MBTA FY 2025 Operating Budget Oversight Report

The advisory board published this on 6/6. No one here noticed?
https://cdn.mbta.com/sites/default/file ... -24%29.pdf

EXECUTIVE SUMMARY
The MBTA provided the following tables of revenue and expenses as a summary of
their proposed operating budget for FY25. The budget is in deficit, and only
balanced by the liquidation of reserve funds. Without action, the budget deficit for
the following fiscal year (13 months from now) is projected at just under $700
million. Without external support, the internal ability of the MBTA to close such a
deficit is nearly non-existent. In FY21, for example, the MBTA proposed draconian
service cuts to realize $142 million in savings. The FY26 deficit is projected to be
nearly 5 times greater. The service cuts and lay-offs needed to close a $700 million
deficit suggest an existential crisis for public transportation in Massachusetts.

Correct, FY25 deficit is $307M being papered over using reserves. FY26 is projected to be close to $700M, which is a huge jump for sure. Farebox recovery has gone from >40% pre-covid to 10% at the worst to 18.9% which is too low.

They can't quintuple the fares, there would be no riders remaining. They could increase the fares to match inflation, about 10% annually, or to match the increase in costs. Note that the Post Office, which is required to balance their budget, raises stamp prices annually. Increasing labor costs at 17% is unsustainable, also the overtime costs are increasing even faster! Headcount is increasing while ridership is essentially flat or falling.

Document refers to an existential crisis, also the advisory board complains they did not receive the numbers in time to do an in-depth analysis before they have to finalize the budget. MBTA reserves will be depleted at the end of FY25. Therefore by July 1, 2025, the MBTA will have to either get more state subsidy, make draconian cuts, borrow money to meet payroll, some combination, or go into receivership.