(SEPTA issued the following news release on January 22.)
PHILADELPHIA — SEPTA announced today that it is currently projecting a deficit of approximately $70 million in its Fiscal Year 2005 Operating Budget (SEPTA’s Fiscal Year runs from June 1 to July 31). The projection is based on escalating costs for healthcare (medical and prescriptions), pensions, ADA Paratransit costs and other operating expenses while operating revenues and subsidies have remained essentially flat.
“Passage of the FY 2004 PA state budget returned SEPTA to where we were last January,” said SEPTA Board Chair Pasquale T. Deon, Sr. “However, as we indicated before, we are facing a deficit going into the next budget year.”
“While we were able to balance our operating budget last year without implementing the severe service cuts and fare changes that were initially considered, without greater financial support in both the near and long term, our ability to provide present transit services will again be jeopardized,” said Deon. “We are continuing to work diligently with state government to address the fundamental issue of providing a long term and predictable source of subsidies for SEPTA and transit agencies statewide.”
In the past eight years, SEPTA has maintained a balanced budget through a series of aggressive actions including reducing personnel, reducing expenses and implementing a fare increase. In addition, measures taken to reduce the SEPTA FY 2004 Operating Budget included reductions in cost of materials and services, a more stringent review of internal and external claims, service changes, and an increase in parking lot fees from $.50 to $1.00.
State operating subsidies have increased in only two of the past nine years. As mandated by state law, the SEPTA Board has to adopt a balanced budget prior to July 1, 2004.