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SEPTA Considers Rate Hike
    PHILADELPHIA, May 17 /PRNewswire-USNewswire/ -- At its regular monthly
meeting on Thursday, May 24 the SEPTA Board will consider a proposal based
on the recommendations from the SEPTA 2008 (FY 08) Operating Budget Hearing
Examiners Report and SEPTA staff to implement an 11% fare increase on July
1 in an effort to begin to address the expected shortfall in the proposed
budget.
    Facing a projected budget deficit of $150 million on a proposed
operating budget of $1.022 billion, SEPTA held a series of public hearings
in April to provide details of proposed budget plans to resolve the
shortfall based on the receipt of additional state subsidies as well as
without added state funding.

    The initial budget shortfall has been impacted by a number of SEPTA
actions that have resulted in an anticipated reduction in the budget
shortfall to $129 million. To address the shortfall, as proposed in the
Hearing Examiners Report and revised SEPTA staff recommendations, Budget
Plan A (Simplification Fare Proposal) includes an 11% across the board fare
increase effective July 1 that would generate $35 million in additional
revenue while SEPTA would seek an additional $94 million in state subsidy.
Under Plan A there would be no increase in the base cash fare or for
tokens. By taking these actions SEPTA on its own has addressed more than
one-third of its operating budget shortfall.
    The proposal is also consistent with the recommendations of the PA
Transportation Funding and Reform Commission which calls for a "Partnership
of Actions" to address the serious public transportation funding issues in
the Commonwealth. Both the State Transportation Funding and Reform
Commission and the HR 538 Transportation audit recommended that SEPTA
implement periodic fare increases. There have been no SEPTA fares increases
implemented since 2001.
    However, without the additional state subsidies SEPTA will be forced to
implement the extreme and drastic measures proposed in Budget Plan B
(Simplification Fare Proposal). Plan B, as proposed and modified in the
Hearing Examiners Report and SEPTA staff proposal, includes a 24% fare
increase that will generate $69 million in additional revenue and a 20%
across the board service reduction that would save $60 million in expenses.
This plan would result in a ridership loss of approximately 20% or 40
million annual trips. In addition, as part of Plan B about 1,000 SEPTA jobs
would be eliminated. SEPTA staff is recommending implementation of this
plan on September 2, 2007.
    Neither the Hearing Examiners Report or SEPTA staff considers Plan B to
be in the best interests of the region and the Commonwealth. They suggest
that the plan should only be considered and implemented as a matter of last
resort should the Legislature and Governor not reach an agreement on a
long-term funding plan for transit in the state. Subsequently, it has been
recommended to the Board that implementation of Plan B be delayed in order
to provide the parties additional time beyond the start of the SEPTA Fiscal
Year on July 1 to reach an agreement.
    In PA Governor Edward G. Rendell's recent budget proposal he reiterated
the Pennsylvania Funding and Reform Commission's report conclusion that
statewide transit needs total $760 million annually and that a new
dedicated funding source was necessary to provide the long-term viability
of transit service throughout the state. As a solution, he recommended a
6.17% oil company gross profits tax. The new funds would address SEPTA's
budget shortfall and provide long-term funding stability.
                 BUDGET PLAN A (SIMPLIFICATION FARE PROPOSAL)

     - Plan recommended for implementation on July 1 by Hearing Examiners
       Report and SEPTA staff
     - Fares increased by an average of 11%
     - Cash Base Fare remains $2.00
     - Transfers to be discontinued effective July 31

                              TRANSIT DIVISIONS

                          Current           Proposed

     Cash                 $2.00              $2.00
     Tokens               $1.30              $1.30
     Transfers            $0.60         discontinued effective July 31
     Weekly Pass          $18.75             $20.75
     Monthly Pass         $70.00             $78.00
     Day Pass             $5.50              $6.00

                                REGIONAL RAIL

     - Proposal reduces the number of fare zones by 2, calling for the merging
       of Zone 1 and Zone 2 stations to a single zone. In addition, Zone 4
       would also be eliminated and specific stations would become Zone 3 or
       Zone 5 according to air mile distance from Central Philadelphia.
       Single and ten-trip tickets for current Zone 1 stations will be
       discontinued on July 1.  A new T1 Weekly and Monthly pass would be
       available through December for current Zone 1 Regional Rail Stations at
       a price 20% higher than current prices as part of the progression to
       the new Zone.

     Regional Rail Fares for Zone 3 as an example:

                          Current           Proposed

     Peak (one-way)       $4.50              $5.00
     Off Peak (one-way)   $3.75              $4.25
     Ten Trip             $42.50             $47.50
     Weekly               $34.50             $39.00
     Monthly              $126.50            $142.50

                                 PARATRANSIT

     Shared Ride          Current            Proposed
     (Seniors)
     Cash                 $3.50              $4.00
     Group                $3.20              $3.70

     ADA                  Current            Proposed
     (Riders with Disabilities)
     Cash                 $3.50              $4.00
     Tokens               Two + $.50         Two + $1.00
     Pass                 Zone 2 TrailPass   Zone 2 TrailPass
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