« Video: Senate panel hears defense budget requests | Today | Kennedys, Patrick couldn't deliver Mass. to Obama »

February 6, 2008

MBTA chief says agency is broke

BOSTON -- Massachusetts Bay Transportation Authority general manager Daniel Grabauskas says the agency is “broke,” despite last year’s fare hikes.

The MBTA is the agency in charge of public transportation in Massachusetts, including the commuter rail line that extends to Providence.

Grabauskas tells The Boston Globe that the $70 million dollars the MBTA raised by increasing fares on buses, trains and subways wasn’t enough to prevent an estimated $75 million dollar deficit in the next fiscal year.

Grabauskas said he’s ruled out another fare increase this year, as well as any cuts in service.
He said he wouldn’t discuss how the agency would fill the budget gap until its board discusses it publicly.

The MBTA has heavy debt, with 27 cents of every dollar it spends going to pay it off.

The agency has also been hurt by rising energy and labor costs and slow growth in the collection of state sales tax, it’s primary money source.

-- The Associated Press

Posted by Brandie Jefferson  at 9:53 AM | Permalink

Comments

Post a comment

Please be civil. Vicious comments, personal attacks and profanity won't be published. Name and email are required; email address will not publish.

Name:

Email Address:

URL:
Remember Me? YesNo

Comments: (you may use HTML tags for style)