An MBTA train pulls into a stop on Commonweath Avenue near Boston University in Boston. (AP Photo/Elise Amendola)
By MATT MURPHY
BOSTON — A key House lawmaker on Monday expressed some concern about tapping a statewide fund to bail out the MBTA, raising the possibility of diverting additional dollars to regional transit authorities that could force the T to reconsider higher fare hikes or deeper service cuts.
Rep. William Straus, a Mattapoisett Democrat and co-chair of the Committee on Transportation, said that the Patrick administration’s plan to use a $51 million surplus in the state’s vehicle inspection trust fund to balance the debt-laden MBTA budget fails to take into account the money contributed by drivers outside of Greater Boston.
“That’s a focus I’d like to see, which is a little different than what the governor has proposed,” Straus told reporters after a three-hour hearing on the governor’s bill. “If the logical reason that justifies this money in particular going to the MBTA is the benefit that it provides for air quality improvements as a mass transit agency, then I think it’s hard to deny to the RTA’s, whether they’re looking at fare hikes or not, the similar benefit that people all around the state are contributing when they get their cars inspected.”
Straus said he did not have a specific amount in mind to help regional transit authorities, but said he was mindful that the Legislature’s ultimate decision could prompt the MBTA to raise fares even more than they did last week.
The MBTA board approved a budget that combined a 23 percent fare hike with some service reductions as part of its plan to close a $159 million budget gap. The use of the fees is among $61 million in additional reforms requiring legislative approval to avoid a bigger impact on riders.
William Straus
“There’s no question that what the Legislature ultimately does on this question affects the viability of their overall plan,” Straus said.
The Joint Committee on Transportation, co-chaired by Straus and Sen. Thomas McGee, held a three-hour hearing on Monday to consider Gov. Patrick’s proposal (H 4011) to balance the MBTA budget, in part, with $51 million in surplus funds expected to accumulate in the vehicle inspection trust fund before the end of fiscal 2013.
The money in that fund, which accrues as drivers pay the $29 annual fee to have their vehicles inspected for emissions, is typically spent on air quality projects. The Department of Environmental Protection receives 15 percent of collected fees, and would take in about $9 million from the $60 million surplus as well.
Transportation Secretary Richard Davey testified for over an hour, fielding an array of questions from lawmakers about aspects of the 190-section bill that goes beyond solving the MBTA’s budget woes.
He continually reminded legislators that while the proposal on the table would balance the MBTA budget for fiscal 2013, a long-term funding solution would be necessary to avoid the same scenario next year when the T is expected to face a $110 million deficit.
“Really, what we’ve proposed, this is the last rabbit out of the hat and next year we’re going to be back if we don’t have a long term solve with cuts in service and fare increases again. This year is important. We need the help to get through this year, and we’re going to need the Legislature’s help for a long-term fix as well,” Davey said.
Defending the appropriateness of tapping a statewide fund to bail out the Boston-centered MBTA, Davey said that 75 percent of the fees deposited into the trust fund come from drivers within the MBTA’s service territory.
Richard Davey
“Poor air quality knows no boundaries so I think we have a collective interest in the Commonwealth to ensure the T’s success,” Davey said.
Davey said that if the Legislature chose to divert 25 percent of the trust fund surplus to RTAs, the T would have to go back to the drawing board to close the new budget gap.
“We’d have to (close the gap) through either additional fare increases or service cuts so we don’t have a contingency in place. We’d have to go back to our board and talk about how we could close that. It’s a position we prefer not to be in,” Davey said.
Both Straus and McGee indicated that the committee would likely break Patrick’s bill into pieces, focusing first on the sections that directly impact the MBTA budget, including the trust fund transfer and a plan to seek federal Medicaid reimbursements for eligible passengers using the RIDE, a paratransit van service. The chairman said it could be three to four weeks before a bill emerges from committee for consideration by the House and Senate.
The 74-page bill filed by Patrick also proposes increased penalties for fare evasion, authorization for MassDOT to advertise on spaces such as the Registry of Motor Vehicles website, and a restructuring of the Rose Kennedy Greenway Conservancy board.
Patrick has proposed making his secretaries of transportation and energy and environmental affairs voting members of the board, while Rep. Peter Durant on Monday filed legislation in response to reports of high executive salaries to eliminate the conservancy’s control of the park in favor of an unpaid management board operating under the Department of Conservation and Recreation.
The testimony heard Monday at the hearing was near universal in support of the administration plan to direct surplus vehicle inspection money to help the MBTA, though some senior advocates and transportation organizations urged the Legislature to do more by tapping into the more than $1 billion in the state’s “rainy day” account to avoid the cuts and fare hikes on the table.
Rafael Mares, of the Conservation Law Foundation, suggested using state reserves or borrowing money to provide additional resources to regional transit authorities and the MBTA.
“Those are not things you do lightly, but this is an emergency,” Mares said.
Despite expectations that the House will follow Gov. Patrick’s lead and propose tapping the “rainy day” fund for $300 million to $400 million to balance the overall state budget when it presents its plan on Wednesday, Straus said he and McGee were not considering using the fund for the MBTA at this time, noting the House rejected the use of reserves during a recent debate over boosting Chapter 90 road and bridge repair funds for cities and towns.
The Massachusetts Senior Action Council argued that seniors and the disabled are being disproportionately hit by fare hikes and service cuts, particularly those who use the RIDE where the standard fare will increase from $2 to $4. Protestors who have been sleeping on the State House steps since last week also blamed costly interest rate swap agreements for the T’s financial problems, calling on lawmakers to force the banks to renegotiate the terms of the debt payments.
Lawmakers on the committee also had parochial concerns in mind. Calling her constituents “the forgotten ones,” Sen. Jennifer Flanagan said, “The people who ride on my line, the Fitchburg line, have the longest ride, and we have the least amount of service. I do appreciate the work that you’ve done. I really hope that when we consider additional fare increases and cuts it’s important to note how long it takes us to get here,” Flanagan said.
Sen. Robert Hedlund raised questions about ferry service and the level of state subsidy for different modes of public transportation. Davey said that recommended fare hikes for ferry service will make that the least subsidized public transit option. The RIDE, of the other hand, will generate just $2 million to $3 million in fares this year for a $100 million service, he said.
While Davey said the Federal Aviation Administration would likely have a problem with transferring control of the ferries to the Massachusetts Port Authority, he said discussions are ongoing about giving Massport greater control over the Silver Line.
“The great tragedy of all of this is what we heard from our customers is that they want more. There’s not a company on the planet that wouldn’t like this problem. Unfortunately, we can’t deliver.” Davey said.
When Rep. Michael Finn, D-West Springfield, raised concerns that the Springfield regional transit authority is also looking at raising fares and cutting service without momentum for a state bailout, Davey said he has directed his staff to try to find $500,000 to $700,000 in one-time funds that could be used in Springfield to offset cuts.
Asked after the hearing about the prospect of the Legislature agreeing to the administration’s budget plan, Davey said, “I’m hopeful.”