SSA Set to Vote on Fare Hikes Thursday at Cornell Theatre

By JAMES KINSELLA

When the Steamship Authority board of governors convenes next
Thursday morning at the Katharine Cornell Theatre, Vineyard governor
Marc Hanover anticipates voting for across-the-board rate increases to
fund next year's $78.3 million budget.

But he said it will be the last time.

"We really have to get a handle on this," Mr. Hanover
said earlier this week about the budget, slated to rise $4 million next
year. "We can't keep absorbing these additional
costs."

The SSA monthly meeting begins at 9:30 a.m. on the second floor of
the town hall in Vineyard Haven. The boat line board is scheduled to
vote on the budget and rates for 2007.

The proposed budget is 8.5 per cent higher than this year's
budget, which itself is $4 million higher than the 2005 budget.

Higher costs in the coming year include $2.6 million more for
depreciation, based on Authority capital projects, nearly $900,000 more
for fuel costs and over $800,000 more for employee health costs.

Earlier this week, Authority general manager Wayne Lamson said the
final proposed operating budget is little changed from the preliminary
budget presented to the board at the September boat line meeting in
Hyannis.

"Even though oil prices have come down a little bit in the
past month or so, the staff has decide to stay with its original oil
price assumption of $70 per barrel, up from an assumed $65 per barrel in
the 2006 operating budget," Mr. Lamson said.

Of the $4 million in rate hikes in next year's budget, $3
million would come from the Vineyard route.

One-way passenger fares on the Vineyard route would rise 50 cents to
$6.50, and the off-season round trip excursion car fare for Islanders
will go up $7 to $52.

Mr. Hanover said he applauds cost-saving steps initiated by
Authority managers, such as reducing ferry vessel operating speeds to
hold down on fuel costs, and eliminating certain runs that had little
demand.

He also acknowledged that fuel, insurance and depreciation costs
from next year's scheduled introduction of the Island Home ferry
on the Vineyard route are helping to push the SSA's operating
budget higher.

In the past, however, he said rising traffic volumes helped cover
rising costs at the boat line.

But passenger and vehicle traffic has been falling at the Steamship
Authority, and is now at levels not seen since the late 1990s.

Mr. Hanover said he does not expect business to revive in the next
several years, and if rates continue to rise, travel on the boat line
will become increasingly cost-prohibitive.

The Vineyard governor said manning agreements between the Authority
and its unions lie at the heart of the problem. The Authority operates
ferries with substantially more staffing than required under Coast Guard
rules.

The boat line has yet to reach a new contract agreement with its
largest union, the Marine Engineers Beneficial Association, which
represents unlicensed workers on the ferries.

Mr. Hanover said that while he understands the unions are in place
to protect the jobs and interests of their members, he said they need to
recognize long-term trends affecting the financial health of the boat
line.

Of the $3 million to be raised on the Vineyard route, $950,000 would
come from passengers, $1.25 million from automobiles, $750,000 from
trucks, and $50,000 from higher parking rates.

Because both Falmouth and the Vineyard ports of Vineyard Haven and
Oak Bluffs charge 50-cent port embarkation fees, the proposed passenger
rate increase effectively translates into a $14 round-trip cost.

SSA managers also have proposed raising the one-way child or senior
citizen rate by 25 cents to $3.25; the 10-ride book by $4 to $52; and
the 46-ride monthly commuter book by $10 to $120.

Round-trip excursion rates in the off-season would rise to $52 for
vehicles under 17 feet, and to $72 for larger vehicles. Summer excursion
rates would increase by $10 to $83 for vehicles under 17 feet, and by
$10 to $103 for larger vehicles.

One-way commercial freight rates for trucks under 20 feet will
increase the same as for automobiles, with trucks 20 feet or longer
paying 8.5 per cent more.

The cost of an annual parking permit at Woods Hole would rise $50,
to $800, and the annual permit at Palmer avenue would increase $25, to
$575.