A proforma is an accurate statement of the finances of an organization. The proforma shown here details the sources of transportation funding available to and financial obligations of the Massachusetts Depart- ment of Transportation in FY2014-FY2023.
Revenues
The revenue section of the proforma includes all of the existing revenues available to fund transportation. Most of the fees and taxes paid to the Registry of Motor Vehicles (RMV) and all of the gas or motor vehicle fuels tax (currently 21 cents) is dedicated to transportation uses. In 2009, the Legislature pledged a por- tion of the state sales tax increase to support transportation, including to the MBTA and the Regional Tran- sit Authorities. Tolls charged for travel on the Massachusetts Turnpike (I-90), Tobin Bridge, and the Sumner and Ted Williams Tunnels are also represented as revenues for the transportation system. The annual $29 inspection fee for vehicles, labeled the MSVI, is also accounted for in this discussion.
Types of Revenues
State Motor Fuels Tax: The Commonwealth collects 21-cents per gallon tax on each gallon of gasoline and diesel fuel consumers purchase at the pump, estimated at $662 million in fiscal year 2013. Sales Tax: Five-thirteenths of one cent (0.385%) of the state sales on all purchases is dedicated to transportation, estimated to be $311.7 million in FY2013.
Registry of Motor Vehicle Fees: These are the fees charged by the Registry for vehicle titles, registra- tions and drivers license fees, estimated at $523.8 million in fiscal year 2013.
Motor Vehicle Safety Inspection Fee (MSVI): Each motor vehicle registered in the Commonwealth is required to have an annual safety and emissions inspection; the fee for which is $29. These inspection fees are expected to total $134 million in FY2013.
Metropolitan Highway System (MHS) Tolls: These funds are generated by motorists paying to use the Metropolitan Highway System from Route 128 to downtown Boston, the Tobin Bridge and the Sumner Tunnel and the Ted Williams Tunnel.
Western Turnpike (WT) Tolls: This is revenue generated by motorists paying a toll to use the western portion of the Massachusetts Turnpike from Route 128 to the New York border.
Metropolitan Highway System & Western Turnpike Non-Toll Revenue: MassDOT collects revenues from leases of service plazas, cell phone towers, and fiber optic conduits located along the I-90 corridor from Boston to New York.
Highway Revenue: This includes funds from the issuance of permits and fees for the use of the Com- monwealth’s highways by oversized vehicles and construction equipment, and from the sale and lease of MassDOT land.
Merit Rating Board (MRB) Assessments: MassDOT assesses fees to insurance companies for the costs of maintaining and updating individual driving records and of reporting this information to Massachu- setts auto insurers and other government agencies involved in transportation and public safety. Expenses
The operating expenses of MassDOT include:
Payroll and Benefits: Wages, health care costs, and insurance for the 4,000 employees of the Massa- chusetts Department of Transportation. The model also includes $75 million to manage the acceler- ated capital program over the course of the next decade. This number increases in the proforma in FY2014 to reflect our proposal to stop paying for our employees with borrowed funds and to properly pay for them with operating funds.
Materials, Supplies, Services, and Administrative Expenses: These categories include rents, goods, fuel, electricity and water and other services necessary to operate the state highway system, registry branches, aeronautics programs and general operations of the department. This category also in- cludes the funds paid to private service stations for providing annual vehicle inspections out of the $29 fee paid by motorists. Similar to payroll and benefits, the growth in FY2014 is due to the transfer of $48.3 million in rents, goods and other services that had been historically charged to the capital budget. Construction & Maintenance: These funds support the rehabilitation and modernization of the I-90 Turnpike from Lenox to downtown Boston, including the introduction of All- Electronic Tolling. This construction program is funded from tolls paid for the use of the road. Also included in this category is the additional funding ($50 million) necessary to meet the forecasted cost to remove snow based on the five year historical average.
