SEPTA postpones budget plan review

By: Jason Gomes

Posted: 3/4/05

Governor Ed Rendell announced Feb. 28 a transit funding plan that would close the $62 million budget deficit for SEPTA during the fiscal 2005 year.

The Governor's plan would provide $412 million in new funding for public transit statewide and adequate transit funding until January 2007, according to a Feb. 28 South Eastern Pennsylvania Transportation Authority Press Release.

"On behalf of SEPTA riders and employees, we appreciate Governor Rendell's leadership on this long and difficult issue," SEPTABoard Chairman Pasquale Deon said.

"It has been our hope all along, that with sufficient funding we would not have to raise the fares or reduce transit service."

SEPTA will now review the details of the Governor's proposal and seek approval from the Delaware Valley Regional Planning Commission and then make a decision whether or not to keep transit fares and service at its present level. Although the plan was supposed to be implemented March 6, it will now be postponed to March 20.

The $412 million in new federal highway funds went far above the expected $85 million bailout that would have delayed the implementation of the plan until June, according to the March 1 edition of The Philadelphia Inquirer. In a speech conducted at Amtrak 30th Street Station, Rendell said he wanted to do more than the minimum to keep SEPTA afloat. He wanted to ensure that the riders who depend heavily on transit to get to work, school and other essential services that their services won't be cut and their fares won't be raised beyond their ability to pay.

Rendell also announced an executive order creating a nine-person Transportation Funding and Reform Commission, which will conduct the operational audits of SEPTA and see if there are any opportunities to implement cost efficiencies, revenue enhancements and service improvements for the good of the public who use this system.

The DVRPC chief John Coscia is confident that his board will approve Rendell's proposal when they meet Mar. 9 and has already been informed that the money will be transferred to SEPTA immediately following the decision.

The money was made possible by the U.S. Department of Transportation, which gave the state permission to spend $666 million in new federal highway grants. Approximately one-third of this money would result in new road and bridge improvement projects. Rendell assured his critics that this plan would not cancel or delay any future roadwork.

According to a Sept. 9 SEPTA press release, there was a possibility of a 25 percent hike in all transit fares, 20 percent service reduction, elimination of weekend services and a workforce reduction of 1,400 employees in order to meet the estimated $62 million deficit of the FY2005 operating budget. SEPTA regretted making such a decision noting the impact that it would make on the community and its business operations. However, it also expressed that state government funding could solve the problem.

Furthermore, in a Dec. 16 SEPTA press release, it was announced that the SEPTA Board of Trustees approved the plan constructed in September with the addition of modified weekend services. The two board members representing the City of Philadelphia voted against the plan as instructed by Mayor Street. Two days later he sued SEPTA in the Court of Common Pleas and won.

Governor Rendell responded to the SEPTA crisis by releasing $13 million as a relief for a portion of the FY2005 budget Dec. 21. The SEPTA Board responded Dec. 30 to delay the implementation of the plan to allow Governor Rendell and the Pennsylvania General Assembly to address the funding issue. The Board delayed the implementation of the plan until Feb. 27 due to a promise by the Governor to provide an additional $13 million.

According to a Feb. 15 press release, the SEPTA Board delayed the date to March 6 due to a lawsuit hearing set for Feb. 23 by the City of Philadelphia against the plan.