Port Authority Adopts Budget, Maintains Service for 2012

The Port Authority will maintain its current service, staffing and fares through next June with a budget its board of directors adopted today.

The $370.2 million spending plan is about a 3.8 percent increase from last year’s budget of $356.6 million. It was balanced using most of the Port Authority’s remaining $40 million in one-time use reserves and what’s left of a $45 million emergency contribution that former Gov. Ed Rendell allocated.

Earlier this year, the Port Authority's board to eliminate 29 bus routes throughout the county, including the popular that many Cranberry residents use to get downtown -- in an effort to stretch $45 million in highway funding.

According to a Port Authority news release, the transit authority was forced to increase fares and eliminate 260 positions to help offset cuts in state funding. Prior to the receipt of the highway funding, 47 routes were set to be eliminated.

If state leaders are unable to agree on a transportation funding solution by the end of the 2012 fiscal year in June, the Port Authority said it would again face a significant deficit for 2013 and be forced to cut more services.

"There's a window of opportunity now for leaders across the state to finally resolve the transportation funding crisis," Port Authority CEO Steve Bland said. "Collectively, we can establish a more reliable and sustainable funding source to ensure public transportation continues benefiting riders in the Pittsburgh region and throughout the state."

Bland said widespread interest in protecting transportation programs and an initiative that Gov. Tom Corbett proposed to seek potential solutions through the Transportation Funding Advisory Commission is encouraging.

The commission is expected to issue a recommendation by Aug. 1.

In Pennsylvania, all public transit systems receive a significant level of funding for daily service based on a formula from the state government. According to the Port Authority, it should receive $184.1 million from the state.

“However, a state budget shortfall was caused last year primarily by a federal decision to not allow Pennsylvania to generate revenue by charging tolls on Interstate 80. In addition, state sales tax receipts were down,” the Port Authority said.

Port Authority projects it will end its fiscal year in June 2012 with $10 million in reserves. Union employees will receive a 3 percent contractual wage increase. Its nonunion employees have had their wages frozen.