Operating Budget Stability - PDF Free Download

Operating Budget Stability March Financial Update Report to

Agenda Executive Summary March Performance Against FY16 Budget March Performance Against Same Period Last Year Appendix Financial Detail: March Performance Against FY16 Budget and Recast Financial Detail: March Performance Against Same Period Last Year Revenue Detail: Own-Source, Fare Collection and Sales Tax 2

Executive Summary Structural deficit is 45 (78M) below budget and 39 (62M) below FY15 YTD March has maintained a low rate of operating expense growth at - 0.4 YTD compared with FY15 Operating expense controlled by active management of employee costs (5 below budget) and Materials & Services expenses (15 below budget) Own-Source revenues are up 43 (12.4M) over FY15 YTD 3

March Performance Against FY16 Budget Structural deficit has been reduced by 45.1 (78.1M) YTD (M) MARCH PERFORMANCE AGAINST FY16 BUDGET BUDGET REVENUES Operating Revenues 498.1 504.0 6.0 1.2 Non-Operating Revenues 844.8 841.5 (3.2) (0.4) Total Revenues 1,342.8 1,345.6 2.8 0.2 EXPENSES Wages, Benefits and Payroll Taxes 577.0 549.4 (27.7) (4.8) Non-Wage 597.9 558.2 (39.7) (6.6) Operating Expenses 1,174.9 1,107.6 (67.3) (5.7) Debt Service 341.3 333.3 (8.1) (2.4) Total Expenses 1,516.2 1,440.8 (75.4) (5.0) Structural Deficit (173.4) (95.3) 78.1 (45.1) Fare Recovery Ratio 39 42 Note: March structural deficit higher than year-end deficit due to timing of incurred revenues and expenses; Still on track to hit target FY16 recast 5

March Performance Against FY16 Budget Structural deficit has been reduced by 78M YTD March Budget to Actual Structural Deficit 200M 173.4M YTD Improvement of 78M 150M 100M -67.3M -2.8M -8.1M 95.3M 50M 0M Budget (9 months) Cost control Revenue Expansion Debt Service Actual (9 months) Source: MBTA Internal Data. Analysis above excludes revenue from monthly FY16 Additional Assistance payments (forecast at 187M for full FY16). 6

March Performance Against FY16 Budget Revenues have exceeded budget by 0.2 (2.8M), driven by Own-Source growth Total Revenues - Budget vs. Actual Comparison 740 741 700M 600M 500M 463 463 Budget (9 months) Actual (9 months) 400M 300M 200M 100M 0M Fare Revenue 35 41 Own-Source Revenue Sales Tax 81 81 Local Assessments 24 20 Other Income Total Variance Variance 0.1M 5.9M 0.8M 0.0M -4.0M 2.8M 0.0 16.6 0.1 0.0-17.1 0.2 Source: MBTA Internal Data 7

March Performance Against FY16 Budget Operating expenses are under budget by 5.7 (67.3M), due to decreases across the Authority Operating Expense (Excluding Debt Service) Budget vs. Actual Comparison 400M 300M 385 372 285 284 Budget (9 months) Actual (9 months) 200M 193 178 203 173 100M 0M Variance Variance Wages & OT Other Employee Costs Materials, Supplies & Services Commuter Rail 93 87 The RIDE & Local Service 16 15 Financial & Insurance Total -12.7M -15.0M -30.4M -1.3M -6.6M -1.5M -67.3M -3.3-7.8-14.9-0.4-7.0-9.1-5.7 Note: Lower energy costs contributed 15.5M of the 67.3M operating expense positive variance against budget (5.4M CR fuel; 3.4M bus fuel; 6.7M power/utilities). Source: MBTA Internal Data 8

