U+YPass combined Pilot Program Presentation

Youth Pass and University Pass Pilot Programs: Proposal

Introduction

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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.



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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.



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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.



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Goals



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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.



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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).



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Pilot Description



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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.



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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.



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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.



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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.



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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



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Revenue/Cost Projections



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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



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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



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Youth Pass Revenue/Cost Projections



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• 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



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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



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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



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Documents

U+YPass combined Pilot Program Presentation