The Massachusetts Bay Transportation Authority faces a $165 million deficit for fiscal 2010, which begins July 1, as debt service costs for the transit agency will increase by $77 million to $445 million.

Principal and interest payments tend to make up approximately 30% of the MBTA's operating budget as it has $5.2 billion of outstanding debt. However, next year, while debt service costs increase by $77 million, the authority will receive the same level of financial support from the state as in fiscal 2009 - $767 million of sales tax and general fund revenues, according to chief financial officer Jonathan Davis.

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