March Performance Against Same Period Last Year Structural deficit is down 39.3 (61.6M) YTD from FY15 MARCH PERFORMANCE AGAINST SAME PERIOD LAST YEAR (M) FY15 YTD REVENUES Operating Revenues 483.3 504.0 20.8 4.3 Non-Operating Revenues 796.0 841.5 45.5 5.7 Total Revenues 1,279.3 1,345.6 66.3 5.2 EXPENSES Wages, Benefits and Payroll Taxes 545.1 549.4 4.3 0.8 Non-Wage 567.3 558.2 (9.1) (1.6) Operating Expenses 1,112.4 1,107.6 (4.8) (0.4) Debt Service 323.7 333.3 9.5 2.9 Total Expenses 1,436.1 1,440.8 4.7 0.3 Structural Deficit (156.8) (95.3) 61.6 (39.3) Fare Recovery Ratio 41 42 Note: March structural deficit higher than year-end deficit due to timing of incurred revenues and expenses; MBTA still on track to hit target FY16 recast 10

Revenue March Performance Against Same Period Last Year Total revenue has increased 5.2 (66.3M) YTD Total Revenue - vs. FY15 YTD 800M 708 741 FY15 YTD Actual (9 months) Actual (9 months) 600M 454 463 400M 200M 0M Sales Tax Fare Revenue 82 81 Local Assessments 29 41 Own-Source 6 20 Other Income* Total Change Change 32.9M 8.3M -0.8M 12.4M 13.4M 66.3M 4.7 1.8-1.0 43.1 218.8 5.2 *GLX Mitigation income from Mass DOT Source: MBTA Internal Data 11

Revenue March Performance Against Same Period Last Year Own-Source revenue is up 39.8 (11.7M) YTD due to advertising and recurring real estate Own-Source Revenue - vs. FY15 YTD 15 15M 11 13 FY15 YTD Actual (9 months) Actual (9 months) 13 10M 8 9 5M Change 0M Change Advertising Parking Recurring Real Estate Total 3.9M 5.1M 3.3M 12.3M 35.1 61.4 35.1 42.7 Note: Parking booked a large snow removal charge in March 2015 causing a large gap between FY15 and FY16 Source: MBTA Internal Data 12

Operating Expense March Performance Against Same Period Last Year Operating expense growth near zero over first 9 months Operating Expense (Excluding Debt Service) Year-on-year growth rate: -0.4 1,250M 1,000M 1,112M 1,108M 750M 500M 250M 0M FY15 YTD Actual (9 months) Actual (9 months) Source: MBTA Internal Data 13

Operating Expense March Performance Against Same Period Last Year Total Expenses (Including Debt Service) up 0.3 (4.8M) YTD Total Expenses (Including Debt Service) - vs. FY15 YTD 600M 545 549 FY15 YTD Actual (9 months) Actual (9 months) 400M 291 284 324 333 200M 0M Change Change Wages & Benefits 185 173 Materials & Services Keolis 77 87 The Ride & Local Service 14 15 Insurance Debt Service and Financial Svcs. Total 4.3M -11.9M -7.5M 9.7M 0.7M 9.5M 4.8M 0.8-6.5-2.6 12.6 5.0 2.9 0.3 Source: MBTA Internal Data 14

Operating Expense March Performance Against Same Period Last Year Employee costs up 0.8 (4.3M) YTD, with wage increases offset by lower overtime Total Employee Costs - vs. FY15 YTD Change in employee costs 4.3M 400M 329 339 FY15 YTD Actual (9 months) Actual (9 months) Wages Overtime 9.9M (8.5M) 300M Fringe expense 2.8M 200M 146149 Payroll taxes 0.1M 100M 42 33 28 28 0M Wages Overtime Pension and Other Fringe Payroll Taxes Change Change Total 9.9M -8.5M 2.8M 0.1M 4.3M 3.0-20.5 1.9 0.5 0.8 Source: MBTA Internal Data 15

