The MassDOT Board and Transportation Secretary and CEO Richard A. Davey today announced a plan for the next generation of transportation investment in the Commonwealth: The Way Forward: A 21st Century Transportation Plan.
The long-term financing plan shows that the state needs $684 million to operate the same system we have today. The plan calls for an additional investment in our transportation assets of $5.2 billion over ten years in road and highway repair in order to reduce the number of structurally deficient bridges and ease congestion on major arteries throughout the state; $3.8 billion to invest in existing transit services; and $275 million for Registry and airport maintenance. These investments responsibly maintain the current transportation assets we have today.
In addition, the plan identifies a number of high-impact transportation projects across Massachusetts that, if built, will create thousands of jobs and spur economic development across the Commonwealth. In all, the plan identifies a $1.02 billion average additional need each year to create a 21st-Century transportation network.
“The plan released today is a stark, clear-eyed, non-partisan presentation of the facts,” said Governor Deval Patrick. “If we are serious about improving our transportation system for a generation, then we have to be willing to make the necessary investments. We must invest in transportation, not for the sake of transportation itself, but for the jobs and economic opportunity it creates.”
“Transportation is the enabling network of our economy, creating and supporting jobs in all regions of the Commonwealth,” said Lieutenant Governor Timothy Murray. “The MassDOT Board has outlined how far we've come and how far we have to go to ensure a safe, reliable and regionally equitable transportation network. Now we all need to work together to make this vision a reality.”
The plan addresses systemic budget deficits at the MBTA, MassDOT and the 15 Regional Transit Authorities, much of which has been caused by the debt burden related to the Central Artery.
“We have spent the last year engaging our customers, the business community and various stakeholders in a conversation about what kind of transportation system they want,” said MassDOT Secretary and CEO Richard A. Davey. “What is clear is that we can’t afford the system we have today, much less the system we all want. This plan clearly articulates our vision for a 21st-Century Transportation system and the steps we must take to achieves that.”
Additional operating needs include:
MassDOT - $371 million in FY14; $4.4 billion over 10 years
The proposed new funding will allow MassDOT to end the decades-long practice of funding operating costs – personnel, rent, utilities, lawn mowing, etc – with borrowed funds. Currently, for every dollar MassDOT spends today on these items, it pays $1.76 in principal and interest costs. Appropriately paying for these items with operating funds will save the Commonwealth money over time and free up capital dollars to invest in infrastructure improvements.
The additional funding will also allow MassDOT to sufficiently fund its snow and ice operations at an appropriate level based on the average five-year cost and support and maintain its new capital investments.
Regional Transit Authorities -- $100 million in FY14; $1.1 billion over 10 years
This additional investment will allow the RTA’s to end the practice of borrowing, with interest costs, to fund annual operating costs by instead forward-funding each agency. Beginning in FY15, the additional $100 million will be used to expand RTA service by adding hours of operation, increasing frequency on existing routes and adding new service.
MBTA - $166 million in FY14; $3.2 billion over 10 years
This new investment will allow the MBTA to close its current and projected budget deficits, much of which is caused by the debt burden related to the Central Artery public transit commitments. Beginning in FY2014, $25 million in annual operating funds will also be available to provide modest service enhancements such as possibly expanding evening hours, restoring weekend service in areas that have been cut and improved customer service.
In addition to responsibly paying for our daily operations, the 21st-Century Plan calls for a $13 billion infusion of capital investment funds. These funds, which would supplement the Administration’s current capital investment plans, will allow MassDOT to address a backlog of deferred maintenance and improve current assets in order to reduce congestion on our roads, curb delays and minimize crowding on our trains and buses and improve customer service at our facilities.
In 2007, the Transportation Finance Commission issued a report pegging our maintenance funding gap at $15 billion to $19 billion over 20 years. The investment proposed in the 21st-Century Plan is an aggressive plan to eliminate that backlog.
The list of investments over 10 years is available after the break.