Governor Healey Releases Plan for Historic, $8 Billion Transportation Investment to Improve Roads, Bridges, Regional Transit and Immediately Stabilize MBTA Finances
Plan does not rely on any
new taxes; Governor will propose $300 million in Chapter 90 funding, a 50
percent increase for municipal roads, bridges and infrastructure
WORCESTER – Today, Governor Maura Healey announced a plan to make historic
investments in the state’s roads, bridges and regional transportation system
and immediately stabilize the finances of the MBTA, putting it on a path of
long-term stability. The investments – representing $8 billion over the next 10
years – would be done without raising taxes and represent the largest state
transportation investment in more than 20 years by maximizing Fair Share
revenue and other existing resources.
The plan will be filed as legislation in the coming weeks as
part of the Governor’s Fiscal Year 2026 (FY26) budget proposal and an
accompanying supplemental budget. It puts into action many of the
recommendations made by the Transportation Funding Task Force, which delivered
its final
report to
the Governor outlining multiple steps for stabilizing and enhancing
transportation while setting the stage for ongoing discussion about how best to
finance transformative investments in transportation into the future.
“This historic transportation proposal represents smart,
forward-thinking fiscal management, and it will have an impact on people in all
regions of our state,” said Governor
Healey. “We’re going to invest billions of dollars to
deliver better roads, less traffic, safer bridges and a transit system that
works in every region. We’ll close the MBTA’s budget gap, improving service and
upgrading stations, and we’ll move forward on regional projects like West-East
Rail. And we’ll do this all without raising taxes. I’m grateful for the
insights of the Transportation Funding Task Force, which shaped this proposal,
and for the strong leadership of Secretary Tibbits-Nutt and Gorzkowicz.”
“This plan will not only stabilize the finances of the MBTA but
also dedicate new and critical resources to our Regional Transit Authorities
and municipalities, accelerate our efforts to repair crumbling bridges, fix our
culverts and advance important projects throughout the state,” said Lieutenant Governor Kim Driscoll.
“Our administration knows the role a safe, reliable and efficient
transportation system plays in the future of Massachusetts and this plan
represents a gigantic step forward.”
The Healey-Driscoll Administration is maximizing existing Fair
Share Funds through an innovative funding mechanism and strong fiscal
management. The proposal would:
· Immediately direct $857
million in surplus Fair Share revenue from FY24 to public transportation.
· Dedicate $765 million in
Fair Share resources from FY26 to the Commonwealth Transportation Fund,
building on an innovative strategy developed by the Healey-Driscoll
administration to maximize Fair Share through borrowing to yield $5 billion
over the next 10 years for capital investment bonds in rail, roads, bridges,
Regional Transit Authorities and culverts.
· More than double support
for the MBTA’s operating budget to $687 million in FY26 and immediately address
the agency’s budget shortfall, putting the MBTA on a path of long-term
stability. This increase comes after the Governor’s doubled the operating
budget to $314 million in FY25.
As part of this capital expansion, Governor Healey intends to
file a multi-year Chapter 90 bill later this month that will grow the size of
the funding pool directed to cities and towns to $300 million per year for five
years, the highest amount in the history of funding for local roads and
sidewalks. This additional $100 million annual investment represents a 50
percent increase to support the repair of municipal roads, bridges and
infrastructure.
The combined impact of the Governor’s House 1 budget proposal
for FY26 and the supplemental budget to spend surplus Fair Share revenue from
FY24 will achieve a 50 percent-50 percent split between Fair Share resources
dedicated to transportation and education since enacted of the voter-approved
surtax. This was one of the key recommendations included in the Transportation
Funding Task Force report.
Among the improvements that this funding will allow
include:
· $1.4 billion in
investments at the MBTA for new commuter rail coaches, Red and Orange Line
cars, station accessibility and resilience, track improvements and power system
resiliency.
· $2.5 billion for road and
bridge repairs across the state through MassDOT, with money set aside for
culverts, small bridge repairs and safety and congestion hot spots.
· Close the funding gap for
the Allston I-90 Multimodal Project
· Allow for projects
advancing West-East Rail to continue to move forward, including capacity
improvements near Pittsfield, trackwork and accessibility improvements in
Springfield, and station planning in Palmer.
