SEPTA Operating Budget Proposal Vetoed By Philadelphia Board Members

May 24, 2007
 
PHILADELPHIA, PA – During its regular monthly meeting today the two SEPTA Board members representing the City of Philadelphia vetoed a proposal based on the recommendations from SEPTA staff and the SEPTA 2008 (FY 08) Operating Budget Hearing Examiners Report to implement an 11% fare increase on July 1 in an effort to address an expected shortfall in the proposed budget.

The veto can be overturned by a vote of three quarters of the Board at the regular June Board meeting.

Facing a projected budget deficit of $150 million on a proposed operating budget of $1.022 billion, SEPTA initiated a number of actions that have resulted in an anticipated reduction in the budget shortfall to $129 million.

To address the shortfall, as proposed in the Hearing Examiners Report and revised SEPTA staff recommendations, Budget Plan A would include an 11% across the board fare increase that would generate $35 million in additional revenue while SEPTA would seek and additional $94 million in state subsidy. Under Plan A there would be no increase in the base cash fare or for tokens.

However, without the additional state subsidies SEPTA would be forced to implement the extreme and drastic measures proposed in Budget Plan B.Plan B includes a 24% fare increase that will generate $69 million in additional revenue and a 20% service reduction that would save $60 million in expenses. This plan would result in a ridership loss of approximately 20% or 40 million annual trips.In addition, as part of Plan B about 1,000 SEPTA jobs would be eliminated.