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State transit funding faulted Port Authority's Skoutelas warns fare increases likely Friday, April 27, 2001 By Joe Grata, Post-Gazette Staff Writer
Gov. Tom Ridge and the state have increased the likelihood of fare increases by "shorting" public transit agencies of money, Port Authority Chief Executive Officer Paul Skoutelas said in an interview yesterday.
"In discussions with other systems, we have grave concerns about where we're headed," he said, because state transit subsidies aren't keeping up with inflation and because Ridge has frozen the prime source of transit funding.
The Port Authority of Allegheny County increased its base fare by 35 cents, to $1.60, as of April 1, and the Southeastern Pennsylvania Transportation Authority's base fare is being raised 30 cents, to $1.90, giving the Philadelphia-based system one of the nation's highest transit fares.
Pennsylvania Department of Transportation spokesman Rich Kirkpatrick argued that Skoutelas and other transit officials had misrepresented Ridge's support, saying the state ranked third in the nation in overall public transit assistance.
He said only one of eight sources of state funding for transit is frozen in Ridge's proposed 2001-02 budget.
The freeze is in the general fund, "and that supports many needs, including education," Kirkpatrick said. "There's no extra [general fund] money available next year."
Ridge proposes to keep the "mass transportation assistance fund" at $270 million, freezing the Port Authority's share at $67.6 million.
Skoutelas said revenue from the fare increase may enable the Port Authority to make ends meet for another year, but because the state budget does not provide enough from all eight state sources to keep up with a 3 percent inflation rate, the future looks bleak for 30 state transit systems.
"It's ironic," he said. "The state mandates us to balance our budget at the same time that we're being shorted in state dollars."
In addition, costs keep going up for health care, diesel fuel and utilities, while a labor contract with 2,700 bus-trolley operators, mechanics and maintenance workers expires Dec. 1.
"Those are the main things we need to be thinking about," Skoutelas said.
Dick Ober, chairman of the Beaver County Transit Authority, said higher state funding at least to the level of inflation was vital to his transit system, too.
"Clearly, we need that money," he said. "The price of everything is going up, especially fuel. We're starting to hurt."
The Port Authority's own 2001-02 preliminary operating budget, totaling about $275 million, is to be presented next month.
Skoutelas said the Port Authority, Southeastern Pennsylvania Transportation Authority and other transit systems want a 3 percent inflationary increase from the state and elimination of a $75 million "cap" on transportation funding from a share of the 6 percent state sales tax.
If Ridge would agree and lawmakers would concur, the Port Authority would receive an extra $6 million for the 2001-02 budget year.
Kirkpatrick said state transit subsidies have gone up a total of 6 percent since the 1996-97 fiscal year under the Ridge administration.
Skoutelas said the "bottom line is the increases have been too meager to keep up with costs. In terms of purchasing power, they represent a reduction in state dollars."
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