2027 preliminary Operating Budget and rate adjustment information
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The Steamship Authority has released our preliminary 2027 Operating Budget. Based on the last 12 months of vehicle and passenger traffic and projected expenses, the SSA’s “bottom line” comes to just $573,246, short of the approximately $10 million we target to fund our current bond payments and future capital projects. That’s led to a set of preliminary fare adjustments that, on average, are about 5% in every category.
The SSA’s fuel hedging program safeguarded our ratepayers from $4.1 million in price spikes, with marine diesel fuel costs averaging approximately $3 per gallon versus approximately $5 per gallon on the market. However, the cost of these hedges has increased for 2027 due to the volatility in the market. The budgeted cost of fuel oil, therefore, is the biggest increase in the 2027 budget, up $4.9 million. If fuel costs go down in 2027, the SSA will pay a lower price, and the savings can be used to accelerate 2028 expenses into 2027 and reduce the need for future rate adjustments in that year’s budget.
We’ll be on the road in our port communities and online in the coming weeks for further discussions about the preliminary budget and rate adjustments. In the meantime, check the materials below for more information.
October 19, 2026, news release on budget open houses
2027 Operating Budget open house materials
Meeting video
Nantucket: 4-6 p.m. Monday, October 26, 2026, Nantucket Hotel and Resort, 77 Easton Street, Nantucket
Martha's Vineyard: 5-7 p.m. Tuesday, October 27, 2026, Martha's Vineyard Hebrew Center, 130 Center Street, Tisbury
Falmouth: 5-7 p.m. Wednesday, October 28, 2026, SSA Administrative Office, 228 Palmer Avenue, Falmouth
Zoom option added: Click https://us02web.zoom.us/j/87573932652 at the time of the meeting to join.
October 20, 2026, Board meeting materials
Preliminary Operating Budget presentation
Staff Summary A-731: Preliminary Operating Budget
Staff Summary A-732: Preliminary Rate Adjustments
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Statement of revenues and expenses (with preliminary fare adjustments)
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Preliminary rate adjustments — Woods Hole-Martha's Vineyard route
Budget and rate adjustment discussion at Board meeting
October 13, 2026, Port Council materials
Preliminary Operating Budget presentation
Staff Summary A-731: Preliminary Operating Budget
• Statement of revenues and expenses
Staff Summary A-732: Preliminary Rate Adjustments
• Statement of revenues and expenses (with preliminary fare adjustments)
• Preliminary rate adjustments — Woods Hole-Martha's Vineyard route
• Preliminary rate adjustments — Hyannis-Nantucket route
Budget and rate adjustment discussion at Port Council meeting
Frequently-asked questions
Why not implement a temporary fuel surcharge, as other ferry services have done, rather than a fare increase?
SSA staff have considered this approach, but since the bulk of our reservations are made when the summer schedule opens early in the year, collecting a surcharge after the fact would be logistically difficult. We believe it will be a better customer service experience to include these expected costs in the year-round budget and charge accordingly for tickets.
Is there another way to offset the anticipated fuel cost increases other than raising fares? Is service reduction an option?
Service reduction is an option, but the trips that would be cut are ones in the off-season that our island customers depend on for their travel and reduce our year-round deck officer staffing, which is an important part of our retention effort.
Will fares, if increased, be reduced if the fuel price situation improves in 2027?
If fuel prices are lower than forecast, the SSA would have the opportunity to increase available funding for its capital projects and accelerate projects planned for 2028. Absorbing those costs in 2027 would reduce the need for fare adjustments in 2028.
Are there any state or federal funds available to help offset rising fuel costs and avoid rate increases?
The Authority is projected to use about $9 million in federal funding in 2027, which is provided through a formula-based allocation through the Department of Transportation. Those funds can only be used for maintenance and capital projects and are already helping to offset the burden on the ratepayers for these projects. The SSA does not receive any state funding.
How much did the Authority save through its fuel “hedging” activity in 2026? What is the estimate for 2027?
The Authority received more than $4.1 million in fuel hedge refunds through September 30, 2026. The fuel hedging program acts as insurance on our exposure to fuel costs. When the cost of fuel is below the hedged price, the Authority pays the lower price. When the cost of fuel exceeds the hedged price, the Authority receives proceeds from its hedge. As hedge proceeds are only provided when the actual cost of fuel exceeds the hedge price, it’s unknown if any proceeds will be issued in the future, but the hedge program provides price certainty and is a form of insurance against fuel price spikes.