u+ypass combined pilot program presentation
DESCRIPTION
UPass, Youth Pass detailsTRANSCRIPT
Introduction
Leading the Nation in Transportation Excellence
Massachusetts Bay Transportation AuthorityTen Park Plaza, Suite 3910, Boston, MA 02116
www.mbta.com
Introduction• In July, GM Scott and Secretary Davey signed an MOU with advocates.
• It stated that the MBTA would create a working group to develop a Youth Pass pilot program.
• The work would progress along with the complementary University Pass pilot program development.
Leading the Nation in Transportation Excellence
Massachusetts Bay Transportation AuthorityTen Park Plaza, Suite 3910, Boston, MA 02116
www.mbta.com
Introduction• UPass:
– Agreement for universities to purchase transit passes for allstudents for the academic year.
– Provides revenue for the MBTA and mobility at a reduced fare for students.
• Youth Pass:– Expand the $26 student pass to all people age 12‐18, regardless
of whether their school offers it, and selected people age 19‐21.– Intended to mitigate the youth transit affordability crisis.
• The pilots are designed to test these programs, better understand the market for the programs, and gather data for a cost/benefit analysis.
Leading the Nation in Transportation Excellence
Massachusetts Bay Transportation AuthorityTen Park Plaza, Suite 3910, Boston, MA 02116
www.mbta.com
Process Goals • Simplicity
– Pilots should be as simple as possible to implement.
• Analytics and logistics – Pilots should provide sufficient data collection and analysis to examine impacts.
– Be designed to discourage fraud.
• Transparency – Data will be shared between participating organizations and stakeholders.
Leading the Nation in Transportation Excellence
Massachusetts Bay Transportation AuthorityTen Park Plaza, Suite 3910, Boston, MA 02116
www.mbta.com
Goals
Leading the Nation in Transportation Excellence
Massachusetts Bay Transportation AuthorityTen Park Plaza, Suite 3910, Boston, MA 02116
www.mbta.com
Pilot Goals • Both programs: To test feasibility with regard to administration, distribution, fraud prevention and data collection.
• To collect and analyze data to better project the impacts of both programs and develop systems to implement them.
• Design the pilots to limit negative impacts on the MBTA’s revenue stream.
Leading the Nation in Transportation Excellence
Massachusetts Bay Transportation AuthorityTen Park Plaza, Suite 3910, Boston, MA 02116
www.mbta.com
Full Combined Program Goals • To mitigate affordability issues around transit fares expressed by area youth.
• To increase ridership and promote public transportation to young people
• Increase the MBTA’s overall fare revenue (no net cost).
Leading the Nation in Transportation Excellence
Massachusetts Bay Transportation AuthorityTen Park Plaza, Suite 3910, Boston, MA 02116
www.mbta.com
Pilot Description
Leading the Nation in Transportation Excellence
Massachusetts Bay Transportation AuthorityTen Park Plaza, Suite 3910, Boston, MA 02116
www.mbta.com
Pilot Description • UPass:
– Eligibility: Offered to schools near MBTA service at a 50% reduced fare off the full LinkPass price ($37.50 per student, per month).
– Either all full‐time undergraduates, or all undergrads and graduates.
– Selection: The MBTA will target Northeastern University, Tufts University and Harvard University for participation. All can participate.
Leading the Nation in Transportation Excellence
Massachusetts Bay Transportation AuthorityTen Park Plaza, Suite 3910, Boston, MA 02116
www.mbta.com
Pilot Description • UPass:
– Distribution / Fraud Prevention: The UPass is intended to be distributed as an embedded “Charlie” chip in student IDs.
– Marketing: The MBTA will develop information packages for university partners.
– Evaluation will include: (1) Ridership and Service Impacts, (2) Operating and Capital Cost Impacts, (3) Passenger Revenue Impacts, (4) Title VI Fare Equity Analysis.
– Cost: UPass expected to generate approximately $11m if all three institutions participate.
Leading the Nation in Transportation Excellence
Massachusetts Bay Transportation AuthorityTen Park Plaza, Suite 3910, Boston, MA 02116
www.mbta.com
Pilot Description • Youth Pass price and eligibility:
– Offer a $26 monthly pass, or a $7 7‐day pass to 1,500 participants through partner agencies in participating municipalities (Boston, Chelsea and Cambridge).
