Budget Amendment ID: FY2023-S4-886-R1

Redraft TRP 886

Fiscal Year 2023 Regional Transit Authority Funding Distribution

Ms. Chandler, Ms. Comerford, Mr. Velis, Ms. Moran, Ms. DiZoglio, Messrs. Moore, Kennedy, Eldridge, Lesser and Fattman, Ms. Chang-Diaz, Messrs. Brady and Cronin, Ms. Gobi, Ms. Rausch, Mr. Hinds, Ms. Lovely and Messrs. Timilty and Pacheco moved that the proposed new text be amended in section 2, in item 1595-6370, by striking out the words “innovative low-income fare reduction” and inserting in place thereof the following:- “means-tested, discounted or fare-free”; and

by striking out section 57 and inserting in place thereof the following section:-

“SECTION 57. (a) Notwithstanding any special or general law to the contrary, for fiscal year 2023, of the $96,500,000 transferred in item 1595-6370 of section 2E, $94,00,000 shall be considered operating assistance and distributed to regional transit authorities based on fiscal year 2022 distributions, in accordance with the fiscal year 2022/23 bilateral memorandum of understanding between each regional transit authority and the Massachusetts Department of Transportation.  Each regional transit authority shall receive operating assistance from said item 1595-6370 of said section 2E of not less than the amount received in fiscal year 2022. Notwithstanding the foregoing, $3,500,000 of such operating assistance shall be distributed to each regional transit authority using a formula based on total transit ridership, the population of its member communities and service coverage area; provided, however, that such formula shall be unanimously agreed to by all regional transit authorities and approved by the department. The operating assistance amount shall be provided to advance the goals and targets of workforce development and service.

(b) Of the amount to be transferred under item 1595-6370 of section 2E, $2,500,000 shall be distributed as grants to regional transit authorities to design and implement means-tested, discounted or fare-free pilot programs that provide discounted or no-fee transit fares to qualifying riders on all modes of transportation operated by each authority. The Massachusetts Department of Transportation shall distribute all grants not later than September 1, 2022.

(c) In developing a means-tested, discounted or fare-free program, each regional transit authority shall engage in a fare review process as determined by federal regulation, providing opportunities for public input from geographically diverse areas within the authority’s service areas. The review process shall include, but not be limited to, an examination of: (i) the number of riders expected to benefit from the program; (ii) the average expected reduction of each fare, by mode of transportation; (iii) the overall impact on revenue to the system; (iv) partnership models for determining, and methods of verifying, eligibility requirements; (v) any estimated costs associated with the administration and marketing of the program; and (vi) whether a fare-free option would be less expensive to implement than a means-tested fare program.

During the operation, not less than quarterly and upon completion of a means-tested, discounted or fare-free pilot program, the regional transit authority council, in coordination with the secretary of health and human services, shall conduct an evaluation of the program. The evaluation shall include, but not be limited to, an examination of: (i) the number of riders who participated in the pilot program and the estimated benefits from a permanent program; (ii) the number of rides by participants of the program by mode of transportation, including geographic information on the origination and destination of trips; (iii) the overall impact on revenue to the system; (iv) partnership models for determining, and methods of verifying, eligibility requirements; and (v) any estimated costs associated with the administration and marketing of the program. The regional transit authority council shall make publicly available and file the quarterly evaluations and, not later than July 1, 2023, a comprehensive final report on the program shall be filed with the clerks of the senate and house of representatives, the senate and house committees on ways and means and the joint committee on transportation.”.