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This study illustrates why issuing pension obligation bonds (POBs) to refinance $360 million of the MBTA Retirement Fund’s (MBTARF’s) $1.3 billion unfunded pension liability would only compound the T’s already serious financial risks.

According to the Federal Transit Administration (FTA), the MBTA’s $935.4 million fare collection system (AFC 2.0) that is scheduled to be implemented in 2023 will reduce fare evasion by $35 million over a decade. But the T announced in 2021 that evasion could actually increase by up to $30 million under AFC 2.0, and now a Pioneer Institute study warns that insufficient fare enforcement could drive that figure even higher under the new system.

This report warns that the MBTA will likely face a fare evasion crisis when it transitions to all-door boarding on buses, the Green Line, and the Mattapan trolley in 2023. General Manager Steve Poftak and MBTA staff have signaled the potential for a $25–30 million spike in fare evasion costs when the new AFC 2.0 system is implemented unless the MBTA institutes meaningful, enforceable penalties for fare evaders. In this report, Pioneer Institute makes recommendations for managing the AFC 2.0 contract and related fare evasion procedures going forward.

Even as MBTA ridership and revenue have been gutted by the COVID-19 pandemic, the system remains a lifeline for so many residents in the Greater Boston area, especially those working in essential services like health care or in industries most impacted by the pandemic such as the restaurant sector.  Facing a crisis of this magnitude, T leadership must first do its all to rethink how it delivers services before reflexively making cuts.

Better hiring practices and internal organization, external resources needed to deliver on expanded capital budget BOSTON – Going from much larger capital budgets to delivering the actual projects needed to repair and modernize the MBTA will require a “Marshall Plan” that includes...

Reforms needed if T is to achieve increased capital spending targets to modernize the system and boost ridership Media Inquiries: Contact Micaela Dawson, Communications Director,  mdawson@pioneerinstitute.org BOSTON – The Massachusetts Legislature must free the MBTA from overly restrictive procurement methods and the...

While Pioneer Institute opposed the 2016 MBTA fare increases, the Institute believes that the T has earned an increase in fares of 6.3 percent, provided it is committed to introduce differential pricing, address chronic fare non-collection, fix the T’s faltering pension system,...

Monday’s meeting of the MBTA Fiscal and Management Control Board brought bad news on two fronts:  T ridership is down and pension costs are up.  Neither is a new problem, but both will require bold action to fix. Specifically, ridership was down...

Read press coverage of this report in the Boston Herald: Study suggests MBTA float ferry service expansion and Editorial: “Ferrying off to work“; The Boston Globe: “Look to the harbor to ease Boston’s transportation woes,” “Steady stream of studies fuel transportation debates,” and here; The Boston Business...