HARRISBURG -- House Republican Leader Sam Smith is applauding the Port Authority of Allegheny County for making moves to reduce its expenses, but he's pessimistic about whether the state Legislature will provide significant new funding for mass transit this year.

The Punxsutawney Republican, who leads the 101-member GOP caucus, said he's encouraged by steps that Port Authority Chief Executive Officer Steve Bland has taken to reduce his $80 million budget deficit, like cutting some low-ridership routes on June 17, trimming 267 current transit jobs by July, and raising bus and trolley fares in January.

"This new guy at the Port Authority seems to be taking [the financial problems] seriously," Mr. Smith said. "He 'gets' it -- they need to make changes."

Referring to the upcoming layoffs, he said, "That's pretty serious. He realizes that there is nothing the Legislature will do to give them all the money they want, so they need to deal with the fares and the least financially viable routes."

Mr. Smith said the state already provides $900 million a year for mass transit systems around the state, which he said is a considerable amount. He said the state subsidy already accounts for 75 percent of the Southeastern Pennsylvania Transportation Authority's budget and about 63 percent of the Port Authority budget.

"Transit agencies already get a pile of state aid," he said. "It's time for local or county agencies to come up with additional funds."

Mr. Smith said there is almost no support in his caucus for Gov. Ed Rendell's plan to impose a 6.17 percent tax on oil company profits as a way to raise an estimated $760 million more each year for mass transit.

"It's dead," he said.

Taxing oil company profits would just mean an increase in gasoline costs at the pump, as oil companies pass the tax along to consumers, he contended.

Many House Republicans come from small towns and rural areas of the state, where most constituents drive cars rather than ride buses, and raising the price of gasoline is the last thing the GOP wants to do.

Democrats control the House by a 102-101 margin, but many of them don't like the oil tax plan for the same reason -- fear that gas prices will rise and voters will get angry.

Mr. Smith didn't offer any significant substitute for the governor's plan to aid mass transit. He wouldn't say how much additional transit money the Legislature may provide, but said it wouldn't be anything like $760 million a year.

He said if mass transit agencies need additional money to close deficits, which both the Port Authority and SEPTA do, they should look to city and county sources primarily, not the state.