Rick Dimino
In recent weeks, the legislature has begun to debate and act on pieces of Gov. Charlie Baker’s reform proposals for the MBTA. Given the importance of the T to the Massachusetts economy and the transit system’s performance this winter, the moment is ripe for both radical reforms and substantial investment to bring our transportation system into the 21st century.
The aspect of the governor’s proposal that has drawn the most attention is a new fiscal management control board, which would assume governance, oversight and financial management responsibilities for the T for a period of three to five years. A focused examination of the T, led by a group of experts in transportation finance and policy, makes a great deal of sense given the performance of the system this winter and ongoing issues regarding procurement, customer service and performance management.
However, the original proposal for a control board led to some concerns. In 2009, a wise decision was made to consolidate the vast majority of a disparate and fragmented transportation bureaucracy under the umbrella of a unified Department of Transportation, governed by a single board of directors. The original proposal for a control board, while well-intended, proposed a group of five appointees that were separate from the existing MassDOT board and had the potential to separate the governance of the agencies once again.
The legislative process has led to great progress on this central issue of governance. The Senate has begun to advance a promising framework that would alter the makeup of the control board to require that the secretary of transportation sits on the board along with two other members of the MassDOT board. The control board would also be required to present to the full MassDOT board at its regular meetings. This revised structure will allow for real scrutiny of the MBTA’s finances, management practices and operations while preserving an integrated transportation department. We are grateful to the legislature and the governor for advancing this compromise and are committed to its final enactment.
Investing While Reforming
Meanwhile, the House has advanced meaningful reforms to the T’s procurement practices and ability to contract with the right service providers. As the debate proceeds, more work is needed to continue to reform the arbitration and procurement process for the MBTA, while freeing the agency from the constraints of the so-called Pacheco Law.
The legislative framework currently being advanced also protects current MBTA fare policy and recent investments in the statewide transportation system. As we move forward, a conversation lies ahead about how we will finance the public transit, and overall transportation, system that the region’s future is demanding.
The combined population of Boston, Cambridge, Quincy and Somerville has grown by more than 8 percent since 2000. As metro Boston grows, so does transit demand. According to the Urban Land Institute’s 2012 report, “Hub and Spoke,” if ridership continues to grow at its current pace, the MBTA is likely to see an additional 367,000 riders each day by 2021. Already, segments of the Green, Orange, Red and Silver lines exceed their design capacity during peak periods of the average weekday. Moreover, more than 8,000 housing units and 10 million commercial square feet are currently being constructed within one half-mile of a transit station, with much more in the permitting pipeline.
If our economy is to grow, substantial new investment will be needed to tackle long-deferred maintenance, conservatively estimated to be $6.7 billion for just the MBTA, while making targeted investments in system capacity and expansion that will be required to keep up with forecasted growth. If we are not investing while we are reforming, we risk stalling our economic growth, reducing projected job growth, and see business and real estate investment go elsewhere. According to A Better City’s report, “The Cost of Doing Nothing,” transportation access is one of the top factors businesses use in their location decisions.
We are grateful to Baker and the legislature for seizing this unique moment to pursue innovative and essential reforms at the MBTA. As these reforms move forward and the fiscal management control board begins its much-needed work, the business community must be prepared to advance a proactive agenda of investment in our region’s economic growth. Our future prosperity depends on it.
Rick Dimino is the president and CEO of A Better City.
