MetroFuture Walks and Talks Presentation
November 16, 2011
Stephanie Pollack
Associate Director
Dukakis Center for Urban a...
MBTA BASICS
Boston is blessed with an extensive
transit system
The MBTA is extensive . . .
 The MBTA’s service district consists of 175 cities
and towns
 With a population of more tha...
. . . But the MBTA is old
Source: Maxed Out
The MBTA is an independent authority
 Since “Forward Funding” legislation was enacted in
2000, the MBTA
 Receives dedica...
The MBTA is also part of
MassDOT
Source: Maxed Out
MBTA ridership trends . . .
. . . May be looking up: Recent
trends in Average Daily Ridership
THE MBTA’S CURRENT
FINANCES
The MBTA is facing several different
financial challenges
 Addressing a structural deficit in its roughly $1.5
billion op...
Fare Revenues
$451m
28%
Non-fare
Revenues
$93m
6%
Debt Service
$405m
25%
Operating
Expenses
$1.21b
75%
Local
Assessments
$...
The MBTA’s FY2011 Operating Expenses
* includes THE RIDE, Suburban Bus, Commuter Boat, Private Carrier Bus.
($$ in million...
Projected cumulative operating
deficits
Source: D’Alessandro report
The MBTA’s Capital Budget
And the MBTA isn’t the only agency
with insufficient capital funding
Where does the money come from?
 Federal
 State
 Dedicated sales tax
 Other
 Local (assessments)
 Self-generated rev...
Federal funding for transit
A complicated state financing system
Source: Maxed Out
Was forward funding really a
failure?
Source: AASHTO 2011 report on state
transit subsidies (using FY2009 data)
WHAT’S HAPPENING TO
OTHER TRANSIT SYSTEMS?
Where do operating funds come
from?
Source: National Transit
Database
Where do capital funds come from?
Source: National Transit
Database
Comparison of transit fares
Agency City Subway Base Fare Local Bus Base Fare Last Fare Increase
MTA New York City Transit
...
What role do fare revenues play?
Source: National Transit
Database
The role of state subsidies
THE LOOMING FARE
INCREASE
MBTA fares: History
Year Fare
Fare in 2011
Dollars
1897 $0.05 $1.58
1918 $0.08 $1.36
1919 $0.10 $1.44
1949 $0.15 $1.35
195...
Prices for transportation and other
consumer prices
How riders pay
(commuter rail excluded)
Source: On-board riders survey
data from CTPS, analyzed by
Dukakis Center
How riders pay: Buses
Monthly pass vs. pay-per-trip
Source: On-board riders survey
data from CTPS, analyzed by
WHO WILL BE AFFECTED BY
FARE INCREASES AND
SERVICE CUTS?
Racial and ethnic composition of
MBTA ridership
Table 1.3:
Description Metro Population Trips by Bus Index
American Indian...
Income distribution of MBTA
riders
Source: On-board riders survey data from
CTPS, analyzed by Dukakis Center
Ridership frequency by mode
WHERE DO WE GO FROM
HERE?
The MBTA needs . . .
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  • Data Day 2012_Pollack_The State of MBTA Finances

    1. 1. MetroFuture Walks and Talks Presentation November 16, 2011 Stephanie Pollack Associate Director Dukakis Center for Urban and Regional Policy The State of MBTA Finances
    2. 2. MBTA BASICS
    3. 3. Boston is blessed with an extensive transit system
    4. 4. The MBTA is extensive . . .  The MBTA’s service district consists of 175 cities and towns  With a population of more than 4 million people  Covering 3,244 square miles  The MBTA has 262 “fixed guideway” stations (subway, light rail and commuter rail)  Plus 24 Silver Line “bus rapid transit” stations  Plus 8,500 bus and trackless trolley stops  The MBTA’s fleet includes  667 subway vehicles  1,074 busses and trackless trolleys  83 commuter rail locomotives and 410 coaches and cab cars
    5. 5. . . . But the MBTA is old Source: Maxed Out
    6. 6. The MBTA is an independent authority  Since “Forward Funding” legislation was enacted in 2000, the MBTA  Receives dedicated funding (from 1 cent of the sales tax)  Must balance its budget every year with available revenues  The MBTA has two budgets  Operating  Capital  Most capital spending comes from borrowing  “Pay as you go” has not panned out  The MBTA issues its own bonds  And is responsible for paying the principle and interest on those bonds  And relies on the same revenue sources to pay those bonds as it does for all other operating, maintenance and capital
    7. 7. The MBTA is also part of MassDOT Source: Maxed Out
    8. 8. MBTA ridership trends . . .
