The Maine Department of Transportation (MDOT) announced Friday that it will be adopting a new fare structure for the Maine State Ferry Service (MSFS) as of this August that will increase revenue by 18.4 percent.
To accomplish this, the MDOT will be raising the price of nearly all ferry tickets later this summer, with an expected effective date of August 1.
The MDOT has also indicated that another price increase may be on the horizon, with discussions starting as soon as this fall.
The last time that the MSFS raised its rates was in 2019 at which point they were increased by about 17 percent.
According to a press release published by the Department, operating costs have risen significantly over the past few years due to inflation, thus necessitating an increase in fares.
Accounted for when calculating the new rate hike were “negotiated personnel pay increases, fuel, and vessel repairs.”
The MDOT went on to explain that the price hikes were “weighted higher for the limited and high-demand slots for cars and trucks” rather than for passengers and were also skewed more heavily toward the peak season of June through September.
“The adoption of this new fare structure follows months of analysis, communication with the Ferry Service Advisory Board, and public process pursuant to the state’s rulemaking process,” the MDOT wrote.
The Department went on to explain that capital expenditures — such as shoreside infrastructure and new vessels — will continued to be paid for in full with state and federal funding.
“There are currently three new vessels in various stages of production,” they said. “Combined, these vessels and shoreside infrastructure represent an investment of more than $100 million in state and federal funds.”
It was also indicated in Friday’s press release that the Department may begin considering another rate increase as early as this fall due to “staffing challenges” stemming from “a tight maritime labor market” that have “led to numerous cancellations that have primarily impacted one of the two ferries serving Vinalhaven daily.”
“MaineDOT anticipates needing more funding to cover anticipated compensation increases to MSFS crew members and contracted staffing costs necessary to minimize the cancellation of ferry trips,” they wrote. “The details of these additional costs are still being defined and quantified, but they are substantial and were not considered in this newly adopted rate structure.”
“Accordingly, it is anticipated that another public fare increase rulemaking process will need to start soon – perhaps as early as this fall – to account for increased staffing costs,” they concluded. “The goal of this upcoming rulemaking process will be to have a fiscally sustainable MSFS operational budget that complies with statutory cost shares in effect by June 1, 2025.”
Click Here to Read the MDOT’s Full Press Release
The new rates that will likely be go into effect for the MSFS as of August 1 are as follows:
This rate hike from the Maine DOT comes almost immediately after the Maine Public Utilities Commission (PUC) announced that it would likely not be investigating the Casco Bay Island Transit District (CBITD) for the reconfigured fare schedule it proposed in April.
[RELATED: Maine PUC Unlikely to Investigate Casco Bay Ferry for Proposed Changes to Fare Schedule]
As part of these updates, the CBITD voted to increase the cost of round-trip tickets for tourists and visitors while simultaneously decreasing the price of the long-term passes typically used by those who frequently travel to and from the islands.
Not only did the CBITD adjust ticket pricing, but it also made major structural changes to the ticketing system by imposing a flat fare for all islands and discontinuing the option to purchase commuter books of discounted tickets.
These efforts were designed to be coupled with spending cuts in hopes of reducing the Casco Bay Lines’ continued multi-million dollar operating losses by 25 percent, or about $1 million.
This marked the first time in 15 years that Casco Bay Lines has increased its ticket prices.
[RELATED: The Casco Bay Ferry Will Soon Become More Expensive for Visitors and Cheaper for Commuters]
In May, a petition signed by sixty ratepayers was filed with the Maine PUC asking the agency to investigate these changes.
This complaint alleged that the adjustments made by the CBITD were driven by “ulterior motives.”
Authored by attorney Andrew Doukas, the complaint suggested that the true motivation behind the changes is to reduce the flow of visitors to Peaks Island while also generating supplemental revenue to lower the cost of ferry service for residents.
[RELATED: Maine PUC to Investigate Proposed Price Hike for Casco Bay Ferry After Dozens Sign Petition]
The recommendation released Tuesday by the Maine PUC explains that, contrary to these accusations, members of the Commission believe that the CBITD acted within its authority and that the new rate structure properly balances the district’s financial needs with their passengers’ interests.
I’m a Democrat……I shouldn’t have to pay for anything.