Operating Budget Stability
FY16 Recap
Report to Fiscal and Management Control Board
FY16 Performance Against FY15
Operating expense growth held to zero in FY16;
Structural deficit down 28% compared to FY15 – fare recovery ratio at 41%
FY16 PERFORMANCE AGAINST FY15
EXPENSES
REVENUES
($M)
$
VARIANCE
%
VARIANCE
FY15 ACTUAL
FY16 ACTUAL
$646.0
$678.5
$32.5
5.0%
$1,157.3
$1,183.7
$26.4
2.3%
$1,803.3
$1,862.1
$58.9
3.3%
$727.6
$735.7
$8.2
1.1%
$781.2
$1,508.8
$768.6
$1,504.3
($12.6)
($4.5)
-1.6%
-0.3%
$413.4
$443.7
$30.3
7.3%
Total Expenses
$1,922.3
$1,948.0
$25.8
1.3%
Structural Deficit
($119.0)
($85.9)
$33.1
-27.8%
Operating Revenues
Non-Operating
Revenues
Total Revenues
Wages, Benefits and
Payroll Taxes
Non-Wage
Operating Expenses
Debt Service
Fare Recovery Ratio
Revenue Recovery Ratio
Fiscal and Management Control Board
40%
43%
41%
45%
Draft for Discussion & Policy Purposes Only
2
FY16 Performance Against FY15
Rate of operating expense growth was lowest for MBTA in at least 15 years
15 Year
Average
Note: Energy costs were $10.2M lower compared to prior year; excluding lower energy costs, Opex growth would have been 0.4% for FY16
Source: MBTA Internal Data
Fiscal and Management Control Board
Draft for Discussion & Policy Purposes Only
3
FY16 Performance Against FY16 Budget
Lower operating costs, higher own-source revenues and lower debt services
enabled the MBTA to reduce structural deficit by 50% compared to budget
Source: MBTA Internal Data. Analysis above excludes revenue from monthly FY16 Additional Assistance payments
Fiscal and Management Control Board
Draft for Discussion & Policy Purposes Only
4
FY16 Performance Against FY16 Budget
Cost control and strong own-source revenue growth cut FY16 projected
structural deficit by 50%, to $86M. Overtime down 21%
FY16 PERFORMANCE AGAINST FY16 BUDGET
EXPENSES
REVENUES
($M)
$
VARIANCE
%
VARIANCE
FY16 BUDGET
FY16 ACTUAL
$667.5
$678.5
$11.0
1.6%
$1,183.9
$1,183.7
($0.2)
0.0%
$1,851.4
$1,862.1
$10.7
0.6%
$765.7
$735.7
($29.9)
-3.9%
$803.2
$1,568.9
$768.6
$1,504.3
($34.6)
($64.5)
-4.3%
-4.1%
$452.1
$443.7
($8.4)
-1.9%
Total Expenses
$2,021.0
$1,948.0
($72.9)
-3.6%
Structural Deficit
($169.6)
($85.9)
$83.6
-49.3%
Operating Revenues
Non-Operating
Revenues
Total Revenues
Wages, Benefits
and Payroll Taxes
Non-Wage
Operating Expenses
Debt Service
Fare Recovery Ratio
Revenue Recovery Ratio
Fiscal and Management Control Board
39%
43%
41%
45%
Draft for Discussion & Policy Purposes Only
5
FY16 Performance Against FY16 Budget
Revenues exceeded budget by $11M driven by own-source growth
Total
Source: MBTA Internal Data
Fiscal and Management Control Board
Draft for Discussion & Policy Purposes Only
6
FY16 Performance Against FY16 Budget
Operating expenses $64M less than budget;
Overall expenses fell across the Authority
Total
Note: Lower energy costs contributed $19.6M of the $64.5M operating expense variance against budget ($4.6M CR fuel; $4.1M bus fuel; $10.9M
power/utilities).
Source: MBTA Internal Data
Fiscal and Management Control Board
Draft for Discussion & Policy Purposes Only
7
Service Reliability Metrics
Real-time tracking of service reliability metrics:
Heavy Rail (subway) and Commuter Rail targeting OTP of 90%
COMMUTER RAIL
SUBWAY
Source: MBTAbackontrack.com
Fiscal and Management Control Board
Draft for Discussion & Policy Purposes Only
8
Service Reliability Metrics
Goal is to continue to improve OTP, while limiting non-essential spending
Note: Red, Blue, and Orange line data not available before March; for subway, on-time performance (OTP) measured as
% of customers who waited less than the schedule time between trains; for commuter rail, OTP measured as % of
trains that arrive at their final destination no more than 4 min. and 59 sec. after scheduled arrival time
Source: MBTAbackontrack.com
Fiscal and Management Control Board
Draft for Discussion & Policy Purposes Only
9