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Port Authority revs up threats of deep service cuts, layoffs
For the third time in recent years, bus and rail service are on the chopping block
Wednesday, January 03, 2007

After calling off fare increases and major service reductions twice since 2003, the Port Authority will recommend them again today.

The changes that officials say are needed to avert the newest budget crisis are expected to be the most dramatic yet, trumping previous proposals characterized as "draconian."

The number of weekday, Saturday and Sunday routes would be more than halved, including the elimination of more than 100 weekday bus routes alone.

One division bus garage, the Harmar Garage, would be closed, and hundreds of union employees and dozens of management employees laid off.

Bus cuts and changes, along with less-frequent light-rail service, would go into effect in late June, about one week before the start of the agency's 2007-08 fiscal year.

The authority is looking to address a record operating deficit of $75 million to $80 million for the next budget year.

The deficit represents the cumulative impact of the end of stopgap state funding Dec. 31; a new labor contract; early retirement obligations; and health care, pension and energy increases.

For the first time in the authority's 43-year history, the bad news for riders is to be delivered jointly with the county -- in this case, by Allegheny County Chief Executive Dan Onorato and Port Authority Chief Executive Officer Steve Bland, who came to the agency seven months ago.

The news conference will be at 10 a.m. at the County Courthouse.

The significance of Mr. Onorato's participation could not be determined, although the county appoints the nine-member authority board and contributes about $24 million annually to the operating budget.

Meanwhile, a bipartisan group of state senators representing Allegheny County pledged yesterday to help solve the authority's financial woes, but said the state would not do it alone.

Sens. Jay Costa Jr., Jane Orie, Sean Logan, John Pippy and Wayne Fontana said they would work to prevent layoffs and service cuts, but said the solution to the transit agency's problems must be broad-based and multifaceted.

"State government cannot solve the Port Authority's problems on its own," said Mr. Costa, D-Forest Hills. "It is imperative that Port Authority officials, union leaders, and representatives from the city, county, state and federal governments come to the table to work with us to find a viable solution."

"Before state government provides more resources ... it is imperative that the authority reform the way it does business, streamlines costs, and implement spending control mechanisms," said Ms. Orie, R-McCandless.

The Post-Gazette reported in November that what had been estimated to be a $31.5 million deficit in this year's $347.5 million operating budget would end up at about $20 million as a result of savings and a few small gains in revenue.

With gubernatorial and legislative elections decided and no more last-minute shifts of federal highway funds anticipated, Mr. Onorato and Mr. Bland are expected to say the dramatic changes are real and necessary, partly because the Legislature has failed to provide long-term, dedicated funding for transit.

The Port Authority has kept the details a secret, although it recently sent letters to lawmakers, giving them a heads-up about general impacts that their constituents will experience.

In addition to recommending changes today, the Port Authority will announce a series of public hearings, which are likely to be as contentious as similar gatherings in past years. Federal law requires such hearings.

In order to meet a $36.8 million gap in its current operating budget, the Philadelphia-based Southeastern Pennsylvania Transportation Authority has shifted money set aside as the state-local share for capital projects and postponed them for one year.

Port Authority officials are expected to seek the same sort of approval from the Pennsylvania Department of Transportation to close the $20 million gap in the 2006-07 budget.

SEPTA faces a projected deficit of $120 million to $140 million for the 2007-08 fiscal year that begins July 1. Officials there said they'll reconsider raising the base cash fare by $1, to $3, eliminating 800 jobs and making service cuts that would bring a 20 percent reduction in transit riders.

SEPTA officials have said they're waiting for Gov. Ed Rendell and his promise to make transportation a top priority this year before recommending service cuts and fare hikes again.

The governor's special Transportation Funding and Reform Commission said in a final report submitted in November: "The financial underpinning of the Commonwealth's transit program is inadequate and the program structure is dysfunctional. The program and revenue streams need to be completely revamped."

While it recommended an 0.9 percent increase in the state's realty tax, the panel also recommended a larger share of funding be raised locally. The commission criticized the Port Authority for having the highest wage rates in the United States when adjusted for cost of living and high health care and pension obligations.

The Port Authority's service proposals are expected to be similar to those of recent years, including eliminating, reducing and consolidating more than 100 bus and light-rail routes. Also, Mr. Bland has talked about a single-fare covering all of Allegheny County, cutting bus service to neighboring counties that provide no subsidies, and restructuring routes, such as the 33F McDonald Express.

By requiring riders to transfer buses to get Downtown, the authority estimated it could save $180,000 a year in operating expenses on the 33F, a change that became effective in November.

First published on January 3, 2007 at 12:00 am
Joe Grata can be reached at jgrata@post-gazette.com or 412-263-1985.
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