Mark Alan Lovewell

Staying Afloat

No Island institution has escaped the crushing effects of the coronavirus crisis, including the Steamship Authority.

No Island institution has escaped the crushing effects of the coronavirus crisis, including the Steamship Authority. Traffic on ferries is now all but at a standstill. Cash is running dangerously low.

The boat line which is the lifeline to the two Islands is facing a historic and unprecedented financial crisis — one that is entirely not of its own making.

But the financial emergency has not been handled well in recent weeks by senior managers and board leaders, who pressed the panic button too soon with their letter to Governor Baker last week, shaking public confidence precisely at a time when calm, open public discussion and a level-headed approach was needed.

The letter from SSA general manager Robert Davis to Gov. Charlie Baker last Friday urgently seeking a financial bailout came out of the blue, and an accompanying press release only amplified the sense of crisis. The boat line was losing a million dollars a week and would be out of money by May 31, Mr. Davis said. And while not stated in so many words, the takeaway was unmistakable: ferries might have to shut down.

It all had the troubling effect of instilling fear among Islanders and consternation among people who are hoping to return to the Island when the pandemic threat abates.

The 1960 Steamship Authority enabling legislation, which has been revised several times, spells out procedures for boat line finances. In the event of an operating deficit, there is a process for seeking financial assistance from the state, after other avenues are exhausted, including the use of reserve funds. Ultimately any deficit would need to be made up by the taxpayers of Nantucket, Martha’s Vineyard, Barnstable, Falmouth and New Bedford.

That has not happened since 1962. So going to the governor to ask for money was a big deal.

Explaining the haste in getting out the letter with no prior public discussion and just days before a board meeting scheduled for Tuesday, Mr. Davis said he had learned about a possible new source of funding that required state approval, and had been advised by Beacon Hill politicians that the window was closing rapidly.

Then at the meeting Tuesday the letter was barely discussed. Other sources of funding were beginning to line up, and it appeared the urgency had suddenly faded.

It was the first meeting of the board since the outbreak began more than a month ago.

Islanders who know their history know that going to the state legislature for anything is a slippery slope, especially when it comes to Steamship Authority matters. The lesson was well learned in the late 1990s when powerful New Bedford politicians staged an aggressive coup to break apart the boat line for their own special interests. The two Islands fought back, and in a political compromise won the right to control a newly constituted governing board. It was a narrow escape from a state takeover for the ferry line, unique in the country because it operates without state and federal subsidy.

Some kind of subsidy may still be needed to bring the SSA out of this crisis; it’s too soon to say. But it should be an avenue of last resort.

The calamitous decline in ridership should be no surprise while both Nantucket and Martha’s Vineyard remain under stay-at-home orders. But the Steamship Authority has the opportunity to play a positive and constructive role in how and when the Island reopens and how that message is communicated.

Suggesting that it may soon be out of business is a poor way to start.

Comments

Submitted by Anonymous (not verified) on Thu, 04/23/2020 - 21:25

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DLH Tisbury

Keep one boat on reduced service, reduce freight boats, cut the fat from the SSA in the office and when laying people off. MV needs food stuffs on a regular basis most everything else might need to be delivered without instant gratification.
I am surviving barely on my small savings. For others, I'm concerned. It might be time for the Fed gov. To think of all the hardware in tents, vehicles, storage pods, food, tools, masks etc. they left behind on bases around the world. Go get some of it back and help those in need here.

Submitted by Anonymous (not verified) on Fri, 04/24/2020 - 10:35

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Tom Tisbury

This is a crisis that was not made by the SSA, but they dropped the ball when responding.

Yes, ridership is down. Just like every other mass-transit system, they should be cutting operations to match. Fewer ships, lower costs for fuel, reducing staff, delaying seasonal hiring - just like every other business or operation on the planet. Stop construction on the terminal. Stop all unnecessary spending.

Instead, they go straight to the purse for more money. And they do it in a clearly amateur manner.

Davis simply must go. Along with the Commissioners from New Bedford and Falmouth that can see no wrong.

Get a COO who knows how to run an operation of this scale. Clean house at the SSA and run it like the critical service that it is.

DB Edgartown

I agree with Tom’s comments. Is there any reason why the $70 million new terminal building construction project needs to go forward at this time. Mothball the project until sometime in the future when service returns and the financial condition of the Authority can justify moving forward.

Submitted by Anonymous (not verified) on Sat, 04/25/2020 - 22:16

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Maydavis Maydavis Oak bluffs

The crisis that has become standard operating procedure of the SSA is frightening. The lack of leadership by Bob Davis and Mark Rozum is shocking, yet considered standard practice and accepted by a Board of Governors gone astray. On Tuesday 4/14 Malkin met with County Commissioners and spoke at length about the debacle the SSA has become. Not once did he mention a pending letter to be sent to the Governor less than 48 hours later on 4/16, let alone disruption of service starting 5/31. He did carry on about how transparent he is though, does that mean they hid the letter or you did Mr. Malkin? How does a letter with the potential of so much collateral damage to the economy of Martha's Vineyard not get brought to the attention of local officials before being sent? If Malkin wants to stay on as Rep. he must immediately call for a formal vote of confidence for Davis and Rozum and vote the will of the people of Martha's vineyard which has been clearly represented all over the comments in the local papers and social media, NO CONFIDENCE. Do what is right Mr. Malkin and stand up for us, demonstrate you are not part of the collusion that currently exists throughout the SSA management. Your lack of leadership has done irreparable harm to the economy and lives of the community of Martha's Vineyard, what steps are you prepared to take to correct the harm you have brought to our community?

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