MBTA has $9 billion worth of debt

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March 7, 2013, 9:25 am
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(NECN) - The possibility of more fare hikes or service cuts are on the table when it comes to the MBTA. The agency's general manager, Beverly Scott, is here.

MBTA's deficit reduction plans for 2014:
33-percent fare hike
Bus: $1.50 rises to $2.00
Subway: $2.00 rises to $2.60
RIDE: $4.00 rises to $5.25

Why is there such a large deficit for an agency that so many people use and rely on?

“Let me tell you, this is historical, it’s a structural problem. The bottom line is that the ‘T’ inherited roughly, we’ve got $9 billion of debt. So literally the fact that we inherited so much of the portion of the Big Dig debt to tell you the honest to God truth,” Scott says. “The agency has been laboring under this for well over a decade. We continue to age. Our infrastructure continues to get older. Expenses go up and so this is what you call a structural problem and it is going to take a structural fix.”

Will we ever come out on the other side of this?

Scott says this isn’t an annual ritual but now is the time to make the big decision to get the money to fix the problems.

Thursday morning, House Speaker Robert DeLeo spoke to business leaders and addressed the MBTA budget deficit:
“Before we commit any new dollars to our transportation system, we will have to look at every opportunity there might be to take out any unnecessary costs…we are committed to developing…a well thought-out and fair new source of revenue to help fund a transportation system.”

Watch the attached video for more.

Tags: mbta, debt, deficit reduction, service cuts, fare hikes, general manager beverly scott
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