Massachusetts Senate Leaders Propose Merging Transportation Agencies

Massachusetts Senate leaders yesterday released their proposal to reform the state's transportation system with the goal of bringing efficiency and cost-savings to roadways, bridges, and mass transit operations.

Senate President Therese Murray and Senate Transportation chairman Steven Baddour announced a plan to combine the Massachusetts Turnpike Authority, the Massachusetts Bay Transportation Authority, and the Massachusetts Highway Department into one government agency called Massachusetts Surface Transportation, or MassTrans.

Over the past two months, the two lawmakers' message has been "reform before revenue" in response to proposed toll increases, on which MassPike's board is set to vote Jan. 22, and a proposal from House Speaker Salvatore DiMasi to increase the state's 23.5-cent gas tax as an alternative to toll hikes.

Having one government entity that oversees the commonwealth's surface and rail transportation needs would consolidate departments and services while also pooling the different revenue streams that the current authorities generate, proponents said.

"The idea is to streamline, eliminate redundancies between agencies, and make sense of the current system," Murray said in a press release. "We think this plan does that."

MassTrans would have authority to issue new bonds and refinance previous debt, according to the Senate proposal. The new agency would have an 11-member board chaired by the state transportation secretary and the organization would have two major divisions, one for road and bridges and another for public transit. The lawmakers plan to file their proposal next month.

In response to the MassTrans proposal, Transportation Secretary Jim Aloisi said the ideas add to current discussions over how to reform the state's transportation system. Gov. Deval Patrick will file a long-awaited plan to restructure MassPike "very soon," according to Aloisi spokesman Klark Jessen.

"We appreciate what has become a statewide focus on transportation reform among members of the legislature, stakeholders, and citizens concerned about the state of our transportation system," Aloisi said in a prepared statement. "The legislative proposals of the past 24 hours will add to the broad discussions now ongoing. We will bring forward a comprehensive package that represents historic change and long-term financial stability for the system."

In November, Patrick said his proposal would involve dismantling the turnpike, with the western portion of the system folding into the Highway Department and the portion that runs through the greater Boston area merging with the Massachusetts Port Authority. He did not include reforms to the MBTA in those plans.

Both MassPike and the MBTA are operating with structural deficits and MassPike needs additional revenue to boost its debt service coverage levels.

Also late yesterday, UBS Securities LLC withdrew its notification of an insurer downgrade event on five floating-to-fixed rate swaptions with MassPike, said UBS spokesman Doug Morris. A termination event could cost the authority nearly $400 million.

"As I previously stated, I firmly believe this was premature on UBS'part and am pleased that they have agreed retract the notice," said Alan LeBovidge, MassPike's executive director.

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