A burst of new hiring and worse-than-projected ridership deepened the MBTA's financial woes and officials project the agency will need to navigate a sizable budget gap in the upcoming cycle.
MBTA higher-ups rolled out new financial estimates Friday that widened the gap between revenues and projected spending, which could set the scene for renewed transportation finance debate on Beacon Hill as Gov. Maura Healey prepares to propose more funding for the T.
Depending on factors such as ridership, T finance officials expect an operating budget gap between $567 million and $652 million in fiscal year 2025, which starts July 1. The chasm could grow to between $799 million and $902 million by fiscal 2029, they said.
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The agency could plug part of the hole with a final $303 million tranche of savings bulked up by pandemic-era federal aid, but even if expenses fall in the T's favor, the forecast still anticipates a $182 million shortfall in the upcoming fiscal year.
"Difficult decisions must be made," MBTA Chief Financial Officer Mary Ann O'Hara told the board's audit and finance subcommittee.
The figures do not take into account potential new funding that Healey will pursue. Healey said Wednesday she wants to double state support for MBTA operations, and T officials said they are waiting for clarity on what that will entail before updating their projections.
Officials on Friday outlined plans to push for a new low-income fare program, but did not signal any interest in raising fares more broadly to help cover any shortfalls.
