July 21, 2009 : MBTA Fare Hikes

>> Emily: TONIGHT ON "GREATER

BOSTON," THE CHARGES ARE DROPPED

BUT THE ARREST OF HENRY LOUIS

GATES RAISES QUESTIONS OF RACIAL

PROFILING.

AND, GET READY TO PAY MORE.

GENERAL MANAGER DAN GRABAUSKAS

ON THE PROPOSED MBTA FARE

INCREASE.

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>> Emily: MBTA BUSES, SUBWAYS

AND TRAINS HANDLE MORE THAN 385

MILLION TRIPS LAST YEAR, MORE

THAN ANY YEAR IN THE AGENCY'S

HISTORY BUT THE T'S CRUSHING

DEBT HAS PUT THE AGENCY IN A

DEEP BUDGET HOLE.

TO FILL IT THE MBTA BOARD OF

DIRECTORS IS CONTEMPLATING A

NEARLY 20% ACROSS-THE-BOARD FARE

HIKE THAT'S GOT RIDERS

CONCERNED.

MANY PUBLIC TRANSIT RIDERS SAY

THEY HAVE A LOVE-HATE

RELATIONSHIP WITH THE MBTA.

THEY LOVE HOW EASY IT IS TO USE.

>> I LIKE THE T A LOT.

I FIND IT CONVENIENT.

I FIND IT COMFORTABLE.

IT'S QUICK FOR ME.

>> Emily: BUT THEY HATE THE

BREAKDOWNS, SERVICE DELAYS AND

OCCASIONAL RUDE EMPLOYEES.

>> THERE ARE A FEW THAT NEED

CHARM SCHOOL.

>> Emily: SO IT'S NOT SURPRISING

THAT T RIDERS ARE HAVING MIXED

REACTIONS TO THE PROPOSED 20%

FARE HIKE WHICH COULD HELP CLOSE

A $180 MILLION GAP IN THE

AGENCY'S BUDGET.

>> I FEEL LIKE IT'S NOT PAIR.

THEY CAN KEEP SERVICES THE WAY

IT IS.

>> Emily: SUBWAY FARES WOULD

JUMP FROM $2 TO $.50 A RIDE, THE

MONTHLY PASS WOULD GO UP $10 AND

COMMUTER RAIL PASSES WOULD GO UP

BY $30 A MONTH.

DAILY RIDERS LIKE ARLENE OF

BRAINTREE FIND THAT HARD TO

SWALLOW.

>> I PRETTY MUCH DO EVERYTHING

I'M SUPPOSED TO TO SAVE MONEY.

I BROWN-BAG IT FOR LUNCH.

I WALK TO THE TRAIN STATION

INSTEAD OF DRIVING AND PARKING.

I'M SQUEEZING EVERY DROP I CAN.

>> Emily: EVEN RIDERS WHO CAN

AFFORD THE HIKE SAY THEY WORRY

WITH ABOUT THOSE WHO CAN'T.

>> THEY'LL FEEL IT THE MOST.

I WORK WITH PEOPLE TRYING TO GET

JOBS WHO ARE TRYING TO -- WHO

JUST TO GET ONE PLACE TO ANOTHER

CAN FIND IT DIFFICULT.

>> Emily: WITHOUT THE FARE HIKE,

T OFFICIALS SAY THEY WOULD HAVE

TO DRASTICALLY CUT SERVICE.

>> IT'S GOING TO BE WORSE THAN

IT IS NOW AND I REALLY FEEL LIKE

I'M LIVING THE HARD LIFE NOW.

>> Emily: HARD LIFE AND SOME

HARD CHOICES FOR THE T.

WITH ME NOW IS MBTA GENERAL

MANAGER DAN GRABAUSKAS.

WELCOME, DAN.

>> GLAD TO BE HERE.

>> Emily: WE HAVE TALKED ABOUT

THIS BEFORE AND I'M EXPRESSED

THE SAME INCREDULITY AT THE

BILLIONS OF DOLLARS IN DEBT AND

THE BIG DIG AND IT'S A

STAGGERING SUM, BUT THESE T

RIDERS WE'RE TALKING TO SAY "SO

WHAT?

IT'S NOT MY PROBLEM THAT THE

TRANSPORTATION SYSTEM, THE T IN

PARTICULAR IS IN THAT KIND OF

DEBT" AND WHAT THEY PAY ALREADY

IS SUBSTANTIAL.

