MBTA Fare and Service Changes

March 28, 2012

March 28, 2012

| Leading the Nation in Transportation Excellence | www.mass.gov/massdot

Summary
Operating Deficit
MBTA reduced from $185,000,000 to $159,000,000 Provisionally-identified multiple MassDOT and MBTA resources to reduce final deficit to $84,000,000

Recommendation
23% overall fare increase Service
Limited bus, rail and ferry reductions Creation of Watch List for low-performing routes

RIDE
No reduction in RIDE service $5 premium territory fare

March 28, 2012

| Leading the Nation in Transportation Excellence | www.mass.gov/massdot

Public Process
25 meetings and 6 hearings
Over 5,800 attendees Over 1,800 speakers

5,800 emails to fareproposal@mbta.com Letters

169 from individuals 70 from organizations 57 from elected officials

Which customers reached out to us?

51% are bus system users 15% are seniors 12% are students

Responses
80% oppose service reductions 24% oppose fare increases 11%support some fare increase

March 28, 2012

| Leading the Nation in Transportation Excellence | www.mass.gov/massdot

Operating Deficit: Proposed Solves

Beginning Deficit 12-2-11 Full GIC Enrollment: 1/1/13 Power Contract Savings Reduction in Debt Service Additional Projected Fare Revenue Based on Recent Ridership Commuter Rail Service (Extra Work and CSX) RIDE Optirun/Schedule Efficiency Headcount Reduction (51 Positions) GIC Medicare Part B: 1/1/13 Projected Savings in Contract with MBCR Miscellaneous Utilities Savings (Gas, Electricity, and Jet Fuel) Single Person Train Operations on Red Line (SPTO): Annual $1.3m Pension Savings from Headcount Reduction and Police Rate Reduction RIDE Taxi Voucher Pilot Program GIC Life Insurance: 1/1/13 FICA Savings from Headcount Reduction Total Reductions to Deficit Addition to Deficit March 1, 2012 Certification of MBTA Base Sales Tax Revenue for FY 2013 (0.998% growth) -$7,806,703 ($185,167,262) $9,041,166 $6,499,223 $5,000,000 $1,806,703 $2,407,451 $1,800,000 $1,774,013 $1,578,348 $1,000,000 $745,095 $665,313 $528,625 $500,000 $218,109 $135,712 $33,699,758

MassDOT / MBTA Contributions, Further Efficiencies & One Time Revenues MassDOT Snow and Ice Removal Surplus Transfer North Station Garage Lease Payment 10 Park Plaza Rent, MBTA/MassDOT inter-agency efficiencies Total Reductions to Deficit $5,000,000 $5,000,000 $5,000,000 $15,000,000

MassDOT / MBTA Contributions Requiring Legislative Action MassDOT Motor Vehicle Inspection Trust Fund Transfer Tort Reform RIDE Federal Reimburstments Total Reductions to Deficit Service Reductions 23% Fare Increase $51,000,000 $4,000,000 $5,000,000 $60,000,000 $15,400,000 $72,900,000

March 28, 2012

| Leading the Nation in Transportation Excellence | www.mass.gov/massdot

Recommendation
23% overall fare increase Bus
Eliminate 4 weekday routes Revise 14 routes

RIDE
No reduction in RIDE service $5 premium territory fare

Ferry
35% fare increase Eliminate Quincy weekend service

Green Line
Eliminate E Branch weekend service between Brigham Circle and Heath Street.

Commuter Rail
Eliminate weekend service on Needham, Kingston / Plymouth and Greenbush lines

March 28, 2012

| Leading the Nation in Transportation Excellence | www.mass.gov/massdot

Changes Asked for by the Public

The MBTA successfully reduced the original projected deficit -- without impacting the customer -- through both internal actions and working collaboratively with MassDOT. Off peak discount fares for seniors are coming. Within the next 16 to 18 months as the technology is available, off peak fares for seniors will be introduced, reducing the cost to ride the T during less busy hours when compared against a new peak fare price. Numerous individuals and groups commented to the MBTA that a fare increase similar to past increases of 25% would be preferable to the proposals. We are at a 23% increase. The recommended service reductions impact as few as 1/8th of the customers (1.2 million annual trips vs. 9.1 million) who would have been impacted under the original scenarios. MassDOT, MBTA and MassPORT are finalizing plans for MassPORT to provide financial support for transit services benefiting the airport, including options to provide free fares on certain segments of the Silver Line. MBTA is opening a dialogue with universities and colleges to implement a U-pass program for students and faculty. MassDOT, MBTA and EHS have developed an option to allow federal reimbursements for eligible medical trips provided by the RIDE. This along with the premium service fare structure, in person assessments and other reforms will allow the T to provide service for the next year without major service reductions. Enhanced patrols and programs to curtail fare evasion.

March 28, 2012

| Leading the Nation in Transportation Excellence | www.mass.gov/massdot

Impact
MBTA Fare and Service Change: Proposal vs. Recommendation

0.3%

Total Annual MBTA Trips Protected Passenger Trips Lost Final Recommendation

99.7%

March 28, 2012

| Leading the Nation in Transportation Excellence | www.mass.gov/massdot

Impact: Annual Trips

MBTA Fare and Service Change: Proposals vs. Recommendation
40,000,000

37,900,618

35,000,000

30,000,000

25,000,000

20,000,000

15,000,000

10,000,000

9,182,790

5,000,000

1,212,242
0

Trips Lost Proposal 1

Trips Lost Proposal 2

Trips Lost Recommendation

March 28, 2012

| Leading the Nation in Transportation Excellence | www.mass.gov/massdot

Impact: Comparison of Major Fare Types

Single Ride Fares Local bus CharlieCard Rapid Transit CharlieCard Bus + Rapid Transit Senior single ride Bus Rapid transit Bus + rapid transit RIDE ADA Territory Premium fare Student single ride Bus Rapid transit Bus + rapid transit Existing $1.25 $1.70 $1.70 Planned $1.50 $2.00 $2.00 Change $0.25 $0.30 $0.30

$0.40 $0.60 $0.60

$0.75 $1.00 $1.00

$0.35 $0.40 $0.40

$2.00 n/a

$4.00 $5.00

$2.00 New / $3.00

$0.60 $0.85 $0.85

$0.75 $1.00 $1.00

$0.15 $0.15 $0.15

March 28, 2012

| Leading the Nation in Transportation Excellence | www.mbta.com

Impact: Comparison of Major Fare Types

Monthly Passes Local bus LinkPass (bus and subway) Senior / TAP Student 5-day Student 7-day Commuter Rail Zone 1 Zone 9 Existing $40 $59 $20 $20 n/a Planned $48 $70 $28 $25 $28 Change $8 $11 $8 $5 New

$135 $265

$173 $329

$38 $64

10

March 28, 2012

| Leading the Nation in Transportation Excellence | www.mbta.com

MBTA Transit Peer Cities Price Comparison

Boston Planned Single-Ride Local Bus $1.50 - $2.00 Philadelphia $1.55 - $2.00 New York $2.33 - 2.50 Chicago $2.00 Atlanta $2.13 $2.50 Los San Angeles Francisco Washington $1.50 $2.00 $1.50 - $1.70

Single-Ride Subway

$2.00 - $2.50

$1.55 - $2.00

$2.33 - $2.50

$2.25

$2.13 $2.50

$1.50

$1.64 $10.55

$1.60 - $5.20

Single-Ride Bus & Subway $2.00 - $4.50

$2.55 - $3.00

$2.33 - $2.50

$2.25 $2.50

$2.13 $2.50

$1.50

$3.64 $12.55

$2.60 - $6.20

Monthly Bus & Subway

$70.00

$83.00

$104.00

$86.00

$95.00

$75.00

none

none

11

March 28, 2012

| Leading the Nation in Transportation Excellence | www.mbta.com

MBTA - RIDE Paratransit Service - Peer Cites Price Comparison

Paratransit Fare for ADA-mandated service*
$4.00

City Philadelphia

"Premium" Paratransit Fare (non-ADA)

$4.00

ADA Paratransit Door-to-Door? Curb-to-Curb

Paratransit Notes

Premium service - state dedicates lottery funds to subsidize fares; available to age 65+ even if not ADA-eligible; door-to-door service; serves outside of 3/4 mile limit
No service outside 3/4 mile No service outside 3/4 mile No service outside 3/4 mile No service outside 3/4 mile Premium service is a taxi debit card program, offers same-day service, possibly covers small areas outside 3/4 mile No service outside 3/4 mile

New York Chicago Atlanta Los Angeles San Francisco Washington

$2.50 $3.00 $3.80 $2.25 $2.00 - $6.75 $3.00 - $7.00

N/A N/A N/A N/A varies N/A

Door-to-Door Door-to-Door Curb-to-Curb Curb-to-Curb Door-to-Door Door-to-Door

Boston (current)

$2.00

$2.00

Door-to-Door

Premium fare currently means that non-ADA trips are allowed (at regular fare) - outside 3/4 mile limit and/or same-day and/or outside service hours

Boston (planned)

$4.00

$5.00

Door-to-Door

Non-ADA trips would become Premium Fare

*Ranges reflect differences based on time (peak vs. off-peak), distance traveled, and/or prepaid purchase

12

March 28, 2012

| Leading the Nation in Transportation Excellence | www.mbta.com

MBTA - Commuter Rail and Peer Cities Maximum Fare Zone Price Comparison City Philadelphia Single-Ride $8.75 On-Board Surcharge $1.25 Monthly Pass $191.00

New York - Metro North

New York - LIRR NJ Transit

$22.00
$25.00 $16.50

$6.00
$6.00 $5.00

$455.00
$429.00 $458.00

Chicago
Los Angeles San Francisco

$9.25
$14.50 $12.75

$3.00
NA NA

$263.50
$ 426.75 $338.00

Washington DC - VRE
Washington DC - MARC Boston (current) Boston Planned

$10.30
$11.00 $8.25 $10.50

NA
$3.00 $2.00 $3.00

$285.50
$275.00 $265.00 $329.00

Note: Weekday peak hour fares shown

13

March 28, 2012

| Leading the Nation in Transportation Excellence | www.mbta.com