Grants, Subsidies, and Contract Assistance: this category represents funding transferred from Mass- DOT to other agencies and programs:
2009 MBTA Contract Assistance: In 2009, the MBTA received a $160 million annual infusion from the state as part of a financing package that saw the Commonwealth’s sales-tax rate increase to 6.25 percent. That additional revenue, coupled with a bond refinancing, stabilized the MBTA budget for the next several years and helped to prevent fare increases and service cuts.
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Additional MBTA Contract Assistance: Amounts represented in this line item are the annual oper- ating deficits for the MBTA, $140 million in FY14 growing to $427 million in FY18. In addition, $25 million, indexed to inflation at 2.5%, is included for possible service enhancements to the system that could include late night service on weekends and nights.
RTA Contract Assistance: This is the annual state assistance for the 15 Regional Transit Authorities to allow for the introduction of forward funding and repayment of debt associated with this practice. In FY2015 the $100M, plus the base of $62 million, is available for expanded services. This level of funding will allow for additional customer and service improvements that may include night and weekend service, shorter waits and more routine, predictable service.
RTA State Contract Assistance Spending with Additional $100 Million Funding
$0 $10 $20 $30 $40 $50 $60 $70 $80 P V TA W R TA B AT M V R TA M A R T S R TA CCR TA G AT R A LR TA B R TA MWR TA VTA C AT A F R TA N R TA M illi o n s
Equity – MassDOT is proposing to increase the spending for RTA operations by $100 million going forward. This will help the RTAs provide needed service, including later bus runs in the evenings and on weekends.
RTA 2013Millions 2014 Millions Change Millions
PVTA $17.2 $49.9 +$32.2 WRTA $9.2 $20.3 +$11.1 BAT $5.2 $15.0 +$9.8 MVRTA $5.5 $12.7 +$7.2 MART $4.4 $10.2 +$5.8 SRTA $4.6 $10.0 +$5.4 CCRTA $3.4 $9.3 +$5.9 GATRA $2.8 $9.1 +$6.3 LRTA $2.7 $7.4 +$4.7 BRTA $1.9 $5.1 +$3.2 MWRTA $2.1 $4.7 +$2.6 VTA $1.2 $3.2 +$2.0 CATA $1.1 $2.5 +$1.4 FRTA $0.7 $1.7 +$1.0 NRTA $0.4 $0.8 +$0.4
Other Grants and Subsidies: These amounts are for services provided to MassDOT by other agen- cies and programs. The Department of Environmental Management receives an annual allocation of funding for the administration of clean air programs designed to reduce or mitigate the negative air quality impacts from motor vehicles.
Debt Service: Principal and interest for borrowings for capital projects, both in the past and the future. This is oftentimes referred to as the ‘cost of capital’ – the amount owed on an annual basis for borrowed funds. With the assistance of the Executive Office of Administration & Finance and other Common- wealth financial offices, MassDOT has included the assumed schedules for the cost of transportation- related debt over the next 25 years, for borrowings in the past, the base capital program for the next ten years, and the 21st-Century Transportation Plan.
Commonwealth Past Borrowings: These values represent the remaining amounts owed for projects that have already been constructed. Over the past twenty to forty years, the Commonwealth is- sued bonds for the construction of roads, bridges, airports, train stations, and other transportation facilities.
MHS Principal & Interest: This represents the remaining amounts owed for the construction of the Metropolitan Highway System, the I-90 Turnpike from I-95 to downtown Boston, and the Central Artery project.
Western Turnpike Principal & Interest: This represents the remaining funds owed for bonds issued to construct and rehabilitate the Western Turnpike from I-95 to the New York border. This debt is scheduled to be fully repaid in FY2017.
Commonwealth Planned Borrowings: If we made no changes in how MassDOT is currently funded, this is the amount that the Commonwealth is anticipated to borrow for transportation infrastructure projects over the next decade. These amounts represent the projected principal and interest pay- ments owed, over the next decade, for these borrowings.
21st-Century Transportation Plan Principal and Interest: This is our plan for increased capital invest-