MBTA carries highest TA debt in nation
Bill would clear $2.9B from books
Scott Wachtler, Correspondent, BostonNOW
June 8, 2007

The MBTA carries the highest transportation authority debt in the country.

The nation's fifth-largest transportation authority devotes 27 percent of its operating budget - almost $363 million this year - to paying down its $5.2 billion debt.

Legislators, advocacy groups and T riders testified in front of the Joint Committee on Transportation at the Statehouse yesterday, pushing for a bill that would eliminate $2.9 billion of the MBTA's "staggering and unsustainable debt," Eric Bourassa of Massachusetts Public Interest Research Group said.

"[Debt relief] will put the MBTA more in line with other transportation authorities in the country and free up money for new projects," Bourassa said.

State Sen. Jarrett Barrios, co-sponsor of the bill, spoke at a press conference before the hearing to explain why the MBTA is in need of the debt relief.

"The T's debt grows every year," Barrios said. "We need this law to pass so the T can be on firm financial footing."

According to Barrios, almost half of the current debt was "given" to the MBTA back in 2000 when the Central Artery's debt was shifted to the MBTA.

MBTA
Debt consequence

Top 2 MBTA deferred maintenance projects due to debt:

1) New Red Line No. 4 Cars
Estimated cost: $220 million
Consequence of inaction: Increased maintenance cost on Red Line's No. 1 car fleet which has already surpassed its useful life

2) Orange Line infrastructure analysis for the introduction of new trains
Estimated cost: $49,317,591
Consequence of inaction: Necessary infrastructure will not be ready to allow Orange Line to accommodate projected increases in ridership.

(Sources: MBTA and MASSPIRG)