HOW DO YOU RECONCILE THAT?

HOW DO YOU SAY "WE'RE NOT GOING

TO BE ABLE TO GIVE YOU THE

SERVICES UNLESS WE GET OUT OF

THIS HOLE"?

>> FIRST, I VALIDATE THEIR

REACTION.

NONE OF US WHO WORK AT THE MBTA

ARE INTERESTED OR HAPPY IN

RAISING FARES FOR THE SAKE OF

DOING IT.

IT'S REALLY A LAST RESORT.

WE DON'T RAISE FARES EVERY YEAR

AS A KNEEJERK REACTION OR COST

OF LIVING, WE DO IT ONLY WHEN WE

NEED TO.

THE PROBLEM IS GO BACK TO THE

DEBT.

30 CENTS OUT OF EVERY DOLLAR I

HAVE TO SPEND GOES TO DEBT

SERVICE, NOT TO IMPROVE OR

MAINTAIN SERVICE AND THAT KEEPS

SNOWBALLING BECAUSE I HAVE TO

KEEP SPENDING IN ORDER TO

MAINTAIN AMERICA'S OLDEST SUBWAY

SYSTEM, SO WHEN YOU PUT THOSE

THINGS IN COMBINATION, WE NEED

TO RAISE FARES SOMEWHAT TO KEEP

UP WITH THE PACE OF INFLATION

BUT WE'RE HIT EXTRA HARD IN

BOSTON BECAUSE WE'RE THE HIGHEST

PERCENTAGE OF DEBT OF ANY

TRANSIT AGENCY IN THE COUNTRY.

>> Emily: PEOPLE SAY THE SAME

THING, THAT BASIC SERVICES ARE

GOING UP, THE COST OF LIVING IS

GOING UP, EVERY FEE IS GOING UP.

WHILE AT THE SAME TIME THEIR

SALARIES ARE GOING DOWN AND

COMPANIES ALL OVER THIS STATE

AND PROBABLY ALL OVER THE

COUNTRY ARE FORCING EMPLOYEES TO

TAKE UNPAID FURLOUGHS SO THEIR

YEARLY INCOME IS DECREASING AT

THE SAME TIME ALL OF THESE

THINGS -- AND WHY CAN'T WE GET

ON THE SAME BOARD WITH THIS?

>> PART OF OUR PROBLEM IS NOT

ONLY THE DEBT SIDE BUT ALSO THE

INCOME SIDE.

WE GET MORE THAN HALF OF OUR

BUDGET FROM A PENNY OF THE SALES

TAX.

WHEN THE ECONOMY TANKS, SO DOES

THE INCOME TO THE SALES TAX AND

SO DOES OUR TAKE COMING FROM THE

SALES TAX SO OUR INCOME TO THE

MBTA WHICH HELPS SUBSIDIZE 50%

OF THE COSTS IS ALSO DECLINING

SO MY SOURCE OF THE REVENUE IS

CYCLICAL.

YOU MAKE THE POINT AND SO DO MY

CUSTOMERS, AT THE TIME WHEN WE

CAN LEAST AFFORD TO PAY MORE,

WE, THE MBTA TAKE IN THE LEAST

AMOUNT SO WE'RE FORCED TO ASK

THE HOBSON'S CHOICE, IF WE RAISE

FARES AND KEEP IT AS MODERATE AS

POSSIBLE AT LEAST TRAINS WILL

STAY.

>> Emily: DO YOU HAVE TO CUT

SERVICES?

>> WE'RE A SERVICE BUSINESS.

ONLY WAY TO SAVE MONEY IS CUT

PEOPLE.

THAT WOULD BE BUS OPERATORS AND

TRAIN OPERATORS AND THAT MEANS

FEWER BUS TRIPS, FEWER TRAIN

TRIPS AND IT'S REALLY AS SIMPLE

AS THAT.

>> Emily: WHEN THE NEW SALES

TAX, I SHOULD SAY THE 6.25, 25%

INCREASE IN THE SALES TAX GOES

INTO EFFECT AUGUST 1ST YOU WILL

GET MORE.

YOU WILL GET SOME PROJECTIONS

ARE OF UP TO $160 MILLION A

YEAR.

IS THAT RIGHT?

>> THAT IS CORRECT.

>> Emily: THAT'S PRETTY GOOD

MONEY.

