SEPTA Set To Hold Public Hearings On FY 2007 Operating Budget Proposal
May 4, 2006
PHILADELPHIA, PA -- SEPTA is set to begin public hearings this week on its Fiscal Year 2007 Operating Budget. For the second year in a row the proposed budget will not include service reductions or fare increases.
SEPTA will hold six public hearings on the proposed Operating Budget from May 5 to May 11. The SEPTA fiscal year runs from July 1 to June 30.
The FY 2007 Operating Budget proposal recommends an expense budget of $991 million, an increase of $39.2 million compared to the FY 2006 Operating Budget.The increase reflects cost escalations in the areas of wages, diesel fuel, materials and services, healthcare and prescription drugs.Most other expense areas will remain essentially at FY 2006 levels.
In order to fund the increase included in the proposed budget SEPTA remains committed to working with Governor Rendell, members of the General Assembly, and the Governor's Transportation Funding and Reform Commission.In February 2005, Governor Rendell announced a plan to flex federal transportation funds to public transit agencies throughout the Commonwealth.The Governor's plan addressed operating budget shortfalls for the balance of Fiscal Year 2005, all of Fiscal Year 2006, and first six months of Fiscal Year 2007.
With the addition of the flex funds SEPTA's initial FY 2007 budget shortfall was $72.4 million.As a result of a number of budget reducing actions undertaken by SEPTA and the receipt of an additional $5.4 million in state and local operating subsidies provided in the Governor's proposed FY 2007 budget the shortfall has been reduced by $22.1 million and is currently projected to total $50.3 million.
Even with SEPTA's budget reducing efforts the remaining budget shortfall and the chronic underfunding of transit are significant fiscal challenges that SEPTA and other Commonwealth transit providers struggle to resolve.SEPTA believes that the only reasonable solution to the statewide transportation funding crisis is the approval of a long-term subsidy source with growth potential.
Absent a solution, SEPTA will face the challenge of balancing the budget with the expected $50.3 million shortfall after the flex funding solution runs out in December 2006.The painful experience gained over the last few years demonstrates that the options of fare increases, service reductions and reductions in manpower have a negative long-term impact on the Authority's mission to provide quality public transportation throughout the five county service region.
The budget proposal and Hearing Examiner's findings will be presented for the SEPTA Board's consideration and approval at its June 22 meeting.Later in the fiscal year, SEPTA staff will present to the Board a plan to fund the remaining budget shortfall based on the recommendations of the fact finding Commission and actions taken by the Legislature.
Public hearings for the SEPTA Operating Budget proposal are scheduled from May 5 to May 11 at the following locations:
Friday, May 5, 2006 - 2 p.m., Delaware County Court House, County Council Meeting Room, 201 W. Front Street, Media, PA 19063
Monday, May 8, 2006 - 2 p.m., Montgomery County Human Service Center (formerly Sacred Heart Hospital), Community Room - Main Floor, 1430 DeKalb Pike, Norristown, PA 19404
Tuesday, May 9, 2006 - 11 a.m. and 5 p.m., SEPTA Board Room, Mezzanine Level, 1234 Market Street, Philadelphia, PA 19107
Wednesday, May 10, 2006 - 2 p.m., Bucks County Free Library, Pearl Buck Meeting Room, 150 South Pine Street, Doylestown, PA 18901
Thursday, May 11, 2006 - 2 p.m., West Chester Borough Hall, Council Chambers, 401 E. Gay Street, West Chester, PA 19380
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