Port Authority Adopts Budget, Maintains Service for 2012

Port Authority of Allegheny County will maintain its current service, staffing and fares throughout next June under a budget adopted on Friday by its board of directors.

The $370.2-million spending plan represents around a 3.8-percent increase from last year’s budget of $356.6 million. The authority balanced it using most of its remaining $40 million in one-time use reserves and what's left of a single, $45-million emergency contribution made by former Gov. Ed Rendell.

Earlier this year, Port Authority's board  to eliminate 29 bus routes throughout the Allegheny County in an effort to stretch $45 million in highway funding.

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

The authority warned more cuts could be on the way for 2013.

If state leaders are unable to agree on a transportation-funding solution by the end of the 2012 fiscal year next June, the authority said it will 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 that he was encouraged by widespread interest in protecting transportation programs as well as Gov. Tom Corbett's initiative to seek potential solutions through the Transportation Funding Advisory Commission.

The commission is expected to issue a recommendation by Aug. 1, according to Port Authority.

In Pennsylvania, all public transit systems receive a significant level of funding for daily services based on a formula from the state government. According to Port Authority, its allocation under that formula should be $184.1 million.

“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,” the authority said in a statement. “In addition, state sales-tax receipts were down.”

Port Authority projects it will end its fiscal year in June 2012 with $10 million in reserves. Its union employees will receive a 3-percent contractual wage increase. Its nonunion employees are working under a wage freeze.

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