Budget Amendment ID: FY2016-S3-199-R2

2nd Redraft TRP 199

Fiscal Management Control Board
Messrs. Tarr, McGee, Hedlund, Ross, Humason and deMacedo moved that the bill be amended
by inserting after section 80 the following 10 sections:SECTION 80A. (a) There shall be within the Massachusetts Department of Transportation and
reporting to the secretary of transportation, a Massachusetts Bay Transportation Authority Fiscal
and Management Control Board, or FMCB.
(b) The FMCB shall consist of 5 members to be appointed by the governor; 3 of whom shall be
members of the Massachusetts Department of Transportation board of directors, 1 of whom shall
be the secretary of transportation or a designee, 1 of whom shall have experience in
transportation finance and 1 of whom shall have experience in mass transit operation. Each
member shall serve for the entire time that the FMCB is in existence, unless removed with or
without cause by the governor. Any vacancy in the FMCB shall be filled in the same manner as
the original appointment of the member being replaced. The secretary of transportation may fix
annual time and expense reimbursements of no more than $6,000 to be paid to members of the
FMCB from department of transportation funds. Directors on the FMCB may receive the time
and expense reimbursements in addition to any payments provided to directors under subsection
(b) of section 2 of chapter 6C of the General Laws; provided, however that said secretary shall
not receive any such reimbursement. The FMCB shall meet as regularly as necessary to ensure
the stability of authority operations and finances but not less frequently than 3 times each month.
(c) Notwithstanding section 3 and 7 of chapter 161A of the General Laws or any other general or
special law to the contrary, the FMCB shall be afforded all powers, responsibilities, and
obligations relative to the Massachusetts Bay Transportation Authority that are vested in the
Massachusetts Department of Transportation board, except as otherwise provided in this act, and
those powers, responsibilities, and obligations set forth in this act.
(d) Meetings of the FMCB shall be subject to sections 18 to 25, inclusive, of chapter 30A of the
General Laws. Records pertaining to the FMCB shall be subject to section 10 of chapter 66 of
the General Laws.
(e) The FMCB shall select a member to serve as chair.
(f) The FMCB may employ, retain, and supervise such managerial, professional, and clerical
staff as may be necessary to carry out its responsibilities. The FMCB shall have the authority to
set the compensation, terms, and conditions of employment of its own staff. Staff hired under
this subsection shall be employees of the Massachusetts Department of Transportation, except
such employees as the FMCB formally designates as independent contractors; provided,
however, that said independent contractors shall be treated as executives under section 26 of
chapter 161A of the General Laws.
(g) The FMCB shall initiate and assure the implementation of appropriate measures to secure
fiscal, operational and management stability of the Massachusetts Bay Transportation Authority
and shall continue in existence until June 30, 2018, and thereafter for such period annually as the
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members may determine, and the secretary of transportation may agree, is in the best interest of
the Massachusetts Bay Transportation Authority and necessary to achieve operational stability
and the performance metrics established by the FMCB for the authority; provided, however, that
the FMCB shall not continue beyond June 30, 2020.
(h) Following the dissolution of the FMCB, the board of directors of the Massachusetts
Department of Transportation shall resume governance of the Massachusetts Bay Transportation
Authority.
SECTION 80B. (a) The FMCB established in section 80A may delegate any powers,
responsibilities, and obligations specifically afforded to it to the general manager of the
Massachusetts Bay Transportation Agency, unless otherwise provided in this act.
(b) The general manager shall serve at the pleasure of the secretary and report to the FMCB;
provided, however that the general manager and the FMCB may agree upon an employment
contract that provides otherwise.
(c) The general manager shall, at least monthly, provide the FMCB with information on the
status of the revenues and expenses for the operating budget and on the status of revenues,
contracting, procurement and authorized and actual spending for the capital program. The
general manager shall, at least quarterly, provide the FMCB with data on progress toward
achieving key performance management targets. The reports shall further be submitted to board
of directors of the Massachusetts Department of Transportation, the secretary of administration
and finance, the clerks of the house and senate, the house and senate committee on ways and
means, and the joint committee on transportation.
SECTION 80C. (a) The FMCB established in section 80A shall formulate and recommend a
plan to the board of directors of the Massachusetts Department of Transportation to stabilize and
strengthen the finances, management, operations and asset condition of the Massachusetts Bay
Transportation Authority. The FMCB shall develop performance metrics and measure items
included in the plan. The plan shall:
(i) provide a safe, reliable, and sustainable transit system consistent with the state transportation
plan under section 11 of chapter 6C of the General Laws;
(ii) establish fiscal stability, including short- and long-term planning to ensure that the authoritys
budgets are aligned with its operational and capital needs;
(iii) reorient the agency to focus on providing better service to its current riders and on attracting
future riders;
(iv) facilitate sound management and a safe and effective workplace consistent with section 7 of
chapter 6C of the General Laws;
(v) develop a financially responsible, long-range approach to preserving and modernizing the
authoritys assets and meeting future needs for regional transit facilities and services consistent
with the program for mass transportation required by paragraph (g) of section 5 of chapter 161A
of the General Laws.
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(vi) utilize the powers afforded to the authority under chapter 161A of the General Laws, any
special laws, and the provisions of this act.

