MBTA rolls in budget plan with eye on $160m bailout

The MBTA board is expected to consider a budget today with a gaping hole - putting off tough decisions about significant fare hikes and service cuts while they await the Legislature's verdict on a bailout.

Daniel A. Grabauskas, general manager of the Massachusetts Bay Transportation Authority, said the budget will include an "other revenues" line entry for $160 million, the size of the agency's budget deficit. Grabauskas hopes to fill that hole in the coming months with help from the legislature, but without that assistance Grabauskas and the MBTA board will have to go back into the budget and reduce service and hike fares to make up the difference.

The T's board is legally required to pass the first version of its annual budget by March 15, for the spending year that begins July 1. Grabauskas's unusual move buys time for the agency and avoids putting additional pressure on legislators, but it could still could mean tough luck for riders by midyear.

Grabauskas and James A. Aloisi Jr., the transportation secretary, who leads the MBTA board, have both said the T would need to raise fares by 25 percent and reduce off-peak and weekend schedules substantially without a state bailout.

MBTA managers are working on a contingency plan that would spell out the service cuts and exact fare increases that would take effect soon after July 1 if help does not come, Grabauskas said.

Governor Deval Patrick is proposing a gas tax increase of 19 cents, part of which would be used to plug the T's deficit.

The money would also be used to roll back a recently approved toll hike on the Massachusetts Turnpike and to shore up other road, bridge, and rail projects around the state.

But the Legislature has reacted coolly to Patrick's plan so far.

Grabauskas may face trouble with the MBTA's advisory board, which represents city and town governments and has the legal authority to review the budget and make sure it's balanced.

"We're going to scrutinize whatever it is they do," said Paul Regan, the advisory board's executive director.

Eric Bourassa, an advocate with the Massachusetts Public Interest Research Group, said the T should begin the public process of planning the fare hike now.

"Let's get the debate going and make sure that included in the debate is the consequences for the MBTA," he said.