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Feb 6, 2008 11:40 pm US/Eastern
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MBTA: Despite Fare Hike, 'We're Broke!'
BOSTON (WBZ) ―
Despite recent fare hikes on subways, trains and buses, the head of the MBTA says the entire system is broke!
Dan Grabauskas tells the Boston Globe that despite raising $70 million from those fare hikes, the T is facing an estimated $75 million deficit for the next fiscal year.
The good news: Grabauskas told the newspaper he has ruled out another fare increase for this year, as well as any cuts in service.
One commuter rail rider we talked to was shocked especially after fares being raised just last year.
"How is that possible with all the fare hikes," said Myra Pueschel. "Who is getting all these millions?"
Christy Shattuck used to take the commuter rail into Boston from Lowell. She got so frustrated with the T that she now drives to Alewife and takes the Red Line.
"They have not improved the service, they need to stop thinking about WIFI and Radio and all this other stuff and concentrate on cleaning up the stations, cleaning up the cars, adding more CARS, being on time and making it worth our money, because right now its not," writes Christy. "For the amount of $$ each commuter pays per month they are raking it in, these are minor things that have to be fixed and addressed... you can not improve something that is not working right to begin with, you need to fix the issue and then you can improve."
They were just a couple of examples of the many commuters who are upset with the T and skeptical about the agency's deficit.
Terry Ott emailed us this question: "$75 million shortfall - I wonder how much of that money goes to the board and officers?"
While Wilminton's Brian Coffey wrote "This is just more proof of the lack of accountability and waste of taxpayers money... the taxpayers and riders cannot and should not pay the price for poor management that would never make it in the private sector."
The MBTA has heavy debt, with 27 cents of every dollar it spends going to pay it off.
According to the paper, the agency has also been hurt by rising energy and labor costs and slow growth in the collection of state sales tax, its primary money source.
Grabauskas says he won't discuss how the agency plans to fill the budget gap until after the T's board meets to discuss it publicly.
The T last hiked fares in January of 2007.
Bus fares rose 35 cents to $1.25. The cost to ride the subway rose 45 cents to $1.70 for people using the Charlie Card. It costs even more for anyone not using the plastic cards because of a T surcharge that tacks on an additional 25 cents for bus rides and 30 cents for subways and trolleys. Most commuter rail passes went up by about 22%.
At the time that the fare hike was announced, Grabauskas said MBTA officials believed the fare hikes were the only way to eliminate a $35 million budget deficit.
The T also increased fares in 2004.
The Globe reports that the T's board of directors will meet on Thursday, and is expected to review its budget at a meeting in March.
What do you think about the T's budget shortfall despite fare hikes?
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(© 2008 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)