MBTA to Transfer $500MM From Operating to Capital Budget

MBTA said the one-time transfer of funds will allow it to “accelerate safety investments, advance importance workforce and retention opportunities, promote major bus initiatives, and more.”

The Massachusetts Bay Transportation Authority (MBTA) will reallocate up to $500 million in operating funds to support capital investments, following Board approval on Jan. 27.

MBTA said the one-time transfer of funds will allow it to “accelerate safety investments, advance importance workforce and retention opportunities, promote major bus initiatives, and more.” The funding is unrelated to the Bipartisan Infrastructure Law funds, the transit agency noted.

“Last fiscal year, we spent a record $1.9 billion in capital investments and addressed some of the state of good repair backlog,” MBTA General Manager Steve Poftak said. “But we still have important investments to make.”

MBTA plans to use the $500 million to invest in:

• Safety, $67 million: MBTA will provide $45 million to the Green Line Train Protection Project, which will install a train monitoring system to help operators “reduce the risk of train-to-train collisions by scanning the track for other vehicles, monitoring train speed and stopping the train if it’s approaching a signal or obstacle too quickly,” according to the transit agency. The project is slated to be accelerated by a year, with completion slated in 2023. MBTA will also provide additional funds to support increased inspections at MBTA stations and facilities, and to address “identified safety and non-code compliant concerns” at the Lynn Parking Garage.

• Workforce, $20 million: MBTA will advance such initiatives as pandemic pay for front-line employees; expanding the human resources staffing program; and establishing an employee recruitment and retention program with opportunities to extend hiring bonuses and referral bonuses for key positions at the agency. 

• “Shovel-Ready/Worthy” Projects, $70 million: MBTA will advance the Newton Commuter Rail Station project to 100% design; expand the Codman Yard Expansion and Improvements project to include building and power infrastructure improvements; program funds for “potential near-term real estate opportunities”; and advance infrastructure planning for the future electrification of the Commuter Rail network.

• Additional Federal Formula Funding Preparation, $145 million: The funding will “provide the 20% [local] match needed to program anticipated new Federal formula funds as identified in the Bipartisan Infrastructure Law,” MBTA said. “New funds, including matching funds, will be programmed through the FY23-27 Capital Investment Plan development process.”

• Preserving the Existing Capital Program, $89 million: MBTA will provide the additional funds needed to support the Franklin Double Track and Signal and ATC Implementation projects; replenish the surplus/contingency fund to support any future COVID-related (materials and labor) cost increases; and advance the full scope of the Tower 1 Interlocking Early Action project.

• Bus, $109 million: MBTA will provide funding for the Arborway Bus Facility design, the Blue Hill Avenue Transit Priority Corridor, and the North Cambridge Bus Facility. Funding will also support the Quincy Bus Maintenance Facility and the procurement of 60 New Flyer buses as part of the New Flyer Bus Overhaul Project.

MBTA said it received nearly $2 billion in one-time Federal relief funds during the pandemic, which allowed it to “maintain service levels and balance its operating budget despite significant reductions in fare revenues. Federal relief funds continue to be applied to eligible operating expenses, freeing up other revenues on a one-time basis.”