Bill > H3003

This bill amends existing law to establish a new way for the Commonwealth of Massachusetts to provide financial assistance to the Massachusetts Bay Transportation Authority (MBTA), a public agency responsible for most public transportation in the Boston metropolitan area. Specifically, it directs the state treasurer to enter into an agreement with the MBTA to provide "contract assistance" from the Commonwealth Transportation Fund. This assistance will cover all debt service obligations, meaning the payments of principal and interest on money borrowed, that the MBTA owes which originated from the Central Artery, a major highway project in Boston. The agreement will allow the MBTA to use this contract assistance as security for any debt it issues, and the Commonwealth's "faith and credit," meaning its full financial backing, 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 that stems from the Central Artery project.