SECTION 80D. In addition to those powers referenced in subsection (c) of section 80A of this
act, the FMCB shall have the authority to::
(i) establish separate operating and capital budgets each with clearly designated revenue sources
and uses and establish policies and procedures to ensure no funds are commingled between
operating and capital budgets;
(ii) establish 1-year and 5-year operating budgets, beginning in fiscal year 2017, which are
balanced primarily through a combination of internal cost controls and increased own-source
revenues consistent with paragraph (q) of section 5 of chapter 161A of the General Laws and
which facilitate the transfer of all authority employees from the capital budget to the operating
budget; provided further that said 1-year and 5-year budgets shall be consistent with section 20
of chapter 161A of the General Laws;
(iii) establish 5-year and 20-year capital plans that include a phased program for the complete
restoration of the physical assets of the authority including its vehicle fleet, a plan to address
failings within the existing capital program and funding recommendations to meet the regions
transit needs;
(iv) establish a rigorous performance management system and performance metrics and targets
that address, among other things, maximizing of own-source revenues, increasing ridership,
reducing absenteeism, addressing vacancies and attrition, improving employee morale, achieving
procurement and contracting improvements and improving customer focus and orientation;
(v) review any contract for the provision of services entered into by the Massachusetts Bay
Transportation Authority, including contracts entered into before the establishment of the FMCB,
and including but not limited to commuter rail and paratransit services, and amend those
contracts, as necessary, in accordance with their terms;
(vi) establish, increase, or decrease any fare, fee, rate, or charge, for any service, license, or
activity within the scope of the authority consistent with subsection (d) of section 61 of chapter
46 of the Acts of 2013; provided, however, that the FMCB may present to the board of directors
of the Massachusetts Department of Transportation a plan consistent with (r) of section 5 of
chapter 161A, with any legislative changes necessary to implement said plan, that provides for
changes in fare structure or increases in fares predictably and gradually in excess of the limits
imposed by said subsection (d) of said section 61 of said chapter 46.
SECTION 80E. Notwithstanding any general or special law, the FMCB established in section
80A,shall have the authority to: (i) reorganize or consolidate departments, divisions or entities of
the authority, except the Metropolitan Boston Transit Parking Corporation, in whole or in part;
(ii) establish any new departments, divisions, or entities as it deems necessary; (ii) transfer the
duties, powers, functions, and appropriations of 1 department, division, or entity, except the
duties, powers, functions, and appropriations of the Metropolitan Boston Transit Parking
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Corporation, to another. Any reorganization or consolidation that affects the Department of

