Legislature agrees on bill that would dismantle Turnpike Authority

The transportation compromise does not, however, include any new revenue for the state's ailing transportation agencies or immediately negate the need for increases in tolls on the Turnpike or fares on the Massachusetts Bay Transportation Authority. Whether it will be necessary to raise tolls or fares, and by how much, will be dictated in large part by the state budget.

Another unanswered question is whether this legislation, which is expected to pass overwhelmingly, will be signed by Governor Deval Patrick, who has been critical of the Legislature's previous attempts to overhaul the transportation system.

In a key indicator, Patrick tonight declined to endorse the legislation -- or even comment on the proposal himself. That stood in stark contrast to pension reform legislation approved last week, which he heartily endorsed as he stood with legislative leaders.

"We appreciate the movement on this critical piece of the Governor's reform agenda," Patrick administration spokesman Kyle Sullivan said in a statement. "We look forward to analyzing it to determine whether it meets the long-term needs and interests of the Commonwealth. We will have no further comment until we have fully reviewed the conference report."

Patrick had proposed a 19-cent-a-gallon increase in the state's gasoline to help the agencies, while the House and Senate have earmarked a portion of a sales tax hike to use for transportation needs.

Patrick has vowed to veto the Legislature's proposed sales tax increase, from 5 percent to 6.25 percent, unless lawmakers first approve reforms that he finds acceptable. In addition to pension and transportation proposals, lawmakers are trying to hammer out a final deal on ethics reform. That could come as early as Thursday, and House Speaker Robert A. DeLeo said today he hoped to send ethics legislation -- as well as the state budget -- to the governor's desk by Friday.

Restructuring the state’s byzantine transportation system has been a priority on Beacon Hill for years, but took on added importance last year as the agencies that run roads, rail, and bridges teetered on the edge of insolvency under the weight of Big Dig debt.

The decay on state roads and transit routes, meanwhile, continued apace amid predictions that they would become exponentially more expensive to fix in coming decades.

The overhaul ironed out tonight will not do away with toll roads or the turnpike authority’s $2 billion debt. But the authority will no longer exist in its current form as of Jan. 1 if the bill becomes law. All the state roads and bridges -- now overseen by a variety of agencies and authority -- would be overseen by one mega-authority, as would, to some extent, the MBTA.

By centralizing the state’s transportation system, lawmakers are hoping to be able to make more coherent policy decisions about when to raise tolls and transit fares and how to invest in train cars and bridge repairs. Under the current system, toll roads are run by two different agencies and state bridges are maintained by at least four, with oversight shared between the governor and a collection of appointed boards.

House and Senate leaders were not available for an interview after the bill filing tonight.

“This is a landmark occasion for the Commonwealth,” said Senate President Therese Murray in a prepared statement. The state, she said “has never seen such a dramatic restructuring of its transportation system.”

DeLeo added that the bill “eliminates the antiquated and inefficient transportation structure in Massachusetts.”

Lawmakers claim they are eliminating enough duplication and worker benefits in their plan to save up to $6.5 billion over the next two decades. But some observers, including Widmer, have warned that some savings may be overstated, given the costs of merging the agencies and the lack of specific job cuts outlined in the plans.

The biggest potential savings, trimming healthcare costs for MBTA workers, was among the most contentious issues. The MBTA’s largest union was so concerned about the loss of benefits it hired former Senate President Robert Traviglini to lobby on its behalf.

But in the end, transit workers and retirees will begin paying more for their healthcare costs, through a phased-in approach that begins Jan. 1, if the bill becomes law.

Future T workers would also lose the famous “23 and out” provision that allows workers to retire with a substantial pension after 23 years of service, sometimes in their early 40s, meaning some retirees could collect pensions as retirees longer than they collected regular salaries as employees. The new rules require workers to put in 25 years and reach age 55 before pensions kick in.

The new transportation system – simply titled “The Massachusetts Department of Transportation” -- would be governed by a single five-member authority, appointed by the governor. The authority will set policy for the secretary of transportation, who will serve as its chief executive officer but be appointed directly by the governor.

The board would control four divisions: the Registry of Motor Vehicles; the highway department, which would include the Tobin Bridge, the turnpike, the Big Dig and other state highways and parkways; Mass Transit, which would include the MBTA and regional transit authorities; and Aeronautics, which would control municipal airports.

The Massachusetts Port Authority would remain completely independent and would not lose control of Logan International Airport or the seaport. It would lose authority over the Tobin Bridge, a tolled span that one of the state's few transportation assets that turns a profit.

The MBTA, though under the new master board, would retain some independence, including its own general manager, budget and borrowing authority. But the bill eliminates the T’s separate governing board, which is now responsible for setting fares and approving contracts.