Amid rising costs, MBTA considers cuts

Plummeting revenues and mounting costs in the state's public transportation system are likely to lead to cuts in the MBTA's operating budget and may result in the curtailing of some services, Michael H. Mulhern, the MBTA's general manager, said yesterday.

"We have some very difficult financial decisions to make in the coming months, which will require us to make some adjustments," Mulhern said in a phone interview after addressing the Massachusetts Bay Transportation Authority board of directors' monthly meeting. "We need to tighten our belts."

Mulhern has not decided where cuts will be made, but he said the authority has surpassed its fuel budget and is coping with climbing healthcare costs. Diesel fuel for MBTA buses has run $11 million over its $15 million budget for fiscal 2005, and health care costs are now $5 million over budget, he said.

"At least in the short run, raising fares and parking fees is off the table," Mulhern said. "The board has asked me not to make any fare hikes until new fare equipment is deployed in about 18 months. We need to fix the problem in the operating budget."

The goal, he said, would be to "create efficiencies" and "streamline services on the edge of our mission."

The authority also intends to more aggressively negotiate with its unions and plans to press them to help with the rising costs of health care, a request that has been rejected in the past, he said.

In 2003, the authority boosted fares, 25 cents on the subway, 15 cents for buses, 50 cents for parking at train stations, and $1 at commuter-rail stations. In 2000, officials increased bus and subway fares by 15 cents.

"The sooner we act, the less painful some of the decisions will be," he said.