The Boston Globe is reporting that despite the fare hike that took effect in January, the MBTA will need to tap into it’s emergency funds in order to balance the budget for the next fiscal year, the third year in a row it has done so.
Further complicating matters, the MBTA needs to negotiate new contracts with its unions, something that hasn’t even been taken into account yet.
On the positive side, operating revenue has increased to $35 million thanks to the January fare hike.
The MBTA’s debt service is expected to balloon to $436 million for fiscal year 2009.
Several years ago, the MBTA was switched to a funding formula that provides it with a portion of the state sales tax, but tax revenue declined, which caused the MBTA to lose substantial funding.