Blue Mass Group

Reality-based commentary on politics.

Transportation Finance Commission Finally Releases Report

By

That’s leadership!

It isn’t like this report was a surprise. I see now why it was delayed from its original anticipated date of October 2006. I would hate to be the one in charge when this came out. I have written about some of the things the Commission wrote about the MBTA funding problems. I didn’t know and was really shocked to see the following:

  • The largest components of operating cost increases were in wages and fringe benefits;
  • “Most pension plans allow an employee to retire at an earlier age, but with a reduced benefit. However, MBTA employees may retire and immediately collect full benefits after 23 years of service, regardless of their age.  The result is that the MBTA may be carrying retirees, with full pensions, for three or four decades – in many cases longer than the employee actually paid into the system….In fact, the retirement benefits package makes it more attractive to retire early than to stay employed.  MBTA retirees are able to match the take-home pay of their most lucrative years while they were still working because MBTA pensions are state tax-free.  Furthermore, they are eligible to receive Social Security with no offset from their pension payments.  Over the past three years about 10 percent of new (non-disability) retirees are under 50 years of age and almost one-third are under 55.”
  • “Health care costs are a particular problem.  The MBTA’s health care costs are 34 percent higher than the median surveyed transit agency for single premiums and 44 percent higher for family premiums.  The combination of early retirement and 100 percent employer-paid health care premiums for retirees with no co-pays puts enormous pressure on the MBTA’s health care budget.  It is striking that retirees account for almost half of the MBTA’s health care costs, and even more striking that almost two-thirds of the MBTA’s retiree health care costs are spent on retirees who are under age 65.  These are the most expensive years to cover – costs are escalating because of age, but the retirees are not yet eligible for Medicare.  It is critical for the MBTA to gain control over these escalating health care costs.”

    These operating expense problems are in addition to the structural problems with sales tax revenue, expansion, and debt service. The report seems to make it painfully clear that the Commonwealth requires leadership on the transportation issue and a coordinated state plan for solving the problem. Patrick’s initial response doesn’t suggest at this point that he’s the one to do it.

    Reading it also makes me less sympathetic with grouchy MBTA employees.

    Cross posted.

    Please share widely!
    fb-share-icon
    Tweet
    0

    • Comments

    1. Whoa!  That is HUGE.

      <

      p>
      Many state employees who have worked in the Dreaded Private Sector cash out shortly after vesting, so they can have health ins. access but not goof with what are usually higher Social Security payments.  but with NO OFFSET – and a 23 year window of service – why, this is just a rape of the system, and makes Fat Matt look like a piker with those loosey-goosey sick time buy-outs.

      <

      p>
      A WARNING TO ALL GOO-GOO’s!!!!  These ‘independent’ authorities were created to eliminate the pernicious influence of political hackery.  HAHAHAHAHAH.  Makes me wonder what the MDC had on the books when Mitt cashed it out!

    2. Sen. Robet Hedlund was on the radio this aft. He stated that with this transportation/infrastructure funding issue and several other financial crises loming that this state will be mandated to raise revenue through increased taxes, fees, tolls on various roads like route 3 ( to register a car you will be required to be transponder equipped for toll assessment)and increased gas taxes. Sen Hedlund further that if this is not done (general widespread increase in taxation) the state will see a plummet in its bond rating and could face bond and loan defaults within two years. The state could actually go into receivership.
      The rainy day will be wiped out and the state and local communities will be down to essential services and god only knows what will happen with the schools.

      <

      p>
      The state legislature is directly culpable. They alone are responsible. They have failed miserably and utterly in their fiduciary responsibility.

      <

      p>
      This is the time for Gov. patrick to put his money where his mouth his. He must take direct, swift, and resolute action to staunch this hemmorage or we will be in perilous waters very shortly. This is no longer partisan nonsense and bickering. This is survival for the young folks and kids in this commonwealth.

    3. First of all, yes. The T worker’s union has waaaay too much influence on Beacon Hill and their pension benefits are ridiculous. It’ll take a lot of political capital and probably more than one sacrificial lamb before anything can be done about that.

      <

      p>
      As to the snarky comment about the Gov’s leadership. It’s smart to recognize that the corner office isn’t going to have all of the answers and solutions. By reaching out to people who have expertise with the state’s transportation systems, flaws and all, the Governor is looking for the best approaches to solving the problems.

      <

      p>
      These aren’t issues that will be fixed by 2010, and it’s likely that any solutions will have to function under the guidance of at least one more Governor down the road. Deval is making the right move by organizing and mobilizing people within the community to invest themselves in the welfare of Massachusetts.

      <

      p>
      So, yes. That is leadership.

      • ought to be a place where people from varied backgrounds can start brainstorming ideas from outside the Beacon Hill culture to curb the problem.

        <

        p>
        It’s worth noting that the State House News Report had this assessment:

        So, if Patrick raises Turnpike tolls, raises the gas tax, reorganizes the transportation bureaucracy like a madman, benefits from an economy way more robust that projections suggests, and figures out how to pay just for the upkeep and maintenance of the state’s highways and bridges – at that moment, he’ll be free to try to do something about the issue that has the state’s brightest young people to falling all over themselves to get to Oregon or Florida. Never mind Boston’s battlezones, or the ancient computers in classrooms statewide, or energy policy. Or water pollution or immigration or the coming pandemic. Or universal health care. That’s how big the challenges are.