Operating Expense March Performance Against Same Period Last Year Materials and services costs down 6.5 (11.9M) Materials and Services - vs. FY15 YTD 100M 75M 50M 110112 75 61 FY15 YTD Actual (9 months) Actual (9 months) Change in Materials and Services Services (11.9M) 2.1M Computer services 2.5 Contract cleaning (0.8) Engineering 3.2 Utilities (5.2) Temporary help 1.3 Other services 1.0 25M 0M Change Change Services Materials & Supplies 10 10 Insurance 4 4 Financial Service Charges Total 2.1M -14.0M 0.6M 0.1M -11.3M 1.9-18.7 5.7 2.3-5.7 Materials and Supplies (14.0M) Equipment components (11.1) Fuel (1.9) Maint. supplies/other materials (1.1) Insurance Financial Service Charges 0.6M 0.1M Source: MBTA Internal Data 16

March Performance Against FY16 Budget MBTA remains on track to reach year-end 95M Structural Deficit; Deficit higher than recast in March due to timing of incurred revenues and expenses MARCH PERFORMANCE AGAINST FY16 BUDGET MARCH PERFORMANCE AGAINST FY16 RECAST (M) BUDGET RECAST REVENUES Operating Revenues 498.1 504.0 6.0 1.2 500.1 504.0 3.9 0.8 Non-Operating Revenues 844.8 841.5 (3.2) (0.4) 858.4 841.5 (16.8) (2.0) Total Revenues 1,342.8 1,345.6 2.8 0.2 1,358.5 1,345.6 (12.9) (0.9) EXPENSES Wages, Benefits and 577.0 549.4 (27.7) (4.8) 552.9 549.4 (3.6) (0.6) Payroll Taxes Non-Wage 597.9 558.2 (39.7) (6.6) 559.2 558.2 (1.0) (0.2) Operating Expenses 1,174.9 1,107.6 (67.3) (5.7) 1,112.1 1,107.6 (4.5) (0.4) Debt Service 341.3 333.3 (8.1) (2.4) 335.2 333.3 (1.9) (0.6) Total Expenses 1,516.2 1,440.8 (75.4) (5.0) 1,447.3 1,440.8 (6.4) (0.4) Structural Deficit Fare recovery ratio (173.4) (95.3) 78.1 (45.1) (88.8) (95.3) (6.5) 7.3 39 42 41 42 18

Appendix Financial Detail: March Performance Against FY16 Budget and Recast Total Revenues are above budget by 0.2 (2.8M) MARCH PERFORMANCE AGAINST FY16 BUDGET MARCH PERFORMANCE AGAINST FY16 RECAST (M) BUDGET RECAST OPERATING Fares, all modes 462.7 462.8 0.1 0.0 460.6 462.8 2.1 0.5 Own-Source 35.4 41.2 5.9 16.6 39.5 41.2 1.8 4.5 Operating 498.1 504.0 6.0 1.2 500.1 504.0 3.9 0.8 NON-OPERATING Sales Tax 739.7 740.5 0.8 0.1 733.3 740.5 7.2 1.0 Local Assessment 81.4 81.4 0.0 0.0 101.8 81.4 (20.3) (20.0) Other 23.6 19.6 (4.0) (17.1) 23.3 19.6 (3.7) (15.9) Non-Operating 844.8 841.5 (3.2) (0.4) 858.4 841.5 (16.8) (2.0) Total Revenues 1,342.8 1,345.6 2.8 0.2 1,358.5 1,345.6 (12.9) (0.9) Fare recovery ratio 39 42 41 42 19

