As it turns out, our transit authority isn’t the only one going down the tubes, and for many of the same reasons that the future of the MTA, and those who depend on it, is troubled. A local NYC weatherman, MIT executive and fellow transit fan sends word of the financial condition of the MBTA up in Boston, as described in this Boston Globe article. If Pataki, Bruno and Silver haven’t been in change of Massachusetts, apparently people very much like them have been. Because they’ve done all the same things, with the same results. Rich, undeserved, enhanced, pensions, generally handed out by Democrats, proposed to be offset by lower pay and benefits for future employees. Massive debts run up by Republicans who claimed to cut taxes but in reality merely deferred them. Pandering to riders with cheap fares — leading to massive increases later. And money drained off to the automobile, in this case for the massive over-runs on the Big Dig (not mentioned in the article linked above but very important).
According to the Boston Globe, the MBTA’s “total debt is $5.2 billion, or higher with interest included.” This for or a metro area half the size of the MTA service area in population. The MTA, as of June 2008, reported a debt of $29 billion, not including debts of the State of New York contracted to pay for it. The huge run up in debt in Massachusetts was turbo-charged in the administration of former Governor William Weld. Given his track record in Massachusetts, it is no surprise that he later sought to be Pataki’s successor in New York.
"The T grants full pensions to all retirees after 23 years of service, regardless of age." The MTA grants a full pension at age 55 after 25 years of work. In 2005, the MTA’s Transit Worker’s Union went on strike during the Christmas season demanding full retirement at age 50 after just 20 years of work. That provision has passed the New York State Legislature without a single “no” vote, but thus far has not been signed by the Governor.
It could happen any time, and be irrevocable. In fact, the legislature could vote tomorrow to allow every current state and local government worker, including themselves, to retire immediately at double their current salary. And the state would be constitutionally obligated to raise taxes as high as is necessary to pay for it, even if public services were completely eliminated. At some point they just might do it.
"A Senate bill under consideration would keep that benefit for current employees, but force new hires to wait until they are at least 55 to get a full pension, as do other state employees” in Massachusetts.
New York has also repeatedly cut the pay and benefits of younger generations of public employees, to help fund the riches handed over to those cashing in and moving out. Telling those older generations that they have taken too much and need to give something back is claimed to be legally impossible, but in reality is just politically difficult.
"MBTA fares have gone up four times since 1991." Four times in 18 years. I’ll be the wages of MBTA employees has gone up more than four times in 18 years. The agency’s stored value “Charlie Card” costs $1.70 per ride and provides free train and bus transfers. Commuter rail service is really cheap in metro Boston.
Meanwhile, in New York the introduction of free transfers and unlimited ride cards drastically cut the fare per ride on New York City Transit after 1995 — even more so after adjustment for inflation. It was apparently all paid for with borrowed money. Massive fare increases are under discussion here as well — and more are coming if certain macro-economic scenarios occur.
Now “the Massachusetts Bay Transportation Authority will have to increase public transit fares by as much as 25 percent.” Just like here. Of course those that benefited from the low fares and then moved away will be unaffected. In fact, there is a long history in New York of “save the fare” pandering by local pols who drive everywhere, followed by transit system deterioration and ultimately massive fare increases.
Looks like in Boston, it’s been an “everybody wins” scenario just like the one here. What appeared to be the unique values of those leading the state of New York may in fact be the values of their generation: generation greed. Or perhaps human nature about thoughtless people? Too bad they didn’t include the apparently required “and we’re not kidding” clause to all those constitutional provisions limiting debts. Too bad as well that when you sell out the common future, it eventually arrives. And thank goodness for the bicycle.