Tuesday, March 15, 2005
Agency mismanagement rewarded with highway funds
The Southeast Pennsylvania Transportation Authority (SEPTA), which handles rail transit for most of the Philadelphia region, is badly mismanaged and expects to run up hundreds of millions of dollars of deficits in the next few years. If it were Enron, its directors might go to jail. Instead, it is rewarded with increased funding.
Pennsylvania's governor, Edward Rendell, proposes to give $412 million of the $666 million in highway funds that the state is expected to get under the new federal transportation bill to SEPTA over the next six years. As a first step, he twisted the arms of the Delaware Valley Regional Planning Commission to transfer $42.5 million in highway funds to SEPTA to cover its deficits this year.
The planning commission was not happy about doing so, however. Diverting highway money to transit is "not a viable strategy," said the commission's transportation director because "SEPTA's deficits will only increase over time." As long as someone is willing to throw money at them, they sure will!
To get the governor to give it the money, SEPTA has been threatening service cutbacks and fare increases for months. Now, having gotten its first installment, it is keeping the pressure up. Unless a guarantee of more money is forthcoming, it says, it may still increase fares and cut service because it projects a $96 million deficit in 2006.
Why doesn't it convert some of those expensive trains to low-cost bus service? Why doesn't it contract out some of its bus operations to private operators, which could save it millions? Agencies that contract out spend only half as much per bus mile as agencies that operate the buses themselves. SEPTA spends nearly $400 million a year operating buses. If it contracted out half of those buses, it could save $96 million a year and eliminate its deficit. But why bother when you can just hold up the governor for more highway money.
The main opponents of contracting out are, of course, the transit unions. It is worth noting that Philadelphia transit unions chartered a train to the state capital to take "transit supporters" to lobby for more money to fund this deficit.
Pennsylvania's governor, Edward Rendell, proposes to give $412 million of the $666 million in highway funds that the state is expected to get under the new federal transportation bill to SEPTA over the next six years. As a first step, he twisted the arms of the Delaware Valley Regional Planning Commission to transfer $42.5 million in highway funds to SEPTA to cover its deficits this year.
The planning commission was not happy about doing so, however. Diverting highway money to transit is "not a viable strategy," said the commission's transportation director because "SEPTA's deficits will only increase over time." As long as someone is willing to throw money at them, they sure will!
To get the governor to give it the money, SEPTA has been threatening service cutbacks and fare increases for months. Now, having gotten its first installment, it is keeping the pressure up. Unless a guarantee of more money is forthcoming, it says, it may still increase fares and cut service because it projects a $96 million deficit in 2006.
Why doesn't it convert some of those expensive trains to low-cost bus service? Why doesn't it contract out some of its bus operations to private operators, which could save it millions? Agencies that contract out spend only half as much per bus mile as agencies that operate the buses themselves. SEPTA spends nearly $400 million a year operating buses. If it contracted out half of those buses, it could save $96 million a year and eliminate its deficit. But why bother when you can just hold up the governor for more highway money.
The main opponents of contracting out are, of course, the transit unions. It is worth noting that Philadelphia transit unions chartered a train to the state capital to take "transit supporters" to lobby for more money to fund this deficit.
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