Steve Bland is the man on the hot seat with the Port Authority, the CEO who arrived last June, in time for the system's deepest financial crisis.
A projected $80 million deficit threatens to force painful changes like a 25 percent reduction in service hours, the elimination of 124 weekday routes and a fare increase -- effective in three months. The proposals were the target of anguished testimony at hearings across the county.
Last Monday Mr. Bland said he will recommend a series of money-saving changes that, while not enough to prevent all of the service rollbacks, are necessary to reduce spending. If approved by the authority's board at its March 23 meeting, these changes, plus moving the administrative office from Downtown back to a building it owns in Manchester, could save $5 million to $6 million a year.
Among the proposals, beginning July 1, for managers and other nonunion personnel are: elimination of a lucrative $500 monthly pension supplement, an end to lifetime health care, curtailment of the buy-back of previous time with public employers for use in calculating length of service, raising health-care contributions to 2 percent of salary in fiscal 2008 and 3 percent of salary the next year, freezing salaries in fiscal 2008, eliminating unlimited accrual of sick leave and erasing 56 budgeted positions.
Some of the pension provisions were criticized by state Auditor General Jack Wagner in an interim report by his office, part of an audit being done on the Port Authority that may reveal other areas for savings.
Mr. Bland, who is subject to these terms, volunteered for additional belt-tightening. He would take a three-year salary freeze, decline a separate deferred compensation contribution and give up an authority-owned vehicle and parking space (he actually stopped using the car in September).
While passengers are being asked for sacrifices, it's only right that employees make concessions that will both save dollars and strengthen the integrity of the Port Authority. This welcome austerity must be extended, however, into the next round of negotiations with union workers.
Mr. Bland is running this system at a difficult moment without the benefit of much history in Allegheny County. But that can work to his advantage as someone who is new on the scene, forced to improve efficiency and not beholden to the old costly ways.
Port Authority customers deserve more fresh thinking at the top aimed at rescuing the system and preserving service. These proposals show Steve Bland and the system's management headed down that road. It's time for Harrisburg to take notice and likewise commit itself to a transit solution.