Bill > H3141

This bill amends existing law to establish a new mechanism for the Commonwealth of Massachusetts to provide financial assistance to the Massachusetts Bay Transportation Authority (MBTA), a public agency responsible for public transportation in the Boston metropolitan area, specifically concerning debt related to the Central Artery project. The key provision is that the state treasurer will enter into an agreement with the MBTA to provide "contract assistance" from the Commonwealth Transportation Fund. This assistance will cover all debt service obligations (payments on borrowed money) of the MBTA that originated from the Central Artery obligations of the commonwealth, which refers to the debt incurred by the state for the massive highway project in Boston. The agreement will allow the MBTA to pledge this contract assistance as security for any debt it issues, and this assistance will be considered a general obligation of the commonwealth, meaning the state's full faith and credit will be pledged to ensure these payments are made. The secretary of administration and finance will be responsible for annually determining the specific amount of MBTA debt stemming from the Central Artery project.