetts House of Representatives jointly with the state Senate presented a plan in late March that would add $500 million in new revenues by taxing cigarettes and gas. There were no hikes noted in that plan, and also no funds for capital improvement. Patrick has vowed to veto that plan.

The state Senate offered their own plan, which similarly falls short of the numbers put together by Patrick, according to the Boston Globe.