Appendix Financial Detail: March Performance Against FY16 Budget and Recast Employee expenses are below budget by 4.8 (27.7M) WAGES (M) MARCH PERFORMANCE AGAINST FY16 BUDGET BUDGET MARCH PERFORMANCE AGAINST FY16 RECAST RECAST Regular Wages 356.6 338.8 (17.8) (5.0) 338.6 338.8 0.1 0.0 Overtime 27.9 33.1 5.2 18.5 36.8 33.1 (3.7) (10.1) Wages 384.5 371.9 (12.7) (3.3) 375.4 371.9 (3.6) (0.9) Pension* 61.9 58.5 (3.3) (5.4) 58.4 58.5 0.1 0.3 BENEFITS AND TAXES Health 82.8 74.8 (8.1) (9.7) 75.5 74.8 (0.7) (0.9) Retiree Health Health & Welfare Fund 9.0 8.8 (0.2) (1.7) 8.7 8.8 0.1 1.1 Other Fringes 8.6 7.1 (1.5) (17.4) 7.2 7.1 (0.1) (0.9) Payroll Taxes 30.3 28.3 (2.0) (6.5) 27.8 28.3 0.5 1.8 Benefits and taxes 192.5 177.5 (15.0) (7.8) 177.5 177.5 0.0 0.0 Total Wages, Benefits, Taxes 577.0 549.4 (27.7) (4.8) 552.9 549.4 (3.6) (0.6) *Pension includes Main Fund, Police, Deferred Compensation Supplement, 401(a) MBTA Match 20

Appendix Financial Detail: March Performance Against FY16 Budget and Recast Total Non-Wage Expenses are below budget by 6.6 (39.7M) [pp. 1/2] MARCH PERFORMANCE AGAINST FY16 BUDGET MARCH PERFORMANCE AGAINST FY16 RECAST (M) BUDGET RECAST Materials 52.1 45.0 (7.1) (13.6) 49.1 45.0 (4.2) (8.5) MATERIALS AND SERVICES Services 72.9 61.1 (11.8) (16.1) 61.5 61.1 (0.4) (0.7) Fuel 19.1 15.7 (3.4) (17.7) 15.1 15.7 0.6 4.0 Utilities 40.3 33.6 (6.7) (16.6) 32.1 33.6 1.5 4.5 Contract Cleaning Materials and Services 19.1 17.6 (1.4) (7.5) 18.7 17.6 (1.1) (5.9) 203.3 173.0 (30.4) (14.9) 176.6 173.0 (3.6) (2.1) INSURANCE Insurance 11.3 10.3 (1.0) (8.4) 11.4 10.3 (1.1) (9.4) 21

Appendix Financial Detail: March Performance Against FY16 Budget and Recast Total Non-Wage Expenses are below budget by 6.6 (39.7M) [pp. 2/2] MARCH PERFORMANCE AGAINST FY16 BUDGET MARCH PERFORMANCE AGAINST FY16 RECAST (M) BUDGET RECAST COMMUTER RAIL Fixed Price 230.6 230.6 (0.0) 0.0 230.6 230.6 0.0 0.0 Extra Work and Services 24.0 28.1 4.1 17.0 24.1 28.1 4.0 16.6 Fuel 30.4 25.0 (5.4) (17.6) 23.8 25.0 1.2 5.0 Commuter Rail 285.0 283.7 (1.3) (0.4) 278.5 283.7 5.2 1.9 LOCAL SERVICE THE RIDE 81.7 75.4 (6.3) (7.8) 76.6 75.4 (1.2) (1.5) Ferry 9.8 9.7 (0.1) (1.4) 9.7 9.7 0.0 0.0 LSS Other 1.9 1.8 (0.1) (4.3) 1.8 1.8 (0.0) (1.2) Local Service 93.4 86.8 (6.6) (7.0) 88.0 86.8 (1.2) (1.4) OTHER Financial Service Charges 4.8 4.3 (0.5) (10.6) 4.6 4.3 (0.3) (6.3) Non-Wage Expenses: 597.9 558.2 (39.7) (6.6) 559.2 558.2 (1.0) (0.2) 22

