MBTA special panel calls for Fiscal Control Board to help fix “management failures”

Written by Jenifer Nunez, assistant editor

Massachusetts Gov. Charlie Baker's special panel tasked with reviewing the Massachusetts Bay Transportation Authority's (MBTA) functions and practices outlined a plan of action to reform and improve the authority. The panel's recommendations include creating a five-member Fiscal and Management Control Board, as well as the creation of one, five and 20 year spending plans after the group "uncovered massive structural and management failures that are on pace to bankrupt the system if left unchecked."

“Massachusetts deserves a reliable, well-managed, cost effective transportation system and this in-depth report offers a plan of action to responsibly pursue organizational and operational reforms to reach this goal,” Said Gov. Baker. “Thanks to the hard work of the panel members, we have action items to improve service reliability, correct the failures that would bankrupt the MBTA if left unchecked and rescue the transportation system our economy relies upon.”

On February 20, Baker announced a team of national leaders in transportation, economic development and municipal planning charged with performing an in-depth diagnostic review of the MBTA’s core functions. The panel met 18 times over six weeks to review past studies with MBTA staff, Massachusetts Department of Transportation leadership, transit advocates and labor representatives in order to benchmark the MBTA against peer agencies and analyze performance through objective analysis. The panel synthesized recent MBTA studies, conducted a performance review, examined the MBTA’s core functions and compared results with other transit operations to assess the status of the system’s governance, finances and capital planning.

The panel’s key findings include an unsustainable operating budget; chronic capital underinvestment; bottleneck project delivery; ineffective workplace practices; shortsighted expansion program; organizational instability; lack of customer focus; flawed contracting process and lack of accountability.

After considering a range of scenarios, the panel recommends:

• Creating a Fiscal and Management Control Board to enforce new oversight and management support and increase accountability over a three to five year time frame. The goals will target governance, finance, agency structure and operations through recommended executive and legislative actions that embrace transparency and develop stability in order to earn public trust.
• New fiscal and management oversight. Replace the current MassDOT Board with a five-member Fiscal and Management Control Board, with three members appointed by the governor and one each nominated by the speaker of the house and the Senate president. The governor appoints a chief administrative officer to lead the T, who reports to the Control Board.
• Capture revenue opportunities: Significantly increase MBTA self-generated revenue from fares, advertising and real estate, as well as through grants and federal programs.
• Budget firewall: Build a firewall between the operating and capital budgets – construct one, five and 20 year plans for each.
• Capital planning: Create a dedicated state-funded capital program to modernize vehicles and infrastructure and pause construction spending for system expansion (except for federally funded projects) until such a plan is in place.
• Customer service: Create customer-oriented performance management and strengthen communications.
• Update system routes: Rationalize and reform system routes.

The full report is available at the governor’s website.

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