– Participants will be: Age 12‐18, Age 19 if still in school, or age 19‐21 via “targeting” screens.
– Screens include: Proof of enrollment in education program, workforce training program or very low income.
Leading the Nation in Transportation Excellence
Massachusetts Bay Transportation AuthorityTen Park Plaza, Suite 3910, Boston, MA 02116
www.mbta.com
Pilot Description • Youth Pass administration:
– Partner municipalities will be largely responsible for administration of the pass. LOIs are signed with MOUs to follow.
– Retail Sales Terminals will be distributed to partner agencies, participants will purchase pass at these locations.
Leading the Nation in Transportation Excellence
Massachusetts Bay Transportation AuthorityTen Park Plaza, Suite 3910, Boston, MA 02116
www.mbta.com
Pilot Description • Youth Pass duration and cost:
– To begin in July 2015 and last for 12 months.– Title VI Service & Fare Equity Analysis to be conducted so it can proceed beyond 6 months.
– Expected to result in $793,000, including forgone revenue (CTPS analysis) and administrative costs
Leading the Nation in Transportation Excellence
Massachusetts Bay Transportation AuthorityTen Park Plaza, Suite 3910, Boston, MA 02116
www.mbta.com
Revenue/Cost Projections
Leading the Nation in Transportation Excellence
Massachusetts Bay Transportation AuthorityTen Park Plaza, Suite 3910, Boston, MA 02116
www.mbta.com
Revenue/Cost Projections – UPass PilotPilot Universities (Undergrads)
Pilot Universities (All FT Students)
Gross Revenue $8,439,678 $15,723,603 Forgone Semester Pass revenue $567,017 $946,671
Forgone Revenue $1,866,982 $3,594,147
CharlieCard Costs $26,478 $49,329 Additional Administrative Costs $155,000 $155,000
Pilot Program Net Revenue $5,824,201 $10,978,456
Leading the Nation in Transportation Excellence
Massachusetts Bay Transportation AuthorityTen Park Plaza, Suite 3910, Boston, MA 02116
www.mbta.com
Revenue/Cost Projections – UPass Full Program
a. UPassGross Revenue
b. Lost Semester
Pass Revenue
c. ForgoneRevenue
d. CharlieCardCosts
UPassNet Revenue
47 Target Institutions $59,403,250 $5,712,267 $13,287,553 $186,363 $40,217,067
Administrative Costs $250,000
Net Revenue = a‐(b+c+d+e) $39,967,068
Leading the Nation in Transportation Excellence
Massachusetts Bay Transportation AuthorityTen Park Plaza, Suite 3910, Boston, MA 02116
www.mbta.com
Youth Pass Revenue/Cost Projections
Leading the Nation in Transportation Excellence
Massachusetts Bay Transportation AuthorityTen Park Plaza, Suite 3910, Boston, MA 02116
www.mbta.com
• Pilot Program:– $350,000 in net revenue loss– $443,000 in administrative costs
• Full Program:– Between $2m ‐ $4m as currently envisioned, depending on means testing criteria
– Estimates will be updated based on pilot program data
Next Steps
Leading the Nation in Transportation Excellence
Massachusetts Bay Transportation AuthorityTen Park Plaza, Suite 3910, Boston, MA 02116
www.mbta.com
Next Steps – UPass• Continue discussions with University administration, involving the CFO and other high‐level officials
• Develop contractual agreements • Develop evaluation plan• Develop implementation plans
Leading the Nation in Transportation Excellence
Massachusetts Bay Transportation AuthorityTen Park Plaza, Suite 3910, Boston, MA 02116
www.mbta.com
Next Steps – Youth Pass• The pilot cost is expected to be offset by revenue from the UPass pilot
• MBTA and advocates will continue to work with partners in Boston, Chelsea and other municipalities, signing MOUs by March
• Detailed data will be gathered and analyzed to test all assumptions made and measure the impacts of the pass programs
Leading the Nation in Transportation Excellence
Massachusetts Bay Transportation AuthorityTen Park Plaza, Suite 3910, Boston, MA 02116
www.mbta.com