COMMONWEALTH OF MASSACHUSETTS
STATE SENATOR
MICHAEL O. MOORE
SECOND WORCESTER DISTRICT
State House, Room 518, Boston, MA 02133 (617) 722-1485
June 18, 2009
Senator Michael O. Moore Announces Comprehensive Transportation Reform
Legislation dramatically restructures transportation system; eliminates Turnpike Authority; ensures toll equity; and puts MBTA employees
and retirees under GIC
BOSTON — Senator Michael O. Moore (D-Millbury) is pleased to announce that the Legislature continued its aggressive reform agenda today, by approving final legislation that completely overhauls the state’s transportation system. The consensus bill dissolves the Turnpike Authority and consolidates multiple agencies into a unified, independent agency, eliminating waste and producing billions of dollars in short- and long-term savings, transfers ownership of the Worcester Regional Airport, and requires forward funding for all Regional Transit Authorities. The new agency would begin operating November 1, 2009. The next step in the process is to send it to the Governor for his signature.
In a key development, the final bill requires all active and retired MBTA workers to join the state’s Group Insurance Commission (GIC) by January 1, 2010 – the earliest date the GIC could accommodate given the challenge of moving up to 10,000 employees and retirees. An earlier proposal for an actuarial study was dropped during conference negotiations due to new information from a Massachusetts Taxpayers Foundation report that verifies significant savings under GIC.
“As a new Senator, I am happy to be involved in the passage of this consensus bill which takes the necessary first steps to reforming a broken transportation system,” said Senator Moore. “In dissolving the Turnpike Authority, the Legislature has continued its promise of Reform before Revenue and has increased efficiency, transparency and accountability in managing transportation throughout the Commonwealth.”
The final bill eliminates the Turnpike Authority, streamlines communications, and creates a more efficient and cost-effective system under a unifying agency called the Massachusetts Department of Transportation (MassDOT), potentially saving the Commonwealth up to $6.5 billion during the next 20 years.
MassDOT sheds the many layers of bureaucracy in the current system by consolidating and sharing existing resources and services. It is overseen by a five-member board, appointed by the governor, and contains an office of planning and programming to coordinate financing and development of all surface transportation plans, including roads, bridges and transit.
Included in this transportation reform is a section which will authorize the City of Worcester to transfer the Worcester Regional Airport to the Massachusetts Port Authority within one year of the effective date of this bill. The Worcester Regional Airport has been under operation by the Massachusetts Port Authority while under ownership of the City of Worcester.
“The resolution of the Worcester Regional Airport situation is long overdue and I am happy to have assisted in finalizing the sale of the airport to Massachusetts Port Authority,” said Michael Moore.
In an additional effort to increase the efficiency of Regional Transit Authorities, this bill also requires that by July 1, 2011 that all RTA’s are required to adopt a forward funding budgeting system. The new budgeting system will provide the RTA’s with their fiscal year funding from the state in advance, instead of being retroactively reimbursed by the Commonwealth.
“The forward funding practice is a critical reform that is essential to maintaining RTA services throughout the Commonwealth,” said Michael Moore.
The legislation also reconstitutes the Highway Fund as the Commonwealth Transportation Fund, which is subject to annual appropriation by the Legislature and uses gas tax and registry fee revenue to pay debt service and contract assistance. Remaining revenues are transferred annually into the newly-established Transportation Trust Fund, which takes in all other transportation revenues, including Tobin Bridge and highway tolls, and pays for MassDOT operations.
Under the new agency, the current system is reduced to four divisions: 1. Registry of Motor Vehicles; 2. Highway (which consolidates MassHighway, Department of Conservation and Recreation bridges and selected roadways, the Tobin Bridge, the Metropolitan Highway System, and the Western Turnpike); 3. Mass Transit (which includes the MBTA and Regional Transportation Authorities, both of which remain independent with MassDOT oversight); 4. Aeronautics (which replaces the former Massachusetts Aeronautics Commission and retains control over all municipal airports).
The bill eliminates the Turnpike Authority, merging the Metropolitan Highway and Western Turnpike systems into MassDOT on January 1, 2010 with transfers of employees and assets required by that date.
One of the biggest pieces of the bill is the treatment of MBTA employees and retirees under GIC. Those currently paying 15 percent of their health benefits will be required to contribute the same as their state employee counterparts – 15 percent for those hired before June 30, 2003 and 20 percent for those hired after that date.
All pre-65 retired employees will pay 15 percent of their health insurance premium under the new legislation, and all retired MBTA employees over 65 will be responsible for their monthly Medicare Part B premium payment and up to 15 percent of any Medicare supplement plan.
Using estimates from the MassTaxpayers report on MBTA health benefits, savings from this proposal will be $35 million a year or approximately $700 million in 20 years.
Other measures in the legislation include the elimination of the MBTA’s “23 and out” for future employees effective July 1, 2009, requiring those employees to reach 25 years of service and 55 years of age to collect retirement benefits. The bill also establishes the Office of Performance Measurement to impose stringent accountability on the new agency.
Additionally, the legislation puts Troop E under full control of the State Police colonel and addresses toll equity by ensuring that toll revenues are spent on tolled roads.
Massport is left untouched under the bill and remains independent because of its unique responsibility for Logan Airport and the Port of Boston. No state money is used for Massport operations.
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