Transportation other than the Massachusetts Bay Transportation Authority shall not be effective
unless approved by the board of directors of the Massachusetts Department of Transportation.
SECTION 80F. Based on a recommendation of the FMCB established in section 80A, the board
of directors of the Massachusetts Department of Transportation may amend any borrowing
authorization or finance or refinance any debt of the Massachusetts Bay Transportation Authority
in accordance with law; provided, however, that the board of directors shall not delegate this
authority.
SECTION 80G. Not less than monthly, the FMCB established in section 80A shall appear and
report to the board of directors of the Massachusetts Department of Transportation.
SECTION 80H. (a) Within 60 days after all of the members of the FMCB established in section
80A have been appointed, the FMCB shall submit a preliminary report to the secretary of
administration and finance, the senate and house chairs of the joint committee on transportation
and the chairs of the house and senate committees on ways and means. The report shall include a
preliminary analysis of, and management plans to address, the Massachusetts Bay Transportation
Authoritys structural operating deficit and its capital and maintenance needs over the 5 years
following the effective date of this act.
(b) Annually, not later than December 15, the FMCB shall report on the Massachusetts Bay
Transportation Authoritys own source revenue, operating budget, capital plan and progress
toward meeting performance metrics and targets to the secretary of transportation, the secretary
of administration and finance, the senate and house chairs of the joint committee on
transportation and the chairs of the house and senate committees on ways and means. The report
shall include an update on the authoritys progress in: (i) maintaining a priority list of immediate
capital needs for the next 5 years and procurement and implementation plans; (ii) imposing a
barrier between the commingling of operating and capital budgets; (iii) increasing own-source
revenue as required by section 61 of chapter 46 of the acts of 2013; (iv) conducting thorough
reviews and analyses of all proposals for system expansion, taking into account operating and
capital costs, benefits to current and new riders and economic development impacts; (v)
centralizing agency procurement and contracting; (vi) planning and preparedness processes and
adopting an incident command system; (vii) reorganizing internal structure along model business
lines; (viii) maintaining 1-year and 5-year operating plans and budgets; (ix) maintaining a 20year capital plan for the restoration of physical assets; (x) improving customer relations and
instituting a customer-oriented performance management program; (xi) identifying and
implementing best practices supporting workforce productivity and engagement; (xii) reducing
employee absenteeism; (xiii) reducing barriers to public-private partnerships; and (xiv) utilizing
the lease and sale of real estate assets to support the long-term health of the system and
implementing value capture strategies.
(c) On or before January 1, 2018, the FMCB shall report to the secretary of transportation, the
chairs of the house and senate committees on ways and means and the senate and house chairs of
the joint committee on transportation as to whether the powers of the FMCB have been sufficient
to restore fiscal and operational stability and the reliable performance of the authority. If the
FMCB concludes that fiscal and operational stability and reliable performance has been

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achieved, the report shall include recommendations regarding the FMCBs view on the
governance structure that should be established to govern the Massachusetts Bay Transportation
Authority following the dissolution of FMCB. If the FMCB concludes the powers of the FMCB
are not sufficient to provide fiscal and operational stability and reliable performance, the report
shall include a statement of reasons why it has been unable to restore fiscal and operational
stability and reliable performance and a recommendation as to what measures the FMCB deems
necessary, including but not limited to the continued existence of the FMCB; provided, however,
that the FMCB shall be permanently and finally dissolved not later than June 30, 2020. The
report shall address whether the board of directors of the Massachusetts Department of
Transportation shall govern the authority after the dissolution of the FMCB.
SECTION 80I. Notwithstanding sections 80 to 80H, inclusive, no existing rights of the holders
of bonds, notes and other financing obligations issued by or on behalf of the Massachusetts Bay
Transportation Authority under chapter 161A of the General Laws shall be impaired and nothing
in this act shall be construed to alter or grant the power to alter existing agreements securing
such bonds or other obligations, hedge agreements or investment contracts pertaining thereto,
other than in accordance with their terms. The authority shall maintain the covenants and
agreements of the trust agreements, bond resolutions and other instruments pertaining to such
bonds and other obligations secured thereunder so long as such bonds and other obligations shall
remain outstanding. The FMCB shall not control, and shall not have the power to alter or
otherwise impair, the trust imposed in the third paragraph of subsection (a) of section 35T of
chapter 10 of the General Laws and shall not have the power to alter or otherwise impair the
other commonwealth covenants set forth in said third paragraph. The commonwealth hereby reaffirms such trust and other covenants. and
by inserting after section 109 the following 2 sections:SECTION 109A. Sections 80A to 80I, inclusive, are hereby repealed.
SECTION 109B. Section 109A shall take effect on June 30, 2020.

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