Transit System Would Dip Into Reserves

3/7/08 - The board overseeing the MBTA has approved a budget that does not include a fare increase for next year.

The spending plan for the fiscal year beginning July 1 instead would have the transit system dip into its reserves and refinance current debt to bridge an estimated $75 million shortfall.

MBTA General Manager Daniel Grabauskas told the Boston Globe he can't rule out a fare hike in 2010.

The board voted Thursday to transfer $20 million from the rainy day fund, leading only $35 million left in reserve.

Grabauskas said the T cannot continue to use reserves to plug the deficit. He's been lobbying state and federal officials to put more money into the transit system.

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