Income-based T fares eyed
Would increase ridership but would cost millions
An income-based MBTA fare option could attract thousands of new subway and bus riders and hundreds of thousands more trips on the RIDE paratransit service, according to an ongoing T study that pegged the cost at tens off millions of dollars depending on who qualifies.
The MBTA still does not have a clear timeline for when it might attempt to launch a pilot program offering half-price fares to lowincome riders — something the T’s board endorsed in December — but the costs and potential for increased demand became clearer Monday as officials work toward implementation.
Estimates vary based on where the income threshold would be set, as compared to the federal poverty level, which in 2020 is $26,200 annual household income for a family of four. Allowing those who earn less than twice that level to acquire income-based passes would draw in roughly 50,000 to 90,000 new commuters to the bus and subway every year, MBTA Deputy Director of Policy and Strategic Planning Lynsey Heffernan told the Fiscal and Management Control Board.
Those riders would cause the T to forgo between $23.3 million and $42.3 million in revenue each year, Heffernan said.
On the RIDE, a low-income option could increase demand 29% — about 363,000 more trips per year — bringing with it the need for almost 200 more vehicles in the first year of implementation. That alone could increase costs $20 million to $25 million for “medium participation” and $35 million to $40 million for “high participation,” the bulk of which comes from greater operating costs rather than foregone fare, Heffernan said.
Board members asked Heffernan to return at a future meeting date with more information on what other public transit agencies are doing with low-income fares and how the MBTA could find a partner organization, which could either help subsidize the costs or use its resources to determine which riders are eligible.
Transportation Secretary Stephanie Pollack warned that the operational costs are key to understand: if the T attracts tens of thousands of new passengers, it will likely need to increase its rail and bus output to maintain a sufficient level of service.
“No one wants a discounted fare so they can stand at the bus stop and watch a full bus go by and leave them behind,” Pollack said during the meeting. “If the point of this is to make transit more affordable so people use it more, that’s an important policy outcome, but then we can’t pretend we’re not going to have more people using it and not figure out the cost of running the additional buses or additional trains.”