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Reform Before Revenue:
Senate Passes Bill To Dramatically Restructure And Simplify State
Transportation System
I
am pleased to announce that the Senate stood by its pledge of “Reform
before Revenue” and in a 39 to 1 vote passed comprehensive reform
legislation that consolidates multiple agencies into an independent
authority and eliminates the MBTA’s “23 and out” retirement policy.
The
Senate bill eliminates the Turnpike Authority, streamlines communications,
and creates a more efficient and cost-effective system under a unifying
agency called the Massachusetts Surface Transportation Authority (MSTA),
potentially saving the Commonwealth up to $6.5 billion over 20 years.
The
MSTA sheds the many layers of bureaucracy in the current system by
consolidating and sharing existing resources and services. In the first two
years of the Senate reform plan, the new system will see a surplus of $71.7
million in year one and $25.5 million in year two, based on reforms alone
with no additional revenues attached.
Under
the new Authority, the current system is reduced to two divisions: Roads
and Bridges; and Public Transit.
The
Roads and Bridges Division assumes the duties of MassHighway, the Turnpike
Authority, the Tobin
Bridge, and
Department of Conservation and Recreation (DCR) parkways and bridges; while
the Public Transit Division assumes the duties of the MBTA and provides the
Regional Transit Authorities (RTAs) with central oversight and funding
through the new Authority.
Transition
to the MSTA will phase in over a three-year period, consolidating the
Western Turnpike, MassHighway and DCR parkways and bridges by July 1, 2009;
the Metropolitan Highway System, the Tobin Bridge
and the RTAs by July 1, 2010; and the MBTA by July 1, 2011.
The
Senate bill aligns the new Authority’s retirement policy with the state
retirement system, eliminating the MBTA’s “23 and out” and implementing “55
and 25”. It also requires that the cost of MBTA health care benefits
will be no greater than those provided under the GIC. Employees will be
required to participate in the GIC only if an actuarial study shows it to
be more cost effective.
The legislation also includes significant transparency and accountability
measures, including:
·
A special audit unit within MSTA to root
out fraud, waste and abuse in Authority spending. The unit is authorized to
refer matters to the state inspector general for further investigations;
·
Improved fiscal scrutiny for major capital
expansion projects (those with projected construction costs greater than
$25 million) by requiring a written finding that sufficient revenues will
exist to operate the project;
·
Use of the state fiscal year and the
state’s accounting system;
·
A ban on former employees from lobbying
the Authority for one year;
·
Restrictions on the use of outside
consultants;
·
Mandatory reporting requirements to the Legislature;
and
·
A requirement that employee salaries are
counted as operating expenses, thereby ending the Commonwealth’s practice
of paying employee salaries from bond proceeds.
Massport
is left untouched under the Senate restructuring bill and remains independent
of the MSTA because it is not a surface transportation agency and is
responsible for, and specializes in, aviation and the Port of Boston.
Additionally, it does not use state money for its operations.
The
bill now goes to the House for further action.
For a summary of the legislation, please visit www.ThereseMurray.com.
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