Why is the MBTA raising parking rates?
As is well known, the MBTA is facing unprecedented fiscal challenges. In Fiscal 2009, the Authority is facing its most daunting financial challenge since the legislature established a new mechanism for funding the MBTA almost nine year ago (so called “Forward Funding”). A penny from the sales tax is dedicated to the MBTA. Sales tax collections have underperformed against all of its historical averages since 2000, proving itself as an insufficient funding source. At the same time, the MBTA has over $8 billion in debt, predominantly for projects built in the 80s and 90s, many of which were project mitigation commitments for the Central Artery project. The MBTA has also seen significant increases in fuel costs, and Union wages as a result of a recent arbitration. Q: What has the MBTA been doing to raise non-fare revenue? A: In light of these fiscal challenges, it continues to be critical that the Authority grow new and existing non-fare revenue (real estate transactions, advertising, etc.
