Almost four years ago, the MBTA estimated the maintenance backlog at the transit agency would cost $7.3 billion and would require 25 years to address. Through the oversight of the Fiscal and Management Control Board, in 2017 the MBTA created an official strategic plan to meet this goal in only 15 years. Unfortunately, we have since learned the MBTA’s existing infrastructure maintenance needs now exceed $10 billion. Since the challenge of rebuilding the T is greater than we previously imagined, our expectations and funding plans also need to evolve.
Riders, public officials and the business community all understand that fixing the T will take many years and tremendous public resources. We all need the T to be successful, as it is more than a transportation agency. It is an economic engine that supports the economy and quality of life throughout the entire metropolitan region and the commuter rail network. The MBTA will continue to be essential for meeting our transportation, equity, accessibility and environmental carbon emissions goals. Therefore, if the cost to repair the current MBTA infrastructure exceeds $10 billion, this is merely a harsh truth and new motivation for collective action.
)MBTA Investments Generate Five-Fold Returns
Even with the rise of Uber and Lyft, the MBTA is the most efficient and cost-effective transportation option for commuters and is critical for transit dependent riders. Gov. Charlie Baker’s commission on the Future of Transportation recently reaffirmed importance of the MBTA for our future. The commission’s first recommendation said we must prioritize investments in public transit, through both existing maintenance needs and with expansion projects. They also called for a commitment to eliminate the deferred maintenance backlog by 2030, which is two years faster than the MBTA’s current 15–year schedule.
It is reasonable to be discouraged or distracted by size of the MBTA’s “state of good repair” backlog. Whether it is $7 billion, $10 billion or even $12 billion, these numbers are enormous, but we should always discuss this number with the positive economic impact we receive from the T.
A recent report from A Better City showed that the MBTA provides an estimated $11.4 billion in value to the Greater Boston region each year for both transit users and non-users alike. This is calculated through travel time and travel cost savings, vehicular crashes avoided and reduced auto emissions, all as a result of the MBTA’s $2 billion annual operating budget, so a more than five times return on our investment each year.
There are real reasons to be encouraged about the future of our transit system. Riders will begin traveling on new Orange Line subway cars this year. Within a few years both the Red and Orange lines will be served entirely by new vehicles. A commuter rail vision study is underway and by the end of 2019, 50 percent of the bus fleet will be less than three years old. The Green Line Extension project is moving forward under focused oversight and control.
Most importantly, the Baker administration’s current capital plan contains a historic level of funding for infrastructure improvements. All these ongoing initiatives are beginning to bear fruit and will make a noticeable difference for riders and the region.
Still, a 15-year infrastructure plan towards a $10 billion need will take time and additional funding. The MBTA today is clearly focused on spending their available dollars wisely and without delays. Under the capable leadership of General Manager Steve Poftak, we must expect the MBTA can deliver on its immediate spending plan goals, but they will still need additional financial support. Also, if there are any additional reforms necessary for contracting of this work and procurement, the MBTA and the Baker administration should give recommendations soon, before the state of good repair backlog grows any higher.
More Investment to Meet Future Needs
The question of how we fund 15 years and $10 billion of repairs is still unresolved but will require an answer soon. In the next few years, the MBTA has sufficient infrastructure funding in place, as a result of state and federal funds. However, funding has yet to be identified to meet the MBTA’s own strategic plan goals in the years beyond that.
One option is to ask the MBTA to increase its own borrowing and take out significant new debt, but we all know that increasing long-term borrowing comes with an increased the costs to the MBTA’s operating budget from debt service payments. A comprehensive transportation finance plan is needed to provide more money for transit infrastructure repair, operations, ongoing maintenance and targeted expansion to keep pace with current and future growth; otherwise we are putting the repair budget priorities at odds with the limits in the operating budget.
We are all expecting the MBTA to rebuild itself in to a safe, reliable and modern transit system, and also agree that Greater Boston needs the MBTA to succeed. Since we now know the accurate size of the T’s financial challenge, it is time to provide the agency with funding sufficient to do this work. The business community, riders and public officials and other stakeholders must come together to find solutions. Hopefully they can do this within months, not years.
Rick Dimino is CEO of A Better City.