Last night a $38.1 billion state budget (H. 3650) was released from conference committee. NAIOP applauds the conference committee members (House Ways and Means Chairman Brian Dempsey, Senate Ways and Means Chairwoman Karen Spilka, Sens. Sal DiDomenico and Vinny deMacedo and Reps. Stephen Kulik and Todd Smola), Senate President Stan Rosenberg, and Speaker of the House Robert DeLeo for their leadership in passing a bill that includes important reforms for the MBTA.

One of the most important aspects of the bill (and something NAIOP has championed) is the creation of a MBTA Fiscal and Management Control Board chaired by the Secretary of MassDOT. The budget states that the Fiscal and Management Control Board shall “initiate and assure the implementation of appropriate measures to secure the fiscal, operational and managerial stability of the authority and shall continue in existence until June 30, 2018.” A two year extension beyond 2018 could be granted if needed. The Board shall formulate and recommend a plan to the secretary of transportation to stabilize and strengthen the finances, management, operations and asset condition of the authority. The Fiscal and Management Control Board will also develop performance metrics and measure items included in the plan. NAIOP believes the creation of the Control Board will provide greater accountability and transparency for the T’s governance and management practices and is critical to ensure a safe, reliable, fiscally stable, modern transit system for Massachusetts.

The budget also suspends the Pacheco Law for three years. The Pacheco Law requires a vetting process before privatization of services at the MBTA and, according to a report released today by the Pioneer Institute, it has cost the MBTA at least $450 million since 1997. NAIOP strongly supports this important reform.

The House and Senate are expected to approve the budget today and then it goes to Governor Baker for his review. He then has 10 days to review it review it before signing it and announcing amendments and vetoes.

NAIOP will continue to actively advocate for transportation reforms that support roads, bridges, public transit – and economic growth.