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New Boston bus program blows its budget

BOSTON — Jim Farmer, the head of the state agency overseeing the new regional bus service in Boston, resigned this morning.

The Massachusetts Department of Transportation announced that Farmer, who was originally put in charge of the service before it was relaunched in August, tendered his resignation after the department’s board questioned his performance.

Farmer, who is also director of the Massachusetts Bay Transportation Authority, is one of several key employees at MBTA who, in recent months, have been moved aside because of problems at the agency.

MBTA spokesman Joe Pesaturo said Farmer, a former Green Mountain Railroad executive who worked in New Hampshire and Vermont before coming to MBTA, will stay with the agency as a consultant.

Pesaturo said the MBTA’s transportation department was handed a surplus of $1.5 million by the Legislature at the start of the year. The department immediately began spending the money on the regional bus system, Pesaturo said.

That included $500,000 for the hiring of Farmer as deputy MBTA general manager and $400,000 for his deputy, Mark O’Neill, a longtime MBTA employee who oversees its largest division, the Blue Line.

O’Neill also served as general manager at the Massachusetts Bay Transportation Authority before it was split off as a separate agency in 1997.

O’Neill’s hiring was announced in January. He started work in April and was sworn in as his new agency’s chief executive in July.

Pesaturo said he could not comment specifically about the resignations. But he said the MBTA’s transportation department had been hit with an annual budget surplus that made it a “source of concern” that the agency had “gone overboard in some of the initiatives and programs it was supporting.”

“One of the responsibilities of the management team and the board is to manage, and they see a budget that has gone overboard,” Pesaturo said.

The state Legislature, which provided the MBTA with $731 million last year, recently gave the agency an

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