Home Public Works, Energy & Utilities Gov. signs transportation reform act

Gov. signs transportation reform act

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June 29, 2009

A transportation reform bill signed by Gov. Deval Patrick on June 26 will significantly modify the state’s transportation model for the first time in decades in order to streamline operations, share services and reduce costs.

Oversight of the state’s myriad transportation-related functions will be consolidated under a new mega-agency, the Massachusetts Department of Transportation (MassDOT). The department and its subdivisions – the Registry of Motor Vehicles, MassHighway, MassTransit, and Aeronautics – will be run by a secretary of transportation (as CEO) and a five-member board, to be appointed by the governor.

MassDOT will administer a new Transportation Trust Fund, which will receive all toll revenue from the Massachusetts Turnpike and the Tobin Bridge as well as revenue currently collected from Executive Branch agencies. The trust fund will pay for MassDOT operations as well as special obligation debt assumed by the agency.

A gas tax increase, proposed by the governor, is not included in the law.

The new act creates an Office of Planning and Programming within MassDOT to coordinate transportation planning and financing, in consultation with the secretary of Administration and Finance. The office will be the primary interface between the state’s metropolitan planning organizations and the federal government, replacing the Executive Office of Transportation.

The law includes a provision, proposed in the House bill and supported by the MMA, to establish a Regional Mobility Assistance Program. The program will help cities and towns with public works and transportation projects to promote the development, rehabilitation, and improvement of tourism-expansion corridors, the protection of historic centers, the improvement of mobility and access from neighboring states, and the promotion of local economic growth and the reliability of transportation facilities in rural and less-accessible regions of the state.

A Division of Mass Transit within MassDOT will contain both the Massachusetts Bay Transportation Authority and the regional transportation authorities. The RTAs will be required to adopt a forward-funding budgeting system by July 1, 2011.

The Massachusetts Highway Department will remain the administrator of the Chapter 90 program as well as the Small Town Roads Assistance Program and the Public Works Economic Development program – none of which was changed by the reform law.

The Massachusetts Turnpike Authority will be abolished on Jan. 1, 2010, and Big Dig debt held by the authority will be assumed by MassDOT.

Despite strong opposition by organized labor, the Legislature included a requirement that all MBTA employees and retirees be transferred to the state’s Group Insurance Commission. The law also eliminates the so-called “23 and out” early retirement benefit for future MBTA employees and makes certain retirees responsible for certain Medicare payments. Legislative leaders said these changes will save the state nearly $1 billion over the next 20 years.

The MassDOT portions of the transportation reform act, Chapter 25 of the Acts of 2009, are effective on Nov. 1, 2009.