MBTA looks for new way to boost revenue, lower long-term debt

To help subsidize the T’s debt, a Massachusetts Bay Transportation Authority proposal suggests places such as Boston University, Tufts Medical Center and Fenway Park pay annual fees to the MBTA.

The MBTA proposal would require institutions that “benefit tremendously” from the public transit system to pay various fees to the T. If enacted, MBTA fare increases would be limited at 25 percent, with subway fares jumping from $1.70 to about $2.13, and no services would be cut.

The MBTA Advisory Board pitched the ideas last Wednesday to shift part of the T’s debt to area institutions that benefit from the transit system’s services.

The MBTA Advisory Board proposed the plan as an alternative to previous Massachusetts Department of Transportation proposals that would include 33- to 43-percent fare hikes and service cuts.

The board suggested that the MBTA implement a “station-naming program” that would charge institutions such as Harvard University, BU and the Prudential Center for the MBTA to continue using their names in the names of T stops.

These stations “are all named after viable institutions that surely benefit from having their name attached to a station and should pay for this privilege,” the board said in their review of the MassDOT fare increases.

Boston University spokesman Colin Riley said the school, which does not pay the MBTA for the use of its name in stations such as BU East and BU Central, would have to review the proposals.

Northeastern University would also be charged under the proposal for the Northeastern University station on the Green Line’s E route.

“We’re closely reviewing the different proposals put forth by the MBTA and various state officials,” Northeastern spokeswoman Kara Shemin said via email. “Because these proposals are still in the idea stage, it is premature for the university to comment one way or the other.”

Large venues that use the T system to transport “thousands and thousands of citizens to and from special events such as Red Sox, Bruins and Celtics games,” would have to pay the MBTA as well, as “these special events constitute mini-rush hours that . . . strain the existing system and cost millions in overtime,” according to the board’s review.

The board proposed that “large public performance venues should contribute [to the MBTA] in the form of a $0.50 surcharge on all tickets at venues with capacities over 1,000 persons.”

The Advisory Board offered its plan as a counter plan to the previous scenarios presented by the MBTA.

The MBTA’s previous proposal was “enormously unpopular,” said Paul Regan, the executive director of the advisory board, adding that the board’s newest proposition would be beneficial to the public and the MBTA.

“The response to these [older proposals] has been overwhelmingly and loudly negative,” he said. “The Advisory Board proposal will bring all people who benefit from public transport to the conversation.”

The MBTA must pick a preliminary budget by roughly the second week in March before choosing its final budget by April 15, Regan said.

He said the MBTA’s future decision process is “impossible.”

“The people who work there all the time don’t want to be in the business of curtaining service,” Regan said. “They know how reliant people are on the T, even on unpopular routes. People have made decisions on housing and work based on public transport.”

Regan said fare hikes are preferable to service cuts because reviving a cut service line is an impossible, “Herculean” effort.

“People understand when prices go up, but when service goes away . . . decisions about where you work and where you live become that much more difficult,” he said. “When you ask people to move or to change jobs, that is too much of burden for the typical rider.”

The proposal’s strengths lie in its ability to “spread the pain,” said Michael Widmer, the president of the Massachusetts Taxpayers Foundation.

“The riders have been concerned, rightly so, about drastic service cuts,” he said. “The best part about this new proposal is that it preserves most of the services.”

The MBTA Board of Directors will consider all comments and proposals they receive before they take the final vote in April, said MBTA Spokesman Joe Pesaturo in an email.

“MBTA General Manager Jonathan Davis appreciates the advisory board’s diligence and hard work,” he said. “He looks forward to discussing their proposals with the board’s executive director.”

The proposed scenarios are designed to work for just one year, according to the board review.

“Time is running out,” Regan said. “We hope that young leaders in Boston area understand that they have a role and stake in this. I hope they stay active and involved.”