Appendix Financial Detail: March Performance Against FY16 Budget and Recast Debt Service expense is below budget by 2.4 (8.1M) MARCH PERFORMANCE AGAINST FY16 BUDGET MARCH PERFORMANCE AGAINST FY16 RECAST (M) BUDGET RECAST Interest 178.6 171.6 (7.0) (3.9) 173.5 171.6 (1.9) (1.1) DEBT SERVICE Principal 159.3 158.3 (1.0) (0.6) 158.3 158.3 0.0 (0.0) Lease 3.4 3.4 (0.0) (0.8) 3.4 3.4 (0.0) (0.0) Debt Service 341.3 333.3 (8.1) (2.4) 335.2 333.3 (1.9) (0.6) 23

Appendix Financial Detail: March Performance Against Same Period Last Year Total Revenues are above FY15 YTD by 5.2 (66.3M) MARCH PERFORMANCE AGAINST SAME PERIOD LAST YEAR OPERATING (M) FY15 YTD EXPLANATION Fares, all modes 454.5 462.8 8.3 1.8 Ridership improvement Own-source 28.8 41.2 12.4 43.1 Operating 483.3 504.0 20.8 4.3 Stronger advertising and real estate proceeds NON-OPERATING Sales Tax 707.6 740.5 32.9 4.7 ~11M in difference between FY16 and FY15 due to increase in Base Tax Revenue; ~10M due to timing of booked revenue; timing discrepancy to be corrected in March Local Assessment 82.3 81.4 (0.8) (1.0) Higher statutory amount Other 6.1 19.6 13.4 218.8 Non-Operating 796.0 841.5 45.5 5.7 Federal preventative maintenance funds GLX mitigation income Total Revenues 1,279.3 1,345.6 66.3 5.2 Fare recovery ratio 41 42 25

Appendix Financial Detail: March Performance Against Same Period Last Year Total Wage, Benefit and Tax expenses are below FY15 YTD by 0.8 (4.3M) MARCH PERFORMANCE AGAINST SAME PERIOD LAST YEAR (M) FY15 YTD EXPLANATION WAGES BENEFITS AND TAXES Regular Wages 328.9 338.8 9.9 3.0 Collective bargaining increases Overtime 41.6 33.1 (8.5) (20.5) Storm overtime down Wages 370.5 371.9 1.4 0.4 Pension* 53.0 58.5 5.5 10.4 Health 77.5 74.8 (2.7) (3.5) GIC cost control Retiree Health Health & Welfare Fund Tied to higher wage spending and higher contribution rate GIC cost control 10.9 8.8 (2.1) (19.2) Higher participation rates Other Fringes 5.0 7.1 2.1 42.9 Payroll Taxes 28.1 28.3 0.1 0.5 FICA tied to wages Benefits and taxes 174.6 177.5 3.0 1.7 Total Wages, Benefits and Taxes 545.1 549.4 4.3 0.8 *Pension includes Main Fund, Police, Deferred Compensation Supplement, 401(a) MBTA Match 26

Appendix Financial Detail: March Performance Against Same Period Last Year Non-Wage Expenses are below FY15 YTD by 1.6 (9.1M) [pp. 1/2] MARCH PERFORMANCE AGAINST SAME PERIOD LAST YEAR (M) FY15 YTD EXPLANATION MATERIALS AND SERVICES Materials 57.0 45.0 (12.1) (21.1) Services 53.0 61.1 8.1 15.2 Fuel 17.6 15.7 (1.9) (10.7) Bus fuel savings Equipment components and maintenance supplies Computer engineering, temporary help, consulting services Utilities 38.9 33.6 (5.3) (13.7) Electricity and traction power savings Contract Cleaning Materials and Services 18.4 17.6 (0.8) (4.1) Contractual 184.9 173.0 (11.9) (6.5) INSURANCE Insurance 9.8 10.3 0.6 5.7 Added underground station coverage 27