    9. 9. . . . May be looking up: Recent trends in Average Daily Ridership
    10. 10. THE MBTA’S CURRENT FINANCES
    11. 11. The MBTA is facing several different financial challenges  Addressing a structural deficit in its roughly $1.5 billion operating budget  Paying debt service  “Legacy” (pre forward funding) debt  New debt incurred to fund capital plan  Funding current and future capital needs  Regular maintenance  “State of Good Repair”  Strategic investment in enhancing and expanding the system
    12. 12. Fare Revenues $451m 28% Non-fare Revenues $93m 6% Debt Service $405m 25% Operating Expenses $1.21b 75% Local Assessments $150m 9% Dedicated State Sales Tax Revenue $767m 47% Revenue Recovery Ratio = 45% Contract Assistance $160m 10% The MBTA’s FY2011 Operating Budget: $1.62 billion
    13. 13. The MBTA’s FY2011 Operating Expenses * includes THE RIDE, Suburban Bus, Commuter Boat, Private Carrier Bus. ($$ in millions)
    14. 14. Projected cumulative operating deficits Source: D’Alessandro report
    15. 15. The MBTA’s Capital Budget
    16. 16. And the MBTA isn’t the only agency with insufficient capital funding
    17. 17. Where does the money come from?  Federal  State  Dedicated sales tax  Other  Local (assessments)  Self-generated revenue  Fares  Other
    18. 18. Federal funding for transit
    19. 19. A complicated state financing system Source: Maxed Out
    20. 20. Was forward funding really a failure? Source: AASHTO 2011 report on state transit subsidies (using FY2009 data)
    21. 21. WHAT’S HAPPENING TO OTHER TRANSIT SYSTEMS?
    22. 22. Where do operating funds come from? Source: National Transit Database
    23. 23. Where do capital funds come from? Source: National Transit Database
    24. 24. Comparison of transit fares Agency City Subway Base Fare Local Bus Base Fare Last Fare Increase MTA New York City Transit New York $2.50 $2.50 2011 Chicago Transit Authority Chicago $2.25 $2.25 2009 Los Angeles County Metropolitan Transportation Authority Los Angeles $1.50 $1.50 2011 Washington Metropolitan Area Transit Authority Washington $1.95 $1.70 (up to$ 5.25) 2010 Massachusetts Bay Transportation Authority Boston $2.00 $1.50 2007 Southeastern Pennsylvania Transportation Authority Philadelphia $2.00 $2.00 2010 New Jersey Transit Corporation Newark $2.25 $1.50 2010 San Francisco Municipal Railway San Francisco $5.00 $2.00 2011 Metropolitan Atlanta Rapid Transit Authority Atlanta $2.50 $2.50 2011 Maryland Transit Administration Baltimore $1.60 $1.60 2003
    25. 25. What role do fare revenues play? Source: National Transit Database
    26. 26. The role of state subsidies
    27. 27. THE LOOMING FARE INCREASE
    28. 28. MBTA fares: History Year Fare Fare in 2011 Dollars 1897 $0.05 $1.58 1918 $0.08 $1.36 1919 $0.10 $1.44 1949 $0.15 $1.35 1950 $0.10 $0.91 1951 $0.15 $1.35 1954 $0.20 $1.62 1955 $0.15 $1.21 1968 $0.25 $1.63 1980 $0.50 $1.50 1981 $0.75 $1.98 1982 $0.60 $1.43 1989 $0.75 $1.38 1991 $0.85 $1.41 2001 $1.00 $1.26 2004 $1.25 $1.47 2007 $2.00 $2.15 2012 (potential) $2.50 $2.47
    29. 29. Prices for transportation and other consumer prices
    30. 30. How riders pay (commuter rail excluded) Source: On-board riders survey data from CTPS, analyzed by Dukakis Center
    31. 31. How riders pay: Buses
    32. 32. Monthly pass vs. pay-per-trip Source: On-board riders survey data from CTPS, analyzed by
    33. 33. WHO WILL BE AFFECTED BY FARE INCREASES AND SERVICE CUTS?
    34. 34. Racial and ethnic composition of MBTA ridership Table 1.3: Description Metro Population Trips by Bus Index American Indian/ Native Alaskan 0.20% 1.6% 800 African American/ Black 7.50% 16.6% 221 Native Hawaiian/ Pacific Islander 0.02% 0.3% 1500 Asian 6.5% 8.3% 128 White (Non-Hisp.) 79.2% 66.1% 83 Other 6.6% 7.1% 108 Hispanic/Latino** 12.5% 9.0% n/a Table 2.4: Subway Ridership Demographics compared with the Metro Population Description Metro Population1 Trips by Subway Inde American Indian/ Native Alaskan 0.2% 1.2% 600 African American/ Black 7.5% 10.0% 133 Native Hawaiian/ Pacific Islander 0.02% 0.3% 1500 Asian 6.5% 9.2% 142 White (Non-Hisp.) 79.2% 74% 93 Other 6.6% 5.3% 80 Hispanic/Latino** ** 7.0% n/a Source: American Community Survey and on-board riders survey data from CTPS, analyzed by Dukakis Center Table 3.3: Description Metro Population1 Trips by Commuter Rail Index American Indian/ Native Alaskan 0.20% 1.0% 500 African American/ Black 7.50% 4.2% 56 Native Hawaiian/ Pacific Islander 0.02% 0.2% 1000 Asian 6.5% 5.4% 83 White (Non-Hisp.) 79.2% 86.3% 109 Other 6.6% 2.9% 44 Hispanic/Latino** 12.5% 3.2% n/a
    35. 35. Income distribution of MBTA riders Source: On-board riders survey data from CTPS, analyzed by Dukakis Center
    36. 36. Ridership frequency by mode
    37. 37. WHERE DO WE GO FROM HERE?
    38. 38. The MBTA needs . . .

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