Governor Rendell Offers Budget Solution to Pennsylvania Public Transit Funding Crisis
“…a lack of a dedicated funding source is crippling public transit systems that provide more than 400 million rides a years and are facing 25% service cuts”
— Governor Ed Rendell
2007-2008 Budget Address
In his Fiscal 2007-2008 budget address, Governor Rendell outlined a comprehensive proposal to address the escalating public transit funding crisis impacting agencies all across Pennsylvania.
Following the findings and recommendations presented by the Transportation Funding and Reform Commission, the Governor unveiled a $1.7 billion dollar spending package designed to resolve these critical needs through innovative funding sources by:
- Establishing a new gross profits tax of 6.17% levied on oil companies that do business in Pennsylvania. This new tax, scheduled to begin in March 2008, is calculated to generate $760 million a year for public transit.
The Governor also spoke about a proposal – leasing public assets – to provide funds for bridge and highway renewal projects across the state.
The public transit funding stream will ensure that SEPTA remains a viable, fiscally stable, resource that supports the economic vitality of the five county service region and the Commonwealth. Without this funding the Authority can not address a staggering $120-140 million FY2008 budget deficit, complete vital state of good repair and facility improvement projects, or continue to build and enhance transit services.
After listening to the budget address, SEPTA General Manager Faye Moore issued the following statement:
“SEPTA is extremely pleased that transportation had such a prominent place in the governor’s budget address today.
We look forward to working with the Governor and the legislature on the details of his long-term, comprehensive and innovative plan to solve the financial crisis facing public transportation throughout the state.
SEPTA, however, will and must continue to assess the effect that our projected short-term funding shortfall will have on our budget as we move into the next fiscal year.”
To read more about the Governor’s proposals:
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