Appendix Financial Detail: March Performance Against Same Period Last Year Non-Wage Expenses are below FY15 YTD by 1.6 (9.1M) [pp. 2/2] MARCH PERFORMANCE AGAINST SAME PERIOD LAST YEAR (M) FY15 YTD EXPLANATION COMMUTER RAIL Fixed Price 216.0 230.6 14.5 6.7 Contractual increases Extra Work and Services 48.1 28.1 (19.9) (41.4) Contractual increases Fuel 27.2 25.0 (2.2) (8.0) Train fuel prices Commuter Rail 291.3 283.7 (7.5) (2.6) LOCAL SERVICE THE RIDE 66.1 75.4 9.3 14.0 Contractual increases Ferry 9.5 9.7 0.2 2.0 Contractual increases LSS Other 1.6 1.8 0.2 15.4 Contractual increases Local Service 77.2 86.8 9.7 12.6 OTHER Financial Service Charges 4.2 4.3 0.1 2.3 Credit Card fees from higher fare revenue Non-Wage Expenses: 567.3 558.2 (9.1) (1.6) 28

Appendix Financial Detail: March Performance Against Same Period Last Year Debt Service Expense is below FY15 YTD by 2.9 (9.5M) MARCH PERFORMANCE AGAINST SAME PERIOD LAST YEAR (M) FY15 YTD EXPLANATION Interest 180.1 171.6 (8.5) (4.7) Contractual per amortization schedule DEBT SERVICE Principal 139.9 158.3 18.3 13.1 Contractual per amortization schedule Lease 3.7 3.4 (0.3) (7.5) Contractual per amortization schedule Debt Service 323.7 333.3 9.5 2.9 29

Appendix Revenue Detail: Own-Source Own-Source revenues are above FY15 YTD by 42.7 (12.3M) March PERFORMANCE AGAINST SAME PERIOD LAST YEAR (M) FY15 YTD EXPLANATION OWN-SOURCE REVENEUE Advertising 11.1 15.0 3.9 35.1 Parking 8.3 13.4 5.1 61.4 Recurring Real Estate (nonparking) Own-Source revenue 9.4 12.9 3.3 35.1 28.8 41.2 12.4 43.1 Steady static advertising growth, maturity of digital urban panels Decrease in snow removal expense from FY15 due to better weather 31

Appendix Revenue Detail: Own-Source Recurring Real Estate revenues are above FY15 by 35.1 (3.3M) March Performance Against Same Period Last Year (9 MONTHS) (M) FY15 YTD EXPLANATION RECURRING REAL ESTATE REVENEUE Massport (airport) shuttle 1.5 1.5 0.0 1.5 Consistent with prior year South Station Intermodal+CR 0.7 1.3 0.6 85.7 Net MRG (Mass Realty Group) 7.2 10.1 2.9 40.3 (See Below) Revenue Land Rental 1.6 2.2 0.6 37.5 Renegotiation of contract Utilities 0.8 0.8 0.0 0 Consistent with prior year Telecom 4.4 5.7 1.3 29.5 Renegotiation of contract Concessions 1.9 1.7 (0.2) (10.5) Lease expirations Advertising 2.3 2.9.6 26.1 New lease rollout MRG fees and expenses (3.8) (3.2).6 3.3 Recurring Real Estate Revenue 9.4 12.9 3.3 35.1 32

Appendix Revenue Detail: Fare Collection Fare revenue is up 1.8 (8.3M) YTD Fare Revenue - vs. FY15 YTD 300M 300 301 250M FY15 YTD Actual (9 months) Actual (9 months) 200M 150M 154 162 100M 50M Change Change 0M Subway, Bus, Ferry, RIDE 0.7M Commuter Rail (Unallocated) 7.6M Total 8.3M 0.2 4.9 1.8 Note: Chart above shows unallocated commuter rail revenue, prior to CTPS allocation for linked trips to other modes. Source: MBTA Internal Data 33

