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(SEPTA issued the following news release on February 15.)

PHILADELPHIA — The SEPTA Board has delayed the effective date of a plan that would increase fares and reduce service across the system from February 27 to March 6.

The implementation date will be postponed because a hearing scheduled for February 23 for a lawsuit filed by the City of Philadelphia against the plan was rescheduled by the judge in the case to February 28.

This is the second time that the effective date has been delayed. Initially, the SEPTA Board delayed the start of the fare increase and service reductions from January 23 to February 27 as Governor Rendell was instrumental in providing an additional $13 million in subsidies to SEPTA for this fiscal year (the SEPTA fiscal year runs from July 1 to June 30).

SEPTA would now raise fares on March 6 by 25% across the board with the base cash fare for transit service increasing from $2.00 to $2.50. At its regular monthly meeting on February 24 the SEPTA Board will also consider the second phase of the fare increase proposal that would raise the base fare from $2.50 to $3.00.

Transit service system-wide would also be reduced by 20% on March 6.

The cost to SEPTA to defer the fare increase and service reduction is $2 million. To recover the costs of the delay SEPTA will use $2 million from the settlement of its claim against American Premier Underwriters (the successor to the Penn Central Railroad) for clean-up costs to the Paoli Rail Yard.

In addition, SEPTA is continuing to work with Governor Rendell and the Pennsylvania General Assembly to acquire the additional funding necessary to cover the $49 million budget gap in its Fiscal Year 2005 Operating Budget and to achieve a long-term dedicated funding source.