(The following article by Paul Nussbaum was posted on the Philadelphia Inquirer website on March 6.)
PHILADELPHIA — SEPTA hopes to spend $426 million in the next fiscal year for reconstruction, new buses and railcars, and other repairs and upgrades.
The agency’s capital budget for the 12 months that start July 1 calls for $100 million to be spent on rebuilding the Market-Frankford El in West Philadelphia. An additional $49.5 million is earmarked for new buses and $10 million for Regional Rail cars.
In past years, projects have been postponed or canceled when anticipated funding has not arrived, or when SEPTA has used capital funds to cover shortfalls in its operating budget. In each of the last seven years, SEPTA has budgeted more money than it has received; the difference has ranged from $30 million to $93 million.
In the current year, for example, SEPTA budgeted $438 million for capital projects, but will end up spending about $350 million. About $50 million less than planned was forthcoming from federal funding, and about $37 million was shifted to cover operating costs.
The 2008 budget anticipates that $200 million will come from the state, $31 million from the federal “New Starts” program, $184 million in other federal funds, and $10 million from local governments.
The budget assumes that the Pennsylvania legislature will approve Gov. Rendell’s proposal for a 6.17 percent tax on oil companies’ gross profits to aid public transit agencies. It also assumes the approval of the Bush administration’s transit-related budget requests.
The biggest portion of the capital budget is the continuing funding for the El, which has already received $524 million. Reconstruction of two of the remaining three stations in the plan – 46th Street and Millbourne – is to begin in May, and reconstruction of the final station at 63d Street is scheduled to start in spring 2008. The project is supposed to be completed, at a cost of $710 million, by the end of 2008.
SEPTA plans to buy 400 buses and 104 railcars. Also, $15 million of the 2008 capital budget is for repairs and improvements on the R5 Paoli line, the busiest of the Regional Rail lines. And $47 million is earmarked to overhaul vehicles.
SEPTA has scheduled hearings on the capital budget for 11 a.m. and 5 p.m. April 5 at its headquarters at 1234 Market St. The SEPTA board is scheduled to vote on the capital budget and the operating budget on May 24.