Rick Dimino
Massachusetts finds itself at a pivotal juncture in shaping the future of its transportation system. Our current infrastructure, especially at the MBTA, is in dire need of extensive repairs and upgrades. Conditions on our roads are exacerbated by mounting traffic congestion throughout Greater Boston. In addition, we face pressing challenges tied to carbon emissions, resiliency, budgetary constraints, equity concerns and their ramifications for our regional economy.
Rather than debating whether our current transportation system is currently in need of assistance, the question before us should be what it will take to make it all work effectively and set the stage for our future. A crucial initial step in this difficult journey is taking a comprehensive reassessment of our approach to transportation pricing.
Today, our transportation system in Massachusetts funding relies heavily on the gasoline tax, roadway tolls and, for public transport, rider fares. In the very near future as the numbers of electric vehicles and more efficient gasoline-powered cars on our roads continues to rise, using less gasoline, the revenue generated from gas taxes will inevitably decline. This shift to EVs will be a welcome step toward meeting our carbon emissions reduction goals, but it does pose a direct threat to an important traditional revenue stream that funds the maintenance and repair of roads, bridges and our transit system.
New Era Needs New Approach
Adapting to this new era of EVs requires careful consideration and planning. The Massachusetts legislature pushed for multiple proposals to create official commissions to look at the future of mobility and pricing. Gov. Charlie Baker rejected this concept twice and the most recent effort passed the state Senate this past spring, but then failed to become part of the final state budget in July. But the process for creating this analysis is less important than actually getting started on the work.
The commonwealth is facing both immediate and long-term transportation funding challenges. The MBTA is projected to face a budget deficit of approximately $150 million next year, followed by annual deficits exceeding $400 million in the years to come. These financial constraints in operations are separate from the critical need for new investments to repair subway tracks, enhance safety measures and comply with Federal Transit Authority mandates.
The Massachusetts Taxpayers Foundation predicts a budget gap of potentially $800 million over five years for all state government spending that is necessary to match federal infrastructure aid, which is heavily focused on transportation improvements. While the recently enacted Millionaires Tax surcharge could be a partial solution, it alone cannot address all these financial concerns on the horizon.
To shape the path forward, Massachusetts can draw insights from recent examples of changes in transportation pricing and their impact on commuter choices. Notably, during last year’s 30-day Orange Line Shutdown and this summer’s Sumner Tunnel closure, the MBTA offered free transit rides on bus and subway lines, free parking at commuter rail lots and substantial discounts on specific commuter rail lines. These initiatives resulted in increased ridership on both commuter rail and impacted subway lines, demonstrating the responsiveness of commuters and potential transit riders to fare adjustments and incentives.
Opportunity to Attack Congestion
A comprehensive examination of pricing across the entire transportation system represents an opportunity to adopt a modern, innovative approach that is in line with our climate goals. This could include permanent fare changes for commuter rail, buses and subways to encourage greater public transit use, tolling policy adjustments and new incentives to promote EV adoption.
When considering any changes to toll locations and roadway pricing, the primary focus should not be aimed only at new revenue but instead can also promote ways to reduce congestion, deliver regional equity and preparation for a future where EVs no longer contribute to the gas tax. Some ideas may not be feasible, but we should not be afraid of asking important questions.
These types of changes must be developed with a commitment to safeguarding lower-income residents from bearing an undue burden. This can be possible with means-tested fares and tolls, increased investments in public transit options and thoughtful implementation of time-of-day pricing. It is also worth reviewing airport, freight and trucking polices in the analysis to consider potential benefits and impacts of a new funding plan.
Avoiding this necessary analysis and implementation plans will only postpone the much-needed solution to the declining gas tax revenue, new carbon reduction goals and the impending fiscal cliff for the MBTA. A comprehensive transportation pricing plan, combined with updated procurement rules, capital delivery reforms and new incentives for commuters would position Massachusetts to adapt to the future but also accelerate the transformative changes our entire transportation system requires.
Rick Dimino is president emeritus of A Better City and a member of the MassDOT board of directors.
