LEGISLATORS PUSH FOR MASS TRANSIT FUNDING

PITTSBURGH, JUNE 18, 2004 -- A bipartisan group of state lawmakers representing Western Pennsylvania today called for a significant boost in mass transit funding from the state.

“It’s time that Pennsylvania takes a bold step to ensure sufficient mass transit funding for our citizens,” said Sen. Jay Costa, Jr., who serves as a member of the Senate Transportation Committee. “State subsidies for mass transit have not increased in six of the past nine years and those who depend on its vital services are feeling the pinch of fewer routes and less availability. Certainly the answer does not include higher fares and reduced service.”

Costa (D-Forest Hills) was joined by a bi-partisan group of Senate and House lawmakers, in addition to representatives of the Port Authority of Allegheny County, in calling for the additional funding.

Specifically, the lawmakers would like this year’s state budget process to include passage of legislation (SB 1162 or HB 2697) that would dedicate an additional 3.2184 percent of the state sales tax for mass transit and lift a $75 million dollar cap on sales tax transfers for mass transit. Currently, 1.22 percent of the sales tax is dedicated to mass transit funding.

The change would add approximately $280 million to mass transit across the state dedicating approximately $64 million to the Port Authority without any tax increase. The legislation also would lift the $75 million cap placed on sales tax revenue going to mass transit needs.

 “Mass transit is in dire need of a dedicated, stable, and growing source of funding,” said state Sen. Jim Ferlo (D-Highland Park). “A significant boost of existing sales tax revenue would provide that source.”

 “Every year should not present a funding crisis for mass transit,” said state Sen. Sean Logan (D-Monroeville). “Those who depend on the Port Authority systems should not have to worry year in and year out whether the route they utilize will continue to exist or whether they’ll be faced with a fare increase. That’s why we need a major change in the funding formula.

“A quality mass transit system is one of the keys to our success in creating jobs in this region,” said state Sen. Jack

Wagner (D-Beechview), who was unable to attend the news conference but offered his support. “People need an affordable and flexible way of getting to work. That’s why our buses and light rail systems are so vital.”

Mass transportation in Pennsylvania is funded from a variety of sources, including: the state’s General Fund, the Public Transportation Assistance Fund (tax on tire sales, motor vehicle rentals etc.), Act 3 of 1997 (1.22% of sales tax revenues) and Lottery Revenue (Shared Ride, passes etc.).

“Pennsylvania can no longer tread water when it comes to funding mass transit,” said state Sen. Jane Orie (R-McCandless). “We need a major change that permanently addresses the funding needs of public transportation.”

“It’s not just service and bus routes that will benefit,” said state Sen. John Pippy (R-Moon). “There is a great deal of need for infrastructure improvements and capital investments for the long term that will benefit this region.”

Among the state representatives participating in the news conference was Rep. Frank Dermody (D-Oakmont).  “Pennsylvania lags behind other states when it comes to providing dedicated state support for public transportation,” Dermody said.

 “Including this change will continue the current effort to stabilize and enhance mass transit funding and place those resources where needed the most.”

     Last year’s dedication of a portion of the state sales tax initiated an effort to fill the mass transit funding shortfall caused by decreasing revenues from the Public Utility Realty Tax Act (PURTA).

Over the last eight years, the Port Authority has implemented costs savings and revenue initiatives totaling $146,245,000 that have included wage and benefit freezes, job eliminations, lay-offs and restructuring of various contracts to produce those savings.

Also in attendance were Port Authority of Allegheny County Chairman John A. Brooks and Chief Executive Officer Paul P. Skoutelas.