“Governor Healey and Lt. Governor Driscoll have stressed that
transportation systems must work if we want our communities to thrive, and the
announcements today further the state's vision to improve infrastructure by
recommending significant financing initiatives for the short and long-term,”
said Massachusetts
Transportation Secretary and CEO Monica Tibbits-Nutt. “With the
Governor's plan, we are taking very actionable steps to increase the use of
Fair Share revenue, offer municipalities more money through the Chapter 90
program, double support for the MBTA's operating budget, and expand
microtransit services.”
“This plan builds upon the success we have already achieved by
leveraging Fair Share dollars through the Commonwealth Transportation Fund to
invest in FY25 in critical infrastructure and puts the work of the
Transportation Funding Task Force into immediate action. By borrowing against
Fair Share revenue, we have devised an innovative strategy that will allow us
to not only continue to invest in key projects and infrastructure, but also
solve the MBTA’s funding crisis not just for this year but years into the
future,” said Secretary
of Administration and Finance Matthew J. Gorzkowicz. “I’m
grateful to Governor Healey, Lieutenant Governor Driscoll and members
of the task force for their support and guidance as we crafted this proposal
that will make historic investments in the foundation of our transportation
infrastructure.”
“On behalf of the MBTA, I thank the Healey-Driscoll
Administration for their visionary leadership and commitment to strengthening
public transportation across Boston and the entire Commonwealth,” said General Manager and CEO Phillip Eng.
“This solution-oriented approach is leading to a historic investment and will
provide critical support to the MBTA, including our operating capacity,
improving service, and ensuring a more sustainable, reliable transit system for
all riders. As we move forward, I am committed to ensuring that we remain
focused on the needs and expectations of the public we serve. We're going to
make the best use of the public's dollars by building a more efficient and
capable workforce, and delivering meaningful projects and services that improve
the transit experience for everyone.”
After covering $100 million in debt service on new borrowing,
the FY26 budget will propose to invest:
· $687 million to stabilize
MBTA operations, including $500 million from Fair Share to to fund programs
such as the MBTA Workforce Academy, low-income fares and water transportation
programs
· $110 million for Regional
Transit Authorities, including $66 million for formula-based transit
improvements, $30 million for Fare Free service and $10 million to facilitate
interconnectivity between RTAs
· $55 million for MassDOT
operations, including workforce investments and enhanced capital project
delivery
The surplus Fair Share supplemental budget to be filed by
Governor Healey will propose to invest $857 million of the $1.3 billion surplus
available for spending in transportation, including:
· $400 million to address
workforce and safety initiatives identified as necessary by the Federal Transit
Authority
· $300 million to replenish
MBTA reserves
· $25 million for a Winter
Resilience Assistance Program for municipalities
· $25 million for RTA
workforce recruitment and retention
· $10 million for
microtransit
The multi-pronged financing plan leans on Fair Share, which has
performed exceedingly well as a revenue source for Massachusetts. In FY24, the
state collected $2.46 billion from the surtax, nearly $1.5 billion above what
had been budgeted.
The financing plan also calls for using $170 million available
from the administration’s pool of federal matching funds to retire the MBTA’s
legacy debt ($89 million), freeing up operating capacity at the agency. These
matching funds will also continue to support the administration’s strategy of
aggressively pursuing federal funding, with matching dollars committed to the
Green Line Central Tunnel project as well as local technical assistance and
local project matches.
Lastly, the administration plans to use $1.2 billion in Grant
Anticipation Notes (GANs) to borrow against future federal highway grants to
finance priority Highway Division projects statewide.
The financing plan was heavily informed by the work of the
Transportation Funding Task Force, which was created by Governor Healey through
executive order last January. The Task Force spent the past year reviewing
current and projected revenue sources, comparing those sources to benchmarks
and trends in peer and neighboring states and exploring innovative financing
approaches and alternative pricing mechanisms.
The Task Force developed a framework focused first on
stabilizing the transportation system’s finances and addressing critical
infrastructure repair needs. Additional recommendations looked at how to
Enhance and Transform the system.
Some of the recommendations included:
· Allocating half of Fair
Share revenues to transportation over time
· Expanding capital capacity
for transportation by dedicating a significant portion of Fair Share revenue to
the CTF
· Using Fair Share to
stabilize public transportation agency operations
· Maintaining predictable
and stable funding for investments in Regional Transit Authorities and microtransit
providers
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