        For all the talk of drapes, Caddy’s or whatever, we’ve got bigger fish to fry, and it’s time to really start thinking about what this community can do to collectively figure out a way out of this fiscal mess and push that agenda.

        <

        p>
        So to start, it’s been suggested elsewhere that we raise the gasoline tax. I’ve been somewhat skeptical of such a move because I think it would hurt lower income workers who still have to drive to their jobs, whereas upper class can afford it. But overall, there seems to be a trend where drivers will eat higher prices so maybe it’s worth it for the state to get some increased revenue from a gas tax to pay for the transportation problems.

        • Obviously the first thing to do is to cut the waste. I’m not through reading over the report yet and hopefully I can comment on that later. This is (so far) very scary wasting of funds.

        • Keep in mind that the MBTA prices just went from $1.25 to $1.70 for the T ($44 to $59 monthly).

          <

          p>
          I agree that the MBTA pension system is awfully generous.  I have no idea what the wages look like — are they getting paid less now to get more later?  Beats me.

          <

          p>
          Wages and benefits aside, I suspect that the MBTA could really benefit from some operations fat cutting.  Hell, just look at lighting.  There’s an insane number of incandescent bulbs on the green line, both in stations and between stations.  Maybe there’s some technical reason that prevents them from switching to CFs (tolerance might be one), but I doubt it.

          <

          p>
          That being said, there’s no question that the drivers are going to get hit somewhere — the costs of maintaining the road infrastructure are going up.  There’s also no question that a system with no road-use tolls is more fair than an ad hoc system.  As I’ve written, I’d love to see
          (a) eliminate the Mass Pike Tolls
          (b) raise the gas tax statewide to be revenue neutral to lost Pike revenue
          (c) raise the gas tax a little more than that (the part that refers to the post above)
          (d) raise the gas tax within 495 another penny or two.
          (e) raise the gas tax within 95/128 a penny or two on top of that.

          <

          p>
          Massachusetts’ gas tax is lower than many surrounding states (NH the big exception), and in addition to revenue shortages, all that CO_2 ain’t no good for nobody.  I argue for (d) and (e) because as you get closer to Boston, your number of transportation alternatives grow.  I’d take the additional revenue from (d) or (e) or something close to that, and I’d use it to pay for MBTA special projects — expansion of commuter rail, subway/streetcar, UrbanRing, handicap accessibility projects, etc.

      • That’s passing the buck and abdication of responsibilty.
        That’s how the legislature works. Pass it on to committee. Sweep in under thre rug. Hell will freeze before there is “consensus”. The governor must take some leadership ie demonstrate the problem, point to the legislature, and say you will work with me or against me, but I’m going to make changes. Worked for Weld. The legislature has got to be held accountable.

        <

        p>
        Apparently from reading this mornings Globe that the governor is presently concerned with stem cell research and Sudan. I think we currently have more pressing issues in Massachusetts.

        • So the infrastructure problems just happened January 2nd?  Weld, Celucci, Swift and Romney share the responsibility with the legislature.

          • My “snarky comment” about leadership is not about forgetting Weld, Celucci, Swift and Romney’s share of the responsibility with the legislature. Regardless of who is “responsible” the situation requires action and leadership. Patrick’s response was to refer a commission’s report back to more commissions and study.

            <

            p>
            It was no secret, at least re the MBTA, that forward funding was not working, that sales tax revenue was low, that there were infrastructure problems. Patrick should have been prepared for this, and I thought we expected a governor who would govern with decisive leadership and new vision.

            <

            p>
            I was a Patrick supporter but have yet to see him actually govern.

            • The governor in this state is a figurehead. A powerless puppet. The senate president and the house speaker run this state. They pass a law, the governor vetoes it and the over ride. They override everything. It’s their way or no way.f the governor attempts to make changes, like the EBC, then the legislature takes that power away the next day. The legislature is directly responsible for this looming disater. The incestous relationship with lobbyists(read former legislators, conyism, hackdom, and outright theft are what are reps and senators are good at. When the spotlight gets thrown on them they point to everyone else to lay blame. No one is responsible for anything on Beacon Hill.

              <

              p>
              You never heard out of my mouth that our former governors weren’t anything other than a tremendous disappoinment and a disgrace. They should have had the guts to spend their entire trem in office and they deserted. They left the ship of state to founder. Shame on them and I hope they spend the remainder of their lives standing in an unemployment line. All that being said, our legislature is the reason we are drowning in red ink. If you don’t want to come to grips with that, then you are part of the problem and not the solution. New Hampshire doesn’t have this problem and we damn well know why! 

            • Reading the press release he does state that he wanted the commision, business community, the lege and transportation to get together to agree on a long term solution. 

              <

              p>
              It’s a kind of statement he makes often.  What do we do about this?  Well, lets review with ….. and decide a course of action.

              <

              p>
              It’s been his style so far, but maybe he does want input before making a decision on what to do instead of a knee jerk reaction.  He knew that we could leave half done projects during the spring and summer when most of the work is done, so he filed a bond to pay for those projects.  Plus if we would lose out on a billion dollars in federal matching funds.  He also noted that they have a long term spending plan that will be released in the next few months.

              <

              p>
              So it’s not like he is doing nothing.  He was able to have the legislature pass a bond that Romney couldn’t do last year.

    Archives