The Massachusetts Bay Transportation Authority has proposed a 2012 fiscal year budget aiming to close a $127 million deficit, according to MBTA officials.
The economic downturn has created significant financial challenges for transit systems across the nation, resulting in unprecedented budget gaps. However, unlike other transit systems, General Manager Richard Davey and Chief Financial Officer Jonathan Davis said in a budget request presentation that the MBTA will not increase fare or cut service.
“As in the past, our goal this year is to continue to provide essential and affordable transportation services to our customers while at the same time meeting our contractual and statutory obligations,” the budget request stated.
The 2012 budget includes expense reductions of $5.6 million and non-fare revenue initiatives of $88.2 million. The budget includes only mandatory increases in cost, including healthcare and pension costs and increased maintenance costs.
The proposed initiatives to reduce expenses include elimination of all overtime increase requests, increased efficiencies in cleaning services and the elimination of the first tenet of the Customer Bill of Rights, which guarantees a free ride if transportation is delayed more than 30 minutes.
A new Information Technology Development Budget will invest in applications that will provide future cost savings and efficiencies.
The largest revenue initiative is a long-term lease of the North Station parking garage, which would require a down payment of at least $45 million. In addition, selling parking revenue to investors would result in a net benefit of $35 million in 2012.
Davis said the MBTA’s goal of increased ridership will result in a 3 percent increase in revenue without changing transportation fare.
According to a Feb. 22 article in The Boston Globe, advertising enhancements include more advertising at MBTA billboards, on the website and on the CharlieCard.
Davey said that some savings will be used to pay for the next-train countdown signs on the Red, Orange and Blue lines, the Globe reported.
Even if the proposed cost savings and revenue initiatives are adopted, a $33.2 million deficit will remain in the fiscal 2012 budget, Davis said.
While modern service reductions were considered, Davis said that the reduction in costs would not be worth sacrificing service, which would result in decreased ridership.
The budget is expected to be approved by early April.
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