December 21, 2006
 
PHILADELPHIA, PA — The SEPTA Board has approved a closure strategy to balance the Fiscal Year 2007 Operating Budget.

A shortfall of $36.8 million in the $991 million budget will be closed by transferring funds from the Capital Budget to the Operating Budget.

While this action balances the FY 2007 Operating Budget without any cuts in transportation services or fare hikes, it delays important projects such as the modernization of the fare collection system, modernization of the Regional Rail electrical substations and rehabilitation of stations on the Broad Street Subway.

This method of “robbing Peter to pay Paul” is counter-productive and debilitating to the maintenance of SEPTA’s extensive infrastructure. It is, however, a reversible action if additional funding is received.

SEPTA is hopeful the New Year will bring action by the state governmentthat will provide a predictable, long-term funding mechanism for public transit — as recommended by the Pennsylvania Transportation Reform Commission — that will finally resolve the decade-long crisis in transit funding.