Aug 5, 2008 12:00 pm US/Eastern
MBTA Head: 'Hefty' Fare Hikes Looming
BOSTON (AP) ―
The head of the MBTA says riders face "hefty" fare hikes as soon as 2010 unless the Legislature steps in to bail out the debt-ridden agency.
T General manager Daniel Grabauskas did not define what "hefty" means, nor did he say a specific fare hike proposal is on the table.
But he says the agency has raised fares every three years since 2001, and the last three fare increases have been in the 25 percent to 27 percent range.
Grabauskas tells The Boston Globe that the alternatives are cuts in service or state assistance with the agency's $8.2 billion in debt and interest payments.
MBTA spokesman Joe Pesaturo told WBZ that Grabauskas' statement is no different than what is said at every T-Board meeting, adding that funds aren't where they should be and that they aren't increasing.
"Revenue from new riders is not, by any means, covering the T's escalating energy costs," Pesaturo said in an e-mailed statement Tuesday. "This holds true for electricity (powers the subway) costs as well. Ridership increased 6.1 percent (from 2007 to 2008) but energy costs jumped more than 25 percent from $72 million to $98 million."
Pesaturo also added, "There is no fare hike on the table."
Grabasuskas has also publicly ruled out fare hikes next year.
However, Pesaturo said, "If some type of action is not taken in the next 12 months or so to address the T's structural financial problems, ($8.1 billion in debt) then the only options from which to choose will be: a significant fare increase, service cuts, deferring maintenance and modernization projects, etc."
An official with the T Riders Union says fare increases would hit low-income customers particularly hard.
(© 2009 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
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