An InconvenienT Truth
Imagine if the subway fare was $5.
It's a simplistic analysis, but looking at the MBTA's P&L statement, fares would need to be 2.95 times their current level in order to cover all expenses. The claim that it's all going to debt service is a red herring--over two-thirds of those are operating expenses--so even if we exclude the $230m in interest payments for 2008, we would still need to more than double fares just to keep the lights on.
Of course it is more complicated than that. But the easiest thing is to get lost in the complexities. Looking at this simple number tells us that even with the fare doubling over just the past seven years or so, we're still not even close to covering actual costs. In fact, it's merely kept pace with the increase in expenses over the same time period.
Imagine if the subway fare was $5.
It's a simplistic analysis, but looking at the MBTA's P&L statement, fares would need to be 2.95 times their current level in order to cover all expenses. The claim that it's all going to debt service is a red herring--over two-thirds of those are operating expenses--so even if we exclude the $230m in interest payments for 2008, we would still need to more than double fares just to keep the lights on.
Of course it is more complicated than that. But the easiest thing is to get lost in the complexities. Looking at this simple number tells us that even with the fare doubling over just the past seven years or so, we're still not even close to covering actual costs. In fact, it's merely kept pace with the increase in expenses over the same time period.
posted by The Snob at
5:36 PM
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