Commuter Rail Revenue Overview Commuter rail revenue is up 5 over FY15, and up 11 from FY14 YTD (9 months) Commuter Rail Fare Revenue (Unallocated) 200M 154M 150M 146M 162M YTD Commuter Rail Revenue Growth (9 months) FY16 / FY15: 5 FY16 / FY14: 11 100M 50M 0M FY14 YTD Actual (9 months) FY15 YTD Actual (9 months) Actual (9 months) Note: Chart above shows unallocated commuter rail revenue, prior to CTPS allocation for linked trips to other modes. Subway, Bus, Ferry, RIDE revenue includes all adjustments to total fare revenue Source: MBTA Internal Data 34

Commuter Rail Revenue Overview Commuter rail fare revenue could reach 215M in FY16 Total annual (12 month) unallocated commuter rail revenue: FY12: 152M FY13: 186M FY14: 196M FY15: 205M Mar FY16 TTM: 212M If current growth trend continues (5 year-on-year), FY16 commuter rail revenue could reach 215M by fiscal-year end 35

Commuter Rail Revenue Overview Monthly trend in commuter rail revenue has been positive Monthly MBTA Commuter Rail Revenue (Unallocated) YTD FY16/FY15 Growth: 5 20M 15M 17.1 16.8 14.7 16.3 19.2 18.0 18.4 18.4 18.5 17.6 17.8 16.7 17.4 16.7 15.6 18.1 Average 17.3M 10M 5M 0M Dec14 Jan15 Feb15 Mar15 Apr15 May15 Jun15 Jul15 Aug15 Sep15 Oct15 Nov15 Dec15 Jan16 Feb16 Mar16 Year-over Year Growth 4.4 2.0 0.9 1.5 5.2 3.8 3.8 14.0 10.9 Note: Chart above shows unallocated commuter rail revenue, prior to CTPS allocation for linked trips to other modes. Source: MBTA Internal Data 36

Commuter rail revenue is up 4.9 for the first 9 months of FY16 Commuter Rail Fare Revenue (Unallocated) Monthly Revenue Growth Rate over FY15 15 14.0 10.9 10 5 5.2 YTD FY16/FY15 4.4 Growth: 4.9 2.0 1.5 3.8 3.8 0.9 0 Jul16 Aug16 Sep16 Oct16 Nov16 Dec16 Jan16 Feb16 Mar16 Commuter Rail Revenue (Unallocated) - Monthly Growth Rate Note: Chart above shows unallocated commuter rail revenue, prior to CTPS allocation for linked trips to other modes. Source: MBTA Internal Data 37

Subway, Bus, Ferry & RIDE total revenue is level for the first 9 months Monthly Subway, Bus, Ferry & RIDE Revenue YTD FY16/FY15 Growth: 0.2 40M 30M 36.2 36.0 35.8 34.5 33.3 33.5 34.4 31.2 31.4 31.0 32.4 31.5 30.7 30.5 28.6 33.3 Average 32.8M 20M 10M 0M Dec14 Jan15 Feb15 Mar15 Apr15 May15 Jun15 Jul15 Aug15 Sep15 Oct15 Nov15 Dec15 Jan16 Feb16 Mar16 Note: Includes adjustments to total fare revenue Source: MBTA Internal Data Year-over Year Growth 0.5-1.7 1.0 1.8-0.1 0.8-2.3 6.8-3.7 38

Appendix Revenue Detail: Sales Tax Dedicated sales tax up 5.6 over FY15 YTD Sales and Use Tax Collections (Exclusive of Meals) dedicated to MBTA* YTD FY16/FY15 Growth: 5.6 100M FY15 FY16 80M 60M 68 72 62 66 60 63 65 68 60 64 61 65 76 79 56 58 56 60 56 65 70 40M 20M 0M Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Growth 6.1 5.4 6.5 5.4 5.3 6.3 3.8 4.6 7.2 (month-on-month) *MBTA receives 16 of Sales and Use Tax Collections excluding Meals Tax ^Does not include 160M in annual additional dedicated revenue Source: MBTA Internal Data; MA Monthly Revenue Collection 39