>> IT'S A SALVATION FOR US AND

FOR THE RIDERS BECAUSE WE HAD

ABOUT $180 DEFICIT PROJECTED FOR

THIS COMING YEAR, ANOTHER $70

MILLION ON TOP OF THAT, IF WE

DIDN'T DO THIS I WOULD BE

LOOKING AT BOTH DRASTIC FARE

INCREASE, MUCH MORE, MAYBE TWICE

AS BIG AS WE'RE TALKING ABOUT

AND SERVICE CUTS TO TRY TO

BALANCE THAT.

NEW YORK JUST FACED THE SAME,

EXACT PREDICAMENT AND ALBANY

BAILED THEM OUT, BUT NOT

COMPLETELY AND THEY HAVE HAD TO

RAISE FARES.

>> Ed: ARE THERE FARES

COMPARABLE?

>> HIGHER THAN OURS.

A TRIP ON THE MBTA, ON THE

SUBWAY IS $1.70 WITH THE CHARLIE

CARD, IT'S GOING TO $2 AND IT'S

ALREADY $2 IN NEW YORK PROPOSED

TO GO TO 2.25.

>> Emily: WHAT IS THE PURPOSE OF

THESE TOWN MEETINGS OR HEARINGS

OR WHATEVER YOU'RE GOING TO CALL

THEM?

YOU'RE GOING TO PUSH THIS

THROUGH.

>> SOME COMBINATION OF EITHER

FARES GOING UP, SERVICES BEING

CUT OR THE COMBINATION OF BOTH

OF THOSE IS WHAT WE HAVE TO PUT

FORWARD.

WE'RE RECOMMENDING THAT WE NOT

DO SERVICE CUTS BUT IN FACT

RAISE FARES APPROXIMATELY 19.5%

INSTEAD BUT UNDER STATUTE WE'RE

REQUIRED TO ASK THE OPINION OF

THE PUBLIC.

>> Emily: "SURE.

LET'S RAISE PRICES."

>> IT ISN'T THAT THEY HAVE A

CHOICE TO DO NOTHING.

I WENT THROUGH THIS IN THE LAST

FARE INCREASE.

I WOULD OPEN UP MEETINGS SAYING

I DON'T HAVE THE LUXURY TO SAY

TO YOU YOU CAN VOTE NO FARE

INCREASE OR SERVICE CUT, I HAVE

TO DO SOMETHING BECAUSE I AM

REQUIRED TO BALANCE THE BUDGET

BUT IS IT SOMETHING YOU WANT US

TO DO MORE OF OR LESS OF?

MY RECOMMENDATION IS THAT IT'S

BETTER TO RAISE FARES AND PUT

OURSELVES ON A GOOD FOOTING

RATHER THAN SAYING THAT THAT BUS

ROUTE YOU RELY ON TO GET TO WORK

HAS TO BE ELIMINATED.

IT'S NOT A GOOD CHOICE TO SAY I

MAY HAVE TO CHARGE YOU 25 CENTS

MORE PER TRIP BUT THAT IS THE

TRADEOFF.

>> Emily: WHEN IS THIS GOING TO

GO INTO EFFECT, MOST LIKELY?

>> PROBABLY JANUARY 1ST WOULD BE

THREE YEARS SINCE THE LAST

INCREASE, AND THAT'S PROBABLY

THE TIME LINE THAT WE PROBABLY

HAVE TO LOOK AT.

I REPEAT, WE DON'T GAIN ANYTHING

INDIVIDUALLY AS MEMBERS OF THE

STAFF BY RAISING FARES BUT WE

HAVE TO HAVE THE MONEY TO PAY

THE BUS OPERATORS TO PAY FOR THE

FUEL ON THE BUSES AND IF WE

DON'T DO IT WE HAVE TO LOOK AT

SERVICE CUTS.

THE SALVATION IS THE LEGISLATURE

MADE THIS, WHILE A DIFFICULT

CHOICE NOT A DRAMATICALLY AWFUL

CHOICE.

>> Emily: ON A POLITICAL

QUESTION, LAST WEEK

TRANSPORTATION SECRETARY JAMES

ALOISI WAS CRITICAL OF YOU

BECAUSE HE SAYS HE COULDN'T GET

IN TOUCH WITH YOU WHEN THE NTSB

REPORT WAS BEING RELEASED

REGARDING THE NEWTON TRAIN

ACCIDENT THAT KILLED A YOUNG

WOMAN A YEAR AGO.

YOU SAID YOU WERE ON FURLOUGH --

I ASSUME THAT WAS A FORCED

FURLOUGH, MAYBE IT WAS OPTIONAL,

I DON'T KNOW.

>> NOT OPTIONAL.

FIVE DAYS WITHOUT PAY.

>> Emily: WHAT WAS YOUR RESPONSE

TO THAT?

>> IF THE SECRETARY HAD TRIED TO

GET IN TOUCH WITH ME, HE COULD

HAVE REACHED ME.

WHAT HE SAID WAS NOT TRUE.

>> Emily: WHY DID YOU HAVE TO BE

IN TOUCH WITH HIM?

>> IF HE HAD WANTED ME TO, I WAS

AVAILABLE, I'M IN TOUCH WITH MY

OFFICE AS I AM EVERY DAY.

>> Emily: YOU'RE SAYING IT'S NOT

TRUE.

IF HE HAD TRIED TO GET IN TOUCH

WITH YOU HE COULD COULD HAVE?

>> HE DIDN'T TRY TO GET IN TOUCH

WITH ME.

IT'S A LIE.

>> Jim: THAT'S DRAMATIC.

THE HANDWRITING ON THE WALL IS

YOU WERE PUT INTO THIS JOB UNDER

A DIFFERENT ADMINISTRATION AS

CLASSIC AT THE TIME TO TURN

THINGS OVER?

>> IF IT'S POLITICS, THAT'S

UNFORTUNATE BECAUSE WE HAVE

THESE GREAT CHALLENGES, THE

MBTA, WE HAVE A LOT OF GOOD WORK

WE'RE TRYING TO KEEP ON THE

RAILS, AS IT WERE AND I THINK

THE ONLY WAY WE'RE GOING TO

SUCCEED IS IF ALL OF US WORK

TOGETHER TO MAKE IT HAPPEN.

>> Emily: IT'S A JOB YOU WANT TO

KEEP?

>> Reporter: I'M DOING THE BEST

JOB I AND --

>> I'M DOING THE BEST I CAN.

IT'S A CHALLENGING JOB, PUBLIC

TRANSPORTATION IS A LIFELINE FOR

1.2 MILLION PEOPLE A DAY.

A GREAT CHALLENGE AND A GREAT

SERVICE.

>> Emily: HOW DOES THIS WORK?

WHO DO YOU REPORT TO ULTIMATELY?

WHO DO YOU CHANNEL YOUR BUSINESS

THROUGH?

>> ON A DAY TO DAY BASIS, THE

SECRETARY OF TRANSPORTATION ALSO

SERVES AS CHAIRMAN OF THE BOARD

OF DIRECTORS OF THE MBTA AND I

DIRECTLY WORK FOR THE BOARD.

>> Emily: YOU DEAL WITH THEM NOT

NECESSARILY WITH JAMES ALOISI?

>> BOTH BECAUSE HE'S BOARD

MEMBER AS CHAIR.

>> Emily: HAVE YOU TALKED TO HIM

SINCE THIS INCIDENT HAPPENED?

>> I TALKED TO HIM THE DAY HE

SAID I HADN'T TALKED TO HIM.

>> Emily: AND HE SAID?

>> IT WILL BE BETWEEN US.

I THINK THAT'S -- -- BETWEEN

BOSS AND EMPLOYEE.

>> Ed: WE WILL KNOW ABOUT THE

FARE INCREASES SHORTLY --

>> Emily: WE'LL KNOW ABOUT THE

FARE INCREASES SHORTLY AND WILL

GO INTO EFFECT AFTER THE

BEGINNING OF THE YEAR.

>> I TELL FOLKS IF YOU COME TO

THE WORK SHOPS YOU CAN VOTE TO

HAVE NOTHING HAPPENED.

>> Emily: FIND THEM ON?

>> GO TO MBTA.COM AND FIND THEM

THERE.

>> Emily: DAN GRABAUSK AUS.

THAT IS IT FOR "GREATER -- DAN

GRABAUSKUS.

THAT IS IT FOR "GREATER BOSTON."

THAT PLUS A DANGEROUS

INFESTATION OF MUSSELS IN SOME

WESTERN MASSACHUSETTS LAKES.

I'M EMILY ROONEY